WEBVTT 1 00:00:00.120 --> 00:00:01.879 You've got a good plan in place. I think part 2 00:00:02.000 --> 00:00:04.879 of the trust that we're bringing to the stable coin 3 00:00:04.960 --> 00:00:10.919 market is around Ripple's brand. They're proven ability to withstand 4 00:00:11.720 --> 00:00:16.559 pressures that occur, and certainly the balance sheet that Ripple 5 00:00:16.640 --> 00:00:19.359 has I think will provide a lot of confidence and 6 00:00:19.399 --> 00:00:21.800 stability sure into the issuance of that. 7 00:00:26.719 --> 00:00:29.239 This episode is brought to you by Uphold, which is 8 00:00:29.280 --> 00:00:32.000 one of the top crypto platforms in the industry. I've 9 00:00:32.039 --> 00:00:35.000 been a user of Upholds since twenty eighteen. They make 10 00:00:35.039 --> 00:00:37.719 it easy to buy, sell, and trade crypto. 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Below one thousand, it's two percent 22 00:01:12.879 --> 00:01:16.439 But what's great about this product, guys, is there's no 23 00:01:16.560 --> 00:01:19.519 lock ups, there's no monthly fees, there's no subscriptions, and 24 00:01:19.599 --> 00:01:22.799 best of all, it is FDIC insured, just like a bank. 25 00:01:23.079 --> 00:01:25.760 So if you'd like to learn more about Uphold, visit 26 00:01:25.799 --> 00:01:28.959 the link in the description. Jack, great to see you. 27 00:01:29.040 --> 00:01:30.760 How are you enjoying the conference so far? 28 00:01:30.840 --> 00:01:33.319 It's great, it's great, a lot of positive energy here, 29 00:01:33.359 --> 00:01:37.000 a beautiful place. Always nice to be in Miami. What's 30 00:01:37.040 --> 00:01:37.480 not to like? 31 00:01:37.599 --> 00:01:39.719 Have you gotten any beach time in by any chance? 32 00:01:40.000 --> 00:01:43.959 I jumped in the ocean quickly yesterday and tried this morning, 33 00:01:44.120 --> 00:01:45.959 and the towels weren't out yet, and so I didn't 34 00:01:46.000 --> 00:01:48.760 want to run through the lobby soaking wet, so I 35 00:01:48.799 --> 00:01:51.480 held off. I'll get back in though, oh for sure. 36 00:01:51.680 --> 00:01:53.879 Well lucky you, because I'm not going to have any time. 37 00:01:53.879 --> 00:01:57.040 I have to get out of here by tomorrow. But anyway, Jack, 38 00:01:57.079 --> 00:02:00.439 we've spoken over the years. Your title is s VP 39 00:02:00.560 --> 00:02:03.799 of stable Coins at Ripple, and very timely, very on 40 00:02:03.879 --> 00:02:07.079 topic because r l U s d H is around 41 00:02:07.120 --> 00:02:08.199 the corner to be launched. 42 00:02:08.520 --> 00:02:10.639 Tell us about the r l U s d stable coin. 43 00:02:11.120 --> 00:02:13.919 Well, it's a dollar back stable coin. Really right down 44 00:02:13.960 --> 00:02:16.840 the middle of the fairway in terms of the attributes. UH. 45 00:02:17.199 --> 00:02:19.080 In terms of how we're bringing it, it's a heavily 46 00:02:19.159 --> 00:02:23.319 regulated UH. It will be once approved, heavily reg regulated 47 00:02:23.319 --> 00:02:29.240 stable coin backed very conservatively by US dollar and dollar equivalent. 48 00:02:29.280 --> 00:02:30.599 So we can talk a little bit more about that 49 00:02:31.439 --> 00:02:36.199 monthly at testations by third party audit firm, highly credible 50 00:02:36.240 --> 00:02:39.479 partners in terms of the reserve management, the banking partners 51 00:02:40.319 --> 00:02:43.159 we're working with. We're launching it on both the ethereum 52 00:02:43.240 --> 00:02:47.000 and XRPL ledger, which is a big deal, which we're 53 00:02:47.039 --> 00:02:51.439 quite excited about, sure and uh really eager to get going. 54 00:02:51.479 --> 00:02:54.599 We've been testing for for some time, and i'd say, 55 00:02:54.599 --> 00:02:57.719 and I'm been sure testing phase both internally and then 56 00:02:57.719 --> 00:03:00.000 more recently with third parties. So we're excut. 57 00:03:00.680 --> 00:03:04.080 You mentioned the XRP ledger and etherorem. One of the 58 00:03:04.120 --> 00:03:07.759 things that we see other competitors are doing is launching 59 00:03:07.759 --> 00:03:10.319 an other blockchain. So are their plans to expand eventually 60 00:03:10.360 --> 00:03:12.719 to other blockchains that have more interoopability. 