ROLLUP: Coinbase Ships | JPMorgan Onchain | Solana Firedancer | Aave Civil War | DTCC Tokenizes

Summary

Bankless Weekly Rollup: The Ultimate Guide to Crypto Finance — December 19, 2025

Main Theme / Purpose This episode of Bankless delivers a comprehensive weekly rollup of the latest and most important developments across DeFi, crypto, and Web3. The main focus is on major product launches from Coinbase (aiming to become a financial super app), JPMorgan’s movement onchain, Solana’s Firedancer upgrade, the Aave DAO vs. Labs “civil war,” and the DTCC’s landmark step toward asset tokenization. The hosts, Ryan and David, also share market insights, discuss token/equity misalignment trends, and comment on culture and regulatory issues.

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1. Market Recap & Macro Takes

• Bitcoin and Ether Performance
  • Bitcoin down 4% on the week, down 17% on the year; Ether down 10% on the week, down 27% on the year.
  • Solana suffered more, down 45% in 2025.
• Market Sentiment
  • “Did this feel like a 10% down on the week?” — Ryan [02:50]
  • Total crypto market cap now below $3T — started the year at $3.8T.
• 2026 Outlooks
  • David: “Slow grind up.” [05:06]
  • Ryan: Barclays predicts a down year for 2026 due to weaker retail, fading speculation, and constrained exchange revenues [05:32].
  • David references Joey Krug’s interview, forecasting big tech IPOs (SpaceX, OpenAI, Anthropic) as “liquidity sucks” — less capital for crypto.

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2. Legendary Investors on Fiat & Wealth Erosion

• Warren Buffett on Fiat
  • “But the natural course of government is to make the currency worth less over time and that’s got important consequences.” — Buffett clip [08:18]
  • Ryan and David joke Buffett “sounds like a Bitcoiner” [08:32].
• Ron Baron on Inflation
  • "Prices double every ten to twelve years, and your savings are cut in half every fifteen years...this system is basically designed to punish you if you hold fiat.” — Paraphrased by Ryan [10:30]
• Why Holding Cash Is Hard
  • “I don’t have any cash. What are you talking about?” — David [10:18]
  • “The millionaire is actually ten million dollars…” — David [12:14]

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3. Major Bankless Announcements

• ICO Watch (David’s Project) [13:00–15:34]
  • Aggregates all announced and upcoming ICOs.
  • Details: Registration/sale dates, tokenomics, sale mechanisms, team/investors, direct interviews.
  • “We are listing every single ICO that we do not find a red flag for...” — David [14:23]
  • Disclaimer: Not all projects are vetted.
• The DeFi Report Podcast (Ryan’s Project) [15:34–16:48]
  • Weekly podcast with Mike from The DeFi Report — following a seasoned investor through crypto cycles.
  • Only 20% of Mike’s portfolio is in crypto (80% cash), prepping to deploy in a bear market.

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4. Coinbase “System Update” — Transforming into the Financial Super App [17:00–37:43]

Major Product Announcements

• Stock Trading in-App

  • U.S. users can now trade equities (Nvidia, Apple, Tesla, etc.) alongside crypto.
  • Not tokenized stocks but actual equities via new brokerage arm “Coinbase Capital Markets”, regulated by FINRA/SIPC; Apex Clearing handles custody. [22:19–22:52]
  • “Now you can trade stocks and a huge selection of crypto all in one place.” — David [21:58]

• Equity Perpetuals

  • 24/7 trading; up to 20x leverage, rolling out soon (for non-US users).
  • “It’s a perps are a crypto product ... makes more sense for retail than options” — Ryan [25:55]

• Prediction Markets via Kalshi

  • Enables betting on outcomes (politics, sports, etc.) through Kalshi integration, targeting feature parity with Robinhood but with regulatory compliance.

• DeFi/Token Integrations

  • Direct access to Solana tokens (via Jupiter), in addition to Base & Arbitrum assets.

• Token Sale Platform (highlight: the Monad ICO)

  • Over $260M in requests from 85,000 verified users.