61 00:03:12.840 --> 00:03:15.080 Yeah, I think the fact that we launched a one 62 00:03:16.159 --> 00:03:20.120 not only the XRPL but also in Etheroeum tells you 63 00:03:20.159 --> 00:03:22.719 that we recognize that there are other ones that the 64 00:03:22.759 --> 00:03:24.919 market will want to utilize, and we want to be 65 00:03:24.960 --> 00:03:27.479 supportive and collaborative there. So it's not a winner take 66 00:03:27.520 --> 00:03:29.719 all either with just one stable point out there or 67 00:03:29.759 --> 00:03:32.240 just one chain. So my sense is that we will 68 00:03:33.000 --> 00:03:35.360 launch on other chains over time. That's certainly in our 69 00:03:35.400 --> 00:03:40.000 product roadmap. We are quite excited about the opportunity to 70 00:03:40.080 --> 00:03:43.159 launch this on the XRPL for obvious reasons. We feel 71 00:03:43.199 --> 00:03:46.319 like it's a very advantageous one from a cost, from 72 00:03:46.360 --> 00:03:50.759 a speed, from a security stability standpoint, and there are 73 00:03:50.800 --> 00:03:56.280 a lot of native use cases within the XRPL ecosystem 74 00:03:56.479 --> 00:03:58.919 that are eager for a stable cooin on that chain, 75 00:03:59.039 --> 00:04:02.000 So we're excited about what opportunities exist there. 76 00:04:02.240 --> 00:04:03.520 So, speaking of native. 77 00:04:04.919 --> 00:04:09.080 Demand, your current clients, whether it be payment companies or banks, 78 00:04:09.840 --> 00:04:12.159 are you planning to Are they planning to leverage this 79 00:04:12.599 --> 00:04:14.719 of in talks you probably can't name names and so. 80 00:04:14.680 --> 00:04:17.120 Forth, but are they planning to leverage it to move money? 81 00:04:17.199 --> 00:04:20.800 Yeah? I mean we've been historically a pretty large mentor 82 00:04:20.800 --> 00:04:23.120 of stable coins in our payments business. We had a 83 00:04:23.160 --> 00:04:25.680 panel earlier this morning. We talked about one of the 84 00:04:25.720 --> 00:04:28.560 real world use cases for stable coins specifically as cross 85 00:04:28.600 --> 00:04:32.199 border payments, remittances, etc. And that's been a core kind 86 00:04:32.240 --> 00:04:35.560 of bedrock or foundational piece of Ripples business from you know, 87 00:04:35.600 --> 00:04:38.439 over the past twelve years, and so we've borne witness 88 00:04:38.519 --> 00:04:41.319 to the use case within payments that has evolved over 89 00:04:41.399 --> 00:04:44.800 time with stable coins. And while we won't exclusively use 90 00:04:44.959 --> 00:04:48.240 r O USD in the payments business, we do think 91 00:04:48.240 --> 00:04:51.439 that it will over the near term be the default 92 00:04:51.839 --> 00:04:56.040 stable coin being used along with others, but we'll certainly 93 00:04:56.120 --> 00:04:58.079 use that there. And we've been speaking to our partners 94 00:04:58.079 --> 00:05:02.160 our clients about that, hearing pain points that may exist 95 00:05:02.959 --> 00:05:07.040 with other stables, or more constructively, kind of a wish 96 00:05:07.040 --> 00:05:11.240 list of attributes or features that a stable coin would have. 97 00:05:11.600 --> 00:05:13.519 A lot of that has to do with the regulatory 98 00:05:13.519 --> 00:05:16.680 footprint that we're bringing to bear. Part of that has 99 00:05:16.720 --> 00:05:19.120 to do with the costs associated with it as well, 100 00:05:19.720 --> 00:05:22.879 the lack of friction, the speed. There's a number of 101 00:05:22.920 --> 00:05:25.199 I think really positive use cases and just being part 102 00:05:25.199 --> 00:05:28.199 of that flywheel that will get created, you know, with 103 00:05:28.480 --> 00:05:31.639 the different market participants of interest to people. 104 00:05:31.600 --> 00:05:35.079 Sure tell us a bit about the reserves will that 105 00:05:35.160 --> 00:05:37.959 consists of US treasuries and what are some of the 106 00:05:38.000 --> 00:05:40.240 steps you're going to take to avoid any type of 107 00:05:40.240 --> 00:05:44.480 deep pegging situations like what happened with Silbrigate Bank and USDC. 108 00:05:45.160 --> 00:05:48.160 We say boring is the new sexy around here. So 109 00:05:48.240 --> 00:05:51.560 that the reserves are going to be again very conservatively 110 00:05:51.600 --> 00:05:56.040 constructed as part of our application process of submitted a 111 00:05:56.040 --> 00:06:01.120 reserve management policy document. There's going to be a healthy 112 00:06:01.360 --> 00:06:04.480 balance of cash in the reserves. Cash cash and everything 113 00:06:04.480 --> 00:06:06.519 else is a US dollar dollar equivalent, so it could 114 00:06:06.560 --> 00:06:09.279 be money market funds or treasury bills, but that's it. 115 00:06:09.319 --> 00:06:13.240 There are no other assets beyond cash equivalent highly liquid 116 00:06:13.879 --> 00:06:17.439 UH and you know to be there for the purposes 117 00:06:17.439 --> 00:06:21.160 of meeting any redemptions. You know they come through where 118 00:06:21.319 --> 00:06:24.199 users want to swap out their stable and get their 119 00:06:24.240 --> 00:06:28.560 dollar back, and so feel very good about that. Again, 120 00:06:28.680 --> 00:06:31.759 very very conservative from a deep pegging standpoint. We run 121 00:06:31.800 --> 00:06:35.120 a number of different analysis such would that you've got 122 00:06:35.120 --> 00:06:37.639 a good plan in place. I think part of the 123 00:06:37.680 --> 00:06:40.639 trust that we're bringing to the stable coin market is 124 00:06:40.839 --> 00:06:47.759 around Ripple's brand. They're proven ability to withstand UH pressures, 125 00:06:47.879 --> 00:06:50.240 you know that that occur, and certainly the balance sheet 126 00:06:50.759 --> 00:06:53.319 that Ripple has I think will provide a lot of 127 00:06:53.360 --> 00:06:56.920 confidence and stability sure into the issuance of that. When 128 00:06:56.959 --> 00:07:00.360 the other reserve banks failed a couple of years ago. 129 00:07:00.399 --> 00:07:02.639 I think there were a number of lessons learned the 130 00:07:02.720 --> 00:07:06.680 end of the day, and DFS has guidance around the 131 00:07:06.759 --> 00:07:11.199 types of banks that are suitable in terms of custing reserves. 132 00:07:11.600 --> 00:07:14.000 You know, we're into ultimately the too big to fail. 133 00:07:14.199 --> 00:07:16.439 Is there a scenario where you know, all banks can 134 00:07:16.480 --> 00:07:20.560 fail theoretically along the continuum possible? I guess the answers yes, 135 00:07:20.600 --> 00:07:21.720 But you and I don't want to be there, and 136 00:07:21.720 --> 00:07:24.160 I think we're going to have bigger problems when that happens. 137 00:07:24.199 --> 00:07:28.199 But we've chosen very robust partners to work with, and 138 00:07:28.240 --> 00:07:31.319 so again it's one of the aspects that I mentioned 139 00:07:31.360 --> 00:07:33.240 at first. You know, we're judged by the company we keep. 140 00:07:33.600 --> 00:07:36.759 We want to partner with the best and the brightest 141 00:07:36.800 --> 00:07:39.360 out there from an institutional standpoint, and all of our 142 00:07:39.399 --> 00:07:41.879 stablecoin business is institutional, so it's really a B to B. 143 00:07:42.519 --> 00:07:47.759 Some of our institutional distribution partners will support more retail 144 00:07:47.839 --> 00:07:51.480 use cases, but our direct relationship with distributors and other 145 00:07:51.920 --> 00:07:53.879 ecosystem partners are all institutional. 146 00:07:54.879 --> 00:08:00.120 Now, on that note of having these banking partners. So 147 00:08:00.519 --> 00:08:03.759 will the reserves be spread across different banking partners, maybe 148 00:08:03.759 --> 00:08:06.519 some of which you already have to mitigate any type 149 00:08:06.519 --> 00:08:08.839 of centralized failing situation like a silvergate. 150 00:08:08.920 --> 00:08:12.879 That's right, and over time we expect that there are 151 00:08:12.920 --> 00:08:16.160 scenarios where we could have multiple banks holding reserves, and 152 00:08:16.160 --> 00:08:18.639 that will evolve over time. I think also as we 153 00:08:19.079 --> 00:08:22.399 expand the geographic footprint, you know, there are many jurisdictions 154 00:08:22.399 --> 00:08:26.399 that will be able to operate in with our current 155 00:08:26.480 --> 00:08:29.839 regulatory portfolio if you will. And I think there are 156 00:08:29.879 --> 00:08:33.360 other jurisdictions where over time will seek other licenses, and 157 00:08:33.399 --> 00:08:37.480 those different regional jurisdictions may have requirements to house reserves 158 00:08:37.480 --> 00:08:40.720 in different places, so that we'll have a knock on 159 00:08:40.759 --> 00:08:43.720 effect and a positive way of distributing any risk from 160 00:08:44.000 --> 00:08:45.519 a bank counter party standpoint. 