• One-Stop Payments

  • “Pay Tab”: Send USDC via phone number, email, or wallet address—even to people without preexisting Coinbase accounts. [31:08]

• Loans & Credit

  • Borrow up to $5M against Bitcoin, $1M against ETH as collateral (with Morpho).

• AI Advisor & Creator Platform

  • “Coinbase Advisor”: AI-powered, helps manage portfolios and even suggests prediction market bets.
  • “Base app”: Social media, creator-focused, posts/content as tokens — Farcaster/Zora style.

• Position in Broader Fintech Landscape

  • “If I’m a brokerage like Fidelity...I’m shaking in my boots…” — Ryan [34:04]
  • Robinhood and Coinbase are neck-and-neck, targeting Millennials and Gen Z for super-app dominance.

• Fees and Accessibility

  • Robinhood: zero fees on stocks, high crypto fees; Coinbase: “not low” crypto fees, unclear stock fee parity.
  • OG “super app” is still Ethereum itself — on-chain swaps for tokenized equities (Ondo) with tight spreads. [36:04–36:56]

“All these companies are launching super apps; don’t forget about the OG: Ethereum.” — David [36:44]

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5. Aave “Civil War” — Token vs. Equity Tensions [37:43–44:26]

• The Dispute

  • Aave Labs swapped Paraswap for CowSwap as DEX aggregator in the frontend—fees now flow to Labs, not DAO.
  • “Stealth privatization” claim: DAO and community feel revenue and brand built by DAO should accrue to token holders, not just equity.
  • Estimate: $10-15M/year in lost DAO revenue.

• Industry-Wide Pattern

  • Labs/entities sell IP & tech w/o tokenholders benefiting—recent examples: Circle acquiring Interop Labs (Axelar), Coinbase buying NFT platform Tensor; tokens left behind.
  • “How can you say invest in our crypto assets? You might get rugged.” — Ryan [40:49]

• Cowswap Example

  • “Cowswap is crushing it in terms of volume, but the token’s only worth $100M...” — Ryan paraphrasing Martin [41:08]

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Uniswap's "Unification" Proposal [41:42–43:34]

• Proposed Solution
  • New legal entity (Wyoming DAO LLC “Duna”) for the DAO.
  • Uniswap Labs becomes main operator via service agreement; quarterly growth budget in UNI paid out.
  • Aligns Labs’ incentives with token holders.
  • Not perfect, but a big step—model for other DAOs?
  • “Probably now that we have the regulatory green light to do things, the first thing we need to do is fix investor rights and investor protections.” — David [44:26]

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6. Solana Breakpoint Announcements [47:32–50:47]

• Firedancer Launches

  • “Firedancer is now on mainnet... 660K to 1M+ TPS in tests.” — David.
  • Incremental mainnet rollout, written from scratch in C by Jump Crypto.
  • “Pretty big milestone to have a second client from an independent dev shop.” — Ryan.

• Phantom + Kalshi Prediction Markets

  • Solana tokens for prediction market positions; fully tokenized and composable in Solana DeFi.

• Visa Settlements

  • Visa offers USDC settlement for US banks, using Solana as rails.

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7. TradFi Onchain: DTCC, JPMorgan, and the "Suitcoin" Era [52:42–57:27]

• DTCC (US securities settlement giant)

  • SEC greenlights a 3-year tokenization pilot for assets on qualifying L1/L2s (resilience/uptime requirements).
  • Demo: Apple shares settled via DTCC and transferred to Ethereum; USDC as settlement layer.

• DTCC + Canton Network

  • First pilot: using the private/permissioned Canton blockchain for US Treasuries.
  • “There’s actually a Canton Network token... 2.7B, where did that dime come from?” — David [56:28]
  • CEO interview scheduled for January.

• JPMorgan

  • Launches first ever tokenized money market fund on Ethereum mainnet (world’s “greatest super app”).
  • Token ticker: MONY

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8. Regulatory & Legal News

• Do Kwon Sentenced

  • 15 years for “fraud of an epic, generational scale.” [58:02]
  • US prison first, then South Korea—could face up to 40 more years there.