161 00:08:45.519 --> 00:08:49.360 There, gotcha, this is something I've been thinking about over 162 00:08:49.360 --> 00:08:51.120 the years. And you may not be able to tank 163 00:08:51.159 --> 00:08:53.919 to this, But do you eventually see stable coin issues 164 00:08:54.120 --> 00:08:57.039 like Ripple having to plug in directly to the US 165 00:08:57.159 --> 00:08:58.879 Treasury at some point? 166 00:08:58.919 --> 00:08:59.440 I don't know. 167 00:09:00.320 --> 00:09:02.639 I was thinking about that after the Silvigate situation, but 168 00:09:02.960 --> 00:09:04.360 or we're too far away from that. 169 00:09:04.759 --> 00:09:07.360 Well, we're not there yet. And again, you know, I 170 00:09:07.360 --> 00:09:13.080 think different geographic jurisdictions may have different requirements. Sometimes, you know, 171 00:09:13.200 --> 00:09:15.679 banks will have access to the FED window if you're 172 00:09:15.679 --> 00:09:18.759 a depository institution. Most of the stable coins that are 173 00:09:18.759 --> 00:09:22.600 issued today are either not regulated, the largest falling into 174 00:09:22.600 --> 00:09:26.440 that camp. Others are regulated out of money transmitter licenses 175 00:09:27.440 --> 00:09:30.320 and a subset of minority in the US elise are 176 00:09:30.759 --> 00:09:34.679 issued through trust companies, and so Standard Custody, which is 177 00:09:34.720 --> 00:09:37.039 the applicant for the stable coin license, is a limited 178 00:09:37.039 --> 00:09:39.919 purpose trust company. As such, we don't have direct access 179 00:09:39.919 --> 00:09:43.039 to the FED window today. That could change over time 180 00:09:43.120 --> 00:09:48.279 if we were to either expand the license footprint and 181 00:09:48.320 --> 00:09:51.559 what we could do as a depository, But today we're 182 00:09:51.600 --> 00:09:55.240 not depository through the trust company license that we have. 183 00:09:55.799 --> 00:09:58.960 And then, for that matter, no other issue that I'm 184 00:09:58.960 --> 00:10:01.000 aware of in the industry as a direct access to 185 00:10:01.039 --> 00:10:02.919 the or other central bank. 186 00:10:04.200 --> 00:10:07.679 What's your plan for market penetration. There's obviously some established 187 00:10:07.720 --> 00:10:10.759 players in the market, and the stable coin wars, if 188 00:10:10.759 --> 00:10:12.679 you want to call it, that is heating up. But 189 00:10:12.799 --> 00:10:16.039 let's say into markets, let's ham in South America, what 190 00:10:16.159 --> 00:10:16.919 is plans there? 191 00:10:17.159 --> 00:10:18.000 What are your plans there? 192 00:10:18.039 --> 00:10:20.039 The answer is yes, we're going to penetrate the markets. 193 00:10:20.960 --> 00:10:24.159 One of the benefits of doing this from Ripple is 194 00:10:25.000 --> 00:10:28.799 a twelve year infrastructure of partnerships that they've built out 195 00:10:28.840 --> 00:10:33.159 really across the globe. There's a corresponding portfolio of licenses 196 00:10:33.240 --> 00:10:37.519 that we get to slipstream behind. In many cases where 197 00:10:37.519 --> 00:10:41.360 there's already a regulatory framework set in place in certain 198 00:10:41.360 --> 00:10:45.600 corridors where the legacy Ripple Payments business already as well established, 199 00:10:45.600 --> 00:10:49.240 it's mature and so there is a native demand already 200 00:10:49.320 --> 00:10:53.440 in those marketplaces. So not going into specifics, what we'll 201 00:10:53.480 --> 00:10:55.559 be launching is the issuer out of the US. We've 202 00:10:55.600 --> 00:10:58.480 got a very global mind frame in terms of how 203 00:10:58.480 --> 00:11:01.440 we're going to bring this to market, distributed both in 204 00:11:01.480 --> 00:11:05.399 concert with some of our existing partnerships, existing rails that 205 00:11:05.480 --> 00:11:09.000 we have our corridors on the payment side, or with 206 00:11:09.080 --> 00:11:11.639 exchanges that we work with for the payments, and also 207 00:11:11.639 --> 00:11:15.080 some new use cases frankly that have come to mind 208 00:11:15.279 --> 00:11:18.399 since we've been talking about it internally over the last 209 00:11:18.440 --> 00:11:21.639 six months and really educated our sales and client management 210 00:11:21.679 --> 00:11:25.039 teams or new use cases that are coming naturally as 211 00:11:25.120 --> 00:11:30.279 part of a conversation when those customers and partners and 212 00:11:30.360 --> 00:11:33.240 clients are engaged in a conversation where they say, hey, 213 00:11:33.440 --> 00:11:35.919 here's another opportunity or another use case that may have 214 00:11:36.000 --> 00:11:39.000 not existed in the past and would be perfect for 215 00:11:39.039 --> 00:11:41.879 a stable coin. And so I think the past isn't 216 00:11:41.919 --> 00:11:43.960 necessarily our future in terms of where we see stable 217 00:11:44.000 --> 00:11:45.440 coins being used. 218 00:11:45.919 --> 00:11:48.080 Now, some of the partners you mentioned, I know there 219 00:11:48.080 --> 00:11:50.480 were some exchange partners that were announced today. 220 00:11:50.720 --> 00:11:54.600 Tell us about those and how they'll be integrating our LUSD. 221 00:11:55.039 --> 00:11:58.159 Yeah, so today we announced a number of day one partners, 222 00:11:59.200 --> 00:12:03.600 some exchanges, you know, the bit Stamps, the Upholds of 223 00:12:03.639 --> 00:12:09.120 the World, Bullish, We announced some market makers B two 224 00:12:09.120 --> 00:12:13.840 C two, key Rock. We announced some on and off 225 00:12:13.960 --> 00:12:18.720 ramp partners as well, Moonpay being one of them. Trying 226 00:12:18.759 --> 00:12:20.559 to think it was in a release because we have 227 00:12:20.919 --> 00:12:24.639 another partners who are signed on that we haven't announced 228 00:12:24.679 --> 00:12:27.000 yet or in the process of coming over, and so 229 00:12:27.000 --> 00:12:29.600 that will evolve over time. When we do get regulatory 230 00:12:29.600 --> 00:12:33.960 approval and when we do actually launch, we'll announce other partnerships, 231 00:12:34.279 --> 00:12:38.080 and so it's really a broad and diverse approach to 232 00:12:38.279 --> 00:12:40.360 bringing it to market. Obviously, it has to be made 233 00:12:40.360 --> 00:12:43.000 available and that's where the exchanges come in. The market 234 00:12:43.039 --> 00:12:48.919 makers provide really requisite liquidity to the marketplace in many cases, 235 00:12:49.320 --> 00:12:52.440 and depending upon the application, someone like moonpay twenty two 236 00:12:52.480 --> 00:12:55.480 million wallets that exist out there, they provide a key 237 00:12:55.879 --> 00:13:00.159 piece of infrastructure or zero hash or others that help 238 00:13:00.679 --> 00:13:04.799 us connect with other ecosystem partners who might go that 239 00:13:04.879 --> 00:13:09.639 last mile, whether it's a payment rail, whether it's a 240 00:13:09.720 --> 00:13:12.559 you know, consumer application, et cetera. And again, all of 241 00:13:12.600 --> 00:13:16.320 our direct customer relationships are all institutional, but we do 242 00:13:16.399 --> 00:13:20.799 have partnerships that will help us get our USD you know, 243 00:13:20.879 --> 00:13:25.240 into more use cases. Frankly, we also, in addition to 244 00:13:25.320 --> 00:13:28.000 those third parties, as I referenced earlier, have a number 245 00:13:28.039 --> 00:13:29.960 of native use cases. I think it's one of those 246 00:13:30.440 --> 00:13:33.840 aspects that sets Ripple apart, isn't Issuer. So not only 247 00:13:33.879 --> 00:13:36.919 do we have the regulatory compliant footprint, the licensed approach 248 00:13:36.960 --> 00:13:38.879 that we're doing it with. Not only do we have 249 00:13:38.960 --> 00:13:42.480 the balance sheet and the brand recognition and the reputation 250 00:13:42.639 --> 00:13:46.159 for trust, but we also have these native use cases 251 00:13:46.240 --> 00:13:50.120 around custody. Through the medical acquisition that Ripple made a 252 00:13:50.200 --> 00:13:52.720 year and a half ago, there's some really interesting r 253 00:13:52.879 --> 00:13:58.159 WA tokenization opportunities with Ripple custody that we're excited about 254 00:13:58.720 --> 00:14:04.559 some opportunities within the pain business, which you've already spoken about, 255 00:14:04.559 --> 00:14:07.600 some opportunities with Ripple Impact and some of the pilanthropic 256 00:14:08.840 --> 00:14:12.320 X you know, opportunities that Ripple has has been promoting, 257 00:14:12.360 --> 00:14:15.000 and so quite excited to be doing it from this platform. 