• Crypto Regulation & Partisanship

  • NYT alleges Trump SEC has withdrawn 60% of Biden-era crypto cases, implying industry pressure.
  • “Crypto’s moved once again into partisan territory.” — Ryan [61:23]

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9. Culture Corner

• Upcoming Netflix Rom-Com: "One Attempt Remaining"
  • Jennifer Gardner leads a story about divorced couple who won Bitcoin in a drunken cruise... but lost the seed phrase, with only one login attempt left for $35M. [61:57]
  • “I want to watch this with an eye towards how accurate it is...” — Ryan
  • “Prediction: you’re going to be disappointed.” — David [62:51]

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Memorable Quotes & Timestamps

• “Did we just get tokenized stocks yet? Hmmm. Kind of. Hold your breath, we’ll let you know.” — Ryan [00:20]
• “Slow grind up—that’s my outlook for 2026.” — David [05:06]
• “If you zoom out, ETH is looking pretty good right now ... dark times.” — Ryan [03:32]
• “That’s what a Bitcoiner says!” — David on Warren Buffett’s currency debasement quote [08:34]
• “We are listing every single ICO that we do not find a red flag for...” — David [14:23]
• “Don’t forget about the OG: Ethereum.” — David [36:44]
• “Stealth privatization” — Ryan on Aave Labs vs DAO [37:53]
• “How can you say invest in our crypto assets? You might get rugged.” — Ryan [40:49]
• “First thing we need to do is fix investor rights and investor protections. Let’s go do it.” — David [44:26]

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Conclusion

This episode was a whirlwind tour of both crypto-native and TradFi evolution, emphasizing the convergence of traditional finance with DeFi infrastructure, the struggles of aligning tokens with equity value capture, the race for super-app status, and the continuing push for regulatory and institutional legitimacy. The hosts keep the tone conversational, lively, and occasionally irreverent—always putting the community and listener first.

Happy holidays from Bankless — see you on the frontier.

Transcript

[David]

Foreign.

[Ryan]

Station is the third week of december last week before the holidays time for the bankless weekly roll up we've got some coinbase updates december seventeenth that was a date on which they were supposed to give an announcement and they definitely gave an announcement they had their system update announced a whole bunch of things we're going to cover all of them and my big question going into this was did we just get tokenized stocks yet hmm kind of hold your.

[David]

Breath we'll let you know but not just coinbase also bankless that's us shipped two new products this week that had the entire industry on the edge of their seats what bankless ship we're going to talk about the cool new things that we introduced into the market and we're also going to talk about the aave equity versus token misalignment conversation i was wondering if that was going to be a thing i was wondering why how come aave just escaped all of the token equity misalignment conversations turns out they didn't what triggered it how's it.

[Ryan]

Going to get resolved also solana they had their breakpoint conference and they announced a number of things including solana's fire dancer upgrade so we'll talk about that jp morgan the biggest bank in the us they finally deployed something directly on ethereum l one i think it's a big deal we'll talk about that as well but before we do got to shout out our friends and sponsors over at m zero tell us about m.

[David]

Zero david stablecoins are the killer app of crypto you know it i know it m zero knows it but right now the current system of stablecoins just fragmented just digital silos digital islands of liquidity that do not talk to each other m zero was the first to come up with a very simple solution stablecoins that brands can wrap and customize while maintaining fungibility with the underlying assets that means there's one large pool of liquidity without conformity which is what makes the m zero architecture unique m zero was our partner over at the bankless summit ryan i know you watched luca's talk at the summit it was all about money it was very cool highly recommended for anyone who wants to get that money philosophy itch scratched which is where this podcast started uh if you want to learn more about m zero bankless cc slash m zero m zero.

[Ryan]

Is making me want to launch a bankless stablecoin david i don't know what we do with it but i don't know they make it so easy i feel like we should at some point.

[David]

It'S what the market wants well what.

[Ryan]

Does the market want right now what does the market want tell us what.