258 00:14:15.559 --> 00:14:18.679 So Jack, not to get ahead of ourselves. Obviously excited 259 00:14:18.679 --> 00:14:22.399 for our l USD once that's up and running and 260 00:14:22.440 --> 00:14:24.360 in the wild, is there going. 261 00:14:24.279 --> 00:14:29.320 To be an rl EU are Yeah, a common question 262 00:14:29.600 --> 00:14:31.240 if I were to close my eyes and open them, 263 00:14:31.559 --> 00:14:33.799 you know, three years from now. I think the answer 264 00:14:33.840 --> 00:14:35.399 to that is yes, And I think there will be 265 00:14:35.440 --> 00:14:39.159 other FIAT backed stable coins that have a role to play, 266 00:14:40.000 --> 00:14:43.559 and certainly Ripple's global footprint supports that. And there's an 267 00:14:43.559 --> 00:14:48.120 opportunity to leverage infrastructure, leverage, licenses, leverage partners we have 268 00:14:48.200 --> 00:14:50.879 in different jurisdictions to bring that to Baron. We've already 269 00:14:50.919 --> 00:14:54.639 been speaking to some of the of our partners around that. 270 00:14:54.799 --> 00:14:58.080 I think today the fact that I don't know if 271 00:14:58.080 --> 00:15:00.440 it's ninety five percent or something like that of demand 272 00:15:00.480 --> 00:15:03.279 for sable coins is for US dollar back stable coins, yeah, 273 00:15:03.320 --> 00:15:05.559 and so we want to address that market need first, 274 00:15:05.879 --> 00:15:08.759 and I would say we're certainly watching and ready and 275 00:15:08.840 --> 00:15:14.240 poised to capitalize on the growth where we see inklings 276 00:15:14.320 --> 00:15:17.279 or early signals growth, and I think that will happen. 277 00:15:17.559 --> 00:15:20.159 I'm very bullish, as you might suspect on the broader 278 00:15:20.759 --> 00:15:24.399 growth story for stable coins generally speaking, and I don't 279 00:15:24.440 --> 00:15:26.639 think in the future they're all going to be a 280 00:15:26.720 --> 00:15:29.159 US dollar back. So it's just a little premature outside 281 00:15:29.200 --> 00:15:31.360 the US dollar back today and we've got job number 282 00:15:31.360 --> 00:15:34.279 one is to get our all usd launched and growing, 283 00:15:34.440 --> 00:15:38.159 and we'll focus on other featback stable coins after that. 284 00:15:38.480 --> 00:15:38.720 Sure. 285 00:15:38.759 --> 00:15:41.679 Well, yeah, to your point, I mean US dollar will 286 00:15:41.759 --> 00:15:45.879 reserve currency. Everybody wants a dollar, and especially in countries 287 00:15:45.919 --> 00:15:49.519 where they're handling hyperinflation and dealing with all that craziness, 288 00:15:49.960 --> 00:15:52.600 they want US dollars. So it would be awesome to 289 00:15:52.639 --> 00:15:56.080 have a stable coin backed by the US dollar. Do 290 00:15:56.120 --> 00:15:59.720 you feel that's the killer use case of blockchain right now? 291 00:16:00.200 --> 00:16:02.960 Is going to be more, but stable coins are the 292 00:16:03.519 --> 00:16:05.000 seems to be the game right Well, it's. 293 00:16:04.919 --> 00:16:07.399 In my title, so I've got to be stable coin first. 294 00:16:07.440 --> 00:16:10.519 But I think the other big exciting theme, and it's 295 00:16:10.639 --> 00:16:12.559 resonant here in a lot of the conversations and the 296 00:16:12.559 --> 00:16:17.320 panel discussions that SWELL is tokenization and real world assets, 297 00:16:17.320 --> 00:16:18.879 and I think the two go hand in hand, even 298 00:16:18.879 --> 00:16:21.440 if you think about stable coins being an on and 299 00:16:21.480 --> 00:16:26.039 off ramp into investing in our w A and tokenization, 300 00:16:26.120 --> 00:16:29.039 and so a lot of the issuers and exchanges and 301 00:16:30.000 --> 00:16:34.399 infrastructure providers for tokenization and r w A that we've 302 00:16:34.440 --> 00:16:38.679 been working with we're having corresponding conversations around stable coins 303 00:16:38.679 --> 00:16:42.759 as well. So I think those two thematically are probably 304 00:16:42.799 --> 00:16:46.039 the most exciting, and both I think lend themselves to 305 00:16:46.759 --> 00:16:53.320 the the use cases that really I think help open 306 00:16:53.399 --> 00:16:56.440 people's eyes to the benefits of crypto and digital assets 307 00:16:57.080 --> 00:16:58.960 who may have been more skeptical or who can look 308 00:16:58.960 --> 00:17:00.840 at a bitcoin or excerpt pay your eth and say 309 00:17:00.840 --> 00:17:05.079 it's just a speculative investment. Here are examples where particularly 310 00:17:05.119 --> 00:17:08.000 stable coin is, given the kind of bridge they sit between, 311 00:17:08.920 --> 00:17:11.200 you know, trad fying and web three, how it can 312 00:17:11.240 --> 00:17:13.640 make sense to people, particularly when you get into financial 313 00:17:13.720 --> 00:17:18.359 inclusion and remittances and you know there are stores of value. 314 00:17:18.440 --> 00:17:20.480 So I think I think it's a really exciting time 315 00:17:20.480 --> 00:17:22.559 for stables and tokenization. 316 00:17:23.039 --> 00:17:23.680 Yeah, for sure. 317 00:17:23.759 --> 00:17:27.880 So you envisioning that in the future, I'm not necessarily 318 00:17:27.920 --> 00:17:31.279 going to go from fiat to buying a tokenized version 319 00:17:31.319 --> 00:17:34.200 of a hotel in Miami Beach or something, but to 320 00:17:34.359 --> 00:17:35.440 a stable coin. 321 00:17:36.960 --> 00:17:37.680 Or have that. 322 00:17:38.000 --> 00:17:40.759 Well, it's having that option. Thinking about stables, you know 323 00:17:40.759 --> 00:17:43.000 they operate twenty four to seven. So if you decide 324 00:17:43.039 --> 00:17:44.480 to do it, you get woued at dinner on a 325 00:17:44.519 --> 00:17:46.599 Friday night and you want to buy a tokenized interest 326 00:17:46.640 --> 00:17:49.799 in the Faina hotel, That's tough to do when the 327 00:17:49.799 --> 00:17:53.720 banks are closed, yeah, Whereas if you have access to 328 00:17:53.799 --> 00:17:56.240 a stable coin, you know you can do that immediately 329 00:17:56.279 --> 00:17:59.359 and transfer that stable coin. So, I mean there's that 330 00:17:59.559 --> 00:18:03.319 level of support. There's also just the reality of once 331 00:18:03.359 --> 00:18:09.640 you are actively investing in the space and tokenizer digital assets, 332 00:18:10.359 --> 00:18:16.519 keeping your fiat type reserves or assets in a stable 333 00:18:16.519 --> 00:18:18.920 coin allows you to save the on and off of 334 00:18:18.960 --> 00:18:21.160 going from stable to fiat and fiat back to stable 335 00:18:21.200 --> 00:18:23.400 to just keep it in stable, right, and then you 336 00:18:23.559 --> 00:18:27.119 are much more poised and ready to move that around 337 00:18:27.119 --> 00:18:30.519 to transfer it in its courts of ripples belief around 338 00:18:30.640 --> 00:18:33.759 you know, the exchange of value, exchange of wealth, right, 339 00:18:33.839 --> 00:18:36.759 and so being able to do that through a digital asset, 340 00:18:36.799 --> 00:18:39.519 whether it's XRP or to the stable coin use case 341 00:18:39.599 --> 00:18:43.039 rl USD. I think both work very well in achieving 342 00:18:43.079 --> 00:18:43.559 that mission. 343 00:18:45.759 --> 00:18:49.559 I don't know, let me rephrase this actually will ripple 344 00:18:49.759 --> 00:18:52.640 or do you have any partners who may be interested 345 00:18:52.640 --> 00:18:55.359 in offering yield with the stable coin? I know coin 346 00:18:55.400 --> 00:18:57.839 based offers offers some sort of yield with us DC. 347 00:18:58.079 --> 00:19:00.640 Yeah, they do it through a rewards program, and I 348 00:19:00.680 --> 00:19:03.400 think I don't know exactly how that works. We've got 349 00:19:03.400 --> 00:19:05.640 a number of partners who run their own business, I 350 00:19:05.640 --> 00:19:10.000 mean in our worldview. If you will, you know the 351 00:19:10.200 --> 00:19:12.599 and this may evolve. It came