[David]

Are the bitcoin the market wants specifically eighty six thousand four hundred dollars bitcoin which happens to be down percent down four percent that's part of the market that's not what i want that's not what you well other people disagree with you ryan down four percent on the week but down seventeen percent on the year bitcoin started the year a smidge above one hundred thousand dollars not not exactly the year exactly three hundred sixty five days ago so december eighteenth twenty twenty four eth down ten percent on the week to two thousand eight hundred fifty dollars down twenty six percent ten.

[Ryan]

Percent on the week did this feel like a ten percent down on the.

[David]

Week yeah i don't know where that came from i do know that prices both bitcoin and eth prices are just jumping all over the over the remember the barding that we talked about all of last week more the barding has continued more barding left and right don't like it don't like it at all down twenty six percent on the year e started the year at three thousand six hundred dollars we are not there anymore no it's crazy that we got an all time high in ether this year because like that was does not.

[Ryan]

Feel like that right now few days.

[David]

Of celebration before just returning just to just not awesomeness do you know though.

[Ryan]

If you zoom out if you look.

[David]

At oh yeah if you zoom out if you zoom out though how about.

[Ryan]

This how about this if you compare that if the price is in april of twenty twenty five eth is looking pretty good right now what was that like fourteen hundred seventeen hundred the very.

[David]

Bottom of the trump tariff scare if we if we pick the bottom eth.

[Ryan]

Is looking dark times dark times yeah some benchmarks you said it right so seventeen percent for bitcoin down on the year ether was down twenty seven percent solana was down forty five percent so it could be worse for bitcoin and ether there's always solana why why did.

[David]

We decide i shouldn't say that we.

[Ryan]

Got some bullish news on solana on the week fire dancer so maybe it's just a price thing not a fundamentals.

[David]

Thing you know what else this ad ryan yeah what the total crypto market cap oh starts with a two i.

[Ryan]

Must miss that what starts with a.

[David]

Two two point nine eight eight trillion dollars it can't be yep not great.

[Ryan]

We'Re below three again yeah started started.

[David]

The year at three point eight trillion we are now at two point nine nine trillion dollars well okay what's your.

[Ryan]

Take on twenty twenty six now we're at the end of twenty twenty five it's a down year let's call it it's been a down year for crypto yeah twenty twenty six a little bit though only a what are you talking about a little bit we just numbers sixteen seventeen percent for bitcoin twenty seven percent for eth that's a down year.

[David]

Yeah that is a down year i'm not i'm not disputing that it's just like only a little bit like down twenty six percent for an asset that can also go up hundreds of percent like yeah i'll take that okay so.

[Ryan]

That'S rose colored i suppose what's your outlook on twenty twenty six then slow grind up slow grind up so you.

[David]

I feel like that'll be my outlook as a default slow grind up so.

[Ryan]

That means up though at the end of next year at the end of twenty twenty six you're predicting an up.

[David]

Year slow grind up that's right okay.

[Ryan]

Barclays is not with you on that prediction okay the top analysts that's just.

[David]

The that's the basketball arena that the knicks play at in brooklyn i don't know i don't know what the hell they know oh i don't know what.

[Ryan]

They know about crypto though either to be honest this is just a report that they published and they see that twenty twenty six will be a down year for crypto why do you ask they cite weaker retail participation they say fading speculative activity and they say constrained revenue growth for retail exchanges like coinbase they basically saying that while tokenization seems like a big deal that's not going to affect prices next year in the short to medium term and they say there's some silver lining maybe the clarity act comes forward but even if that legislation passes it'll take a while for that to bake into crypto prices that's the barclays take i think that's pretty.

[David]

Fair that also sounds pretty aligned with the take that we got from joey krug who just interviewed where he was like the interesting big things on the horizon for twenty twenty six is like the spacex ico ipo ico yeah i wish i wish it was ico or the the openai or anthropic ipos and those are just going to be liquidity sucks and there's not much there's not much attention to be gone in crypto but that also means that he also continued saying well that's kind of why he's bullish on buying in twenty twenty six yeah really good interview that comes.