up in a question 352 00:19:13.039 --> 00:19:17.599 earlier today on the stable coin panel. There's certainly there 353 00:19:17.599 --> 00:19:20.319 have been other instances where stable coins with a yield 354 00:19:20.359 --> 00:19:23.160 component have been issued outside the US or all sorts 355 00:19:23.200 --> 00:19:27.200 of security laws that exist today that would govern how 356 00:19:27.240 --> 00:19:29.960 you would bring a interest bearing stable coin to market, 357 00:19:30.000 --> 00:19:32.519 and that's a well proven path. There aren't a lot 358 00:19:32.519 --> 00:19:34.519 of precedents around it. But I think the guidelines are 359 00:19:34.559 --> 00:19:37.400 pretty clear from the SEC and others in terms of 360 00:19:38.079 --> 00:19:41.119 what that would look like. And so when I again 361 00:19:41.160 --> 00:19:42.759 close my eyes and open them three years from now, 362 00:19:42.759 --> 00:19:45.680 I think you will see more yield bearing stable coins 363 00:19:45.680 --> 00:19:48.119 and then maybe in different jurisdictions or here, but they'd 364 00:19:48.119 --> 00:19:51.240 be registered as a security. I think in the current 365 00:19:51.319 --> 00:19:54.200 form to your question, there are other partners who have 366 00:19:54.359 --> 00:19:58.839 similar sort of rewards programs or other incentives for folks 367 00:19:58.920 --> 00:20:01.720 to hold it. Our stable coin is not a yield 368 00:20:01.759 --> 00:20:05.359 sharing a stable coin where you know, the end users 369 00:20:05.400 --> 00:20:08.000 of or holders the stable coin where participate in the yield. 370 00:20:08.200 --> 00:20:11.279 Sure, So I guess it just depends on who creates 371 00:20:11.319 --> 00:20:14.400 whatever product, whatever third party, and if they want to offer. 372 00:20:14.200 --> 00:20:16.480 It, that's right, and that would be up to them, 373 00:20:16.480 --> 00:20:20.160 and that would be you know, scrutinized as as appropriate 374 00:20:20.200 --> 00:20:24.079 by whatever product they have, whatever regulatory framework they operate 375 00:20:24.119 --> 00:20:26.559 in or don't, and whatever region they're in. So mark 376 00:20:26.559 --> 00:20:29.079 for me to answer that part of the question for sure. 377 00:20:29.920 --> 00:20:33.319 Final item here, Over the years, we've spoken about grown 378 00:20:33.359 --> 00:20:34.799 adoption institutions. 379 00:20:35.000 --> 00:20:36.920 You know, the herd was coming. They were saying, Now 380 00:20:36.920 --> 00:20:37.839 the herd is here. 381 00:20:37.839 --> 00:20:40.880 Still here, the thundering herd, right, yeah. 382 00:20:40.519 --> 00:20:42.640 And I mean, are you blown away? 383 00:20:42.720 --> 00:20:45.200 But by all the things that happened this year ETFs, 384 00:20:45.240 --> 00:20:50.720 all the Wall Street tokenization is black rocks, custoding reserves 385 00:20:50.759 --> 00:20:52.920 for certain companies and so forth, what are your thoughts 386 00:20:52.920 --> 00:20:53.319 on all that. 387 00:20:53.440 --> 00:20:55.960 Yeah, it can't come soon enough for big enough, and 388 00:20:56.039 --> 00:20:59.720 I think it is. You know, we've talked over the years, 389 00:20:59.720 --> 00:21:02.160 Tony about evolution, not revolution, and so I think what 390 00:21:02.200 --> 00:21:04.119 we've seen this year is consistent. I think this has 391 00:21:04.119 --> 00:21:07.400 been a big year for digital assets writ large, and 392 00:21:07.400 --> 00:21:10.039 you touched upon a few, and I think Blackrock has 393 00:21:10.079 --> 00:21:14.119 been very credentializing for traditional finance to see what they've 394 00:21:14.119 --> 00:21:16.480 done in others and the Wisdom Trees of the World 395 00:21:16.119 --> 00:21:19.880 and Fidelity and other big names Aberdeen that are active 396 00:21:19.880 --> 00:21:22.240 in the space, and I think they will continue to 397 00:21:22.279 --> 00:21:24.920 push the envelope. The volume isn't what we all expect 398 00:21:24.960 --> 00:21:27.319 it to be, but you have to start somewhere, and 399 00:21:27.359 --> 00:21:30.319 I think this crawl walk run phenomenon will play out. 400 00:21:30.440 --> 00:21:32.400 I think a year from now we'll see even more 401 00:21:32.599 --> 00:21:36.799