[Ryan]

Out next week yeah i think so next week or the week after we got your holidays covered guys so we're going to keep publishing podcasts during the.

[David]

Christmas season for sure as if bake this would ever stop there's a bunch of stuff that has made me question things but i have never questioned getting three episodes out in a week not.

[Ryan]

A bad place we're working for you guys every day david do you remember that one time warren buffett called bitcoin rat poison squared do i remember that was seven years ago oh my god seriously that was twenty eighteen it seems like just yesterday well it's kind of interesting because i saw this clip from warren buffett and i'm going to play it and he talks about fiat and i sort of get the impression that maybe fiat is the rat size poison squared maybe he didn't say those words but let's play what he did say.

[David]

I mean people can study economics and you can have all kinds of arrangements but in the end if you've got people that control the currency you can you can issue paper money and you will or you can engage in clipping.

[Ryan]

Currencies like they used to do centuries ago or there will always be people.

[David]

It'S the nature of their job i'm not singling them out as particularly evil or anything like that but the natural.

[Ryan]

Course of government is to make the.

[David]

Currency worth less over time and that's got important consequences and it's very hard to build chucks and balances into the system to keep that from happening does.

[Ryan]

That sound like a crypto advocate he.

[David]

Sounds like a bitcoiner dude that's what a bitcoiner says i'm not going to lie when he first started talking i was like why is ryan playing a clip of rfk junior.

[Ryan]

Buffett'S ninety five he's gotten a little raspy into his nineties but i mean still obviously an incredible investor for his ten years just has never come around to non sovereign monies like gold or like bitcoin or let alone ethereum but he has all of the logic there look it took.

[David]

Took warren buffett ninety five years to come around to what we knew a.

[Ryan]

Decade ago try to try to keep up buffett keep up buffett this was actually a clip that caught my eye and said berkshire is moving that's warren buffett's company three hundred forty eight billion into the japanese yen and i was like wait what that is not true if you saw that on twitter or wherever buffett is not deploying three hundred fifty billion into the japanese yen he does have however about three hundred eighty billion in treasuries and dollar based assets so on cash on the berkshire hathaway balance sheet right now so that positions him in about a thirty percent cash position at this point in time always good to have cash you got to have that spare dry powder right for buying the dips and buffett has seen his share of dips and he's done his share of buying throughout the decades but this is up from other positions where he's had like fifteen percent twenty percent now he's up to thirty percent so he's fiat bearish dollar bearish but he still likes to have that cash reserve just in case some of the assets he does like go down yeah pretty sensible i'm not sure that you.

[David]

Play you play it like that too david i don't have any cash what are you talking about why would i.

[Ryan]

Be you're fully deployed all the time.

[David]

I'M always every time i've tried to hold cash i'm like i want to buy that thing do you know why.

[Ryan]

It'S so hard to hold cash this is another take from billionaire investor ron baron who summarizes it like this basically summarizes why you feel poor today most people feel poor it's because money kind of sucks as an instrument the dollar money loses this is the dollar four to five percent purchasing power per year that of course is inflation the economy grows at two percent annually that's roughly a seven percent combined erosion so what this means is that prices double every ten to twelve years prices double and your savings are cut in half every fifteen years and so this system is basically designed to punish you if you hold fiat that's why you can't store your wealth in fiat this is why you don't store a lot of your wealth in fiat and why it's painful to hold dollars over the long time horizon because they're just leaky they're just.

[David]

Leaking every year at least in twenty twenty five that we have a bunch of options to actually get real yield which we never had in twenty twenty one remember when the big discourse in twenty twenty one is like there is no yield to be found anywhere so you have to buy the aave rates at were like zero basically we were in zerp yeah the aave app is giving you like eight to nine percent yield on morpho's giving you six percent so at least you can kind of like like hold steady prices are still doubling while you're holding steady so like that's still phenomenon that's happening but at least to some degree there is a viable way for like you know end investors retail investors to actually get some amount of yield to keep up with.

[Ryan]

Things it's hard to keep up right but even from from an income side if price doubles every ten years like your salary if you're one hundred k salary you better be making two hundred k just to break even in ten years time i mean that's a pre big hill to climb yeah people always.

[David]

People talk about like becoming a millionaire these days like that's whole the meme like got to become a millionaire like but people were talking about becoming a millionaire in like the nineties where one million dollars is like ten million dollars so like the millionaire is actually ten million dollars which is just seems a little bit more difficult yeah i mean.

[Ryan]

For our kids they'll be looking for like you know one million dollars coming out of college or something salary tell us about these big bankless announcements you promised david you two okay we got.

[David]

We got two secret products i'm leading one ryan's leading the other so we're going to fight we're making this a rivalry okay what's your product the project the project that i really like it's called ico watch i'm making this with the the newsletter team and it's just an aggregation of all the information that an investor needs to be informed about icos there have just been a ton of token sales getting announced and we know that there are more coming down the pipe and so this will be updated as more token sales get online but it's just a page to go to get all the relevant information that you need as an investor to be informed about token sales like registration and sale dates so to make sure you don't miss the deadlines the valuation of the token being sold the raise target how much they're raising the sale mechanism are they doing a uniswap cca are doing a coinless sale a sonar sale what the lockup schedules are who the team is who the previous investors are any useful links that we found and and if we've done one an interview an interview with the team directly linked and so i did an interview with mike demaray from the rainbow rainbow wallet and also demaray that's how you say his last name that's his name yeah.

[Ryan]

I'Ve always been mispronouncing it yeah same.

[David]

And you can click the link and it'll take you straight to an interview that we did about the sale and about the investor rights and investor protections and so if you want to be an informed ico public sale participant if.

[Ryan]

You got any money still to invest.

[David]

There'S a button to get alerts for any incoming new icos and so and also if you're doing an ico at me on twitter so we can add your ico to the ico wait wait.

[Ryan]

You don't want just any ico you're only picking the cream of the crop right are you open to any any shitcoin ico out there i do kind.

[David]

Of expect the possibility of there being just like too many icos and then we'll have to start curating but right now we are listing every single ico that we do not find a red flag for and you will notice that there are is a disclaimer saying these projects are not vetted by bankless do your own research so we are listing icos that we cannot find red flags for is all right is our curation.

[Ryan]

Criteria now i'm putting under the gun tell me your favorite your favorite one that's coming out on this list ooh.

[David]

Pick your favorite oh there's a handful of here okay so i just pick one can't pick favorites here's why here's a reason why i like rainbow is because they have a proposed strategy for equity token alignment oh where the foundation owns a significant amount of the equity and the foundation is a fiduciary duty to token holders i appreciate that okay i like that we have a topic.

[Ryan]

About that coming up in the episode.

[David]

Yeah you can find out more about that in the interview i did with them i also like zama because they make you shield your stablecoins in order to participate so you actually have to use zama and the value of the zama project it's being used in their own public sale i think that's also noteworthy but i think there's a lot of innovation left so i'm going to reserve my favorite ico for the future icos that come down the pipe yeah.

[Ryan]

Keep in mind guys if you do one of these you could lose everything right like who knows right these could drop to zero as icos have in the past okay my product i guess is a podcast wait yeah yeah so it's mike from the defi report we've been doing these monthly bankless podcasts he's really great but he writes weekly reports and i was like well doing something weekly on bankless that'd be like a bit too much why don't we just do a tdr the defi report that's what tdr stands for separate podcasts and just cover like so i'm going to read his report every every wednesday i read these anyway and then we get on a podcast record it and basically it's an opportunity to follow an investor on his crypto journey and he invests very much in the different crypto cycles so he's got a take on where we are in the cycle right now he's you know like even i suppose different than buffett he's only got twenty percent in crypto and eighty percent in cash so he's really ramping up to deploy during the bear market yeah so he's very opinionated and it's just very interesting so you can catch that on the defi report feed there's a link in the show notes or i think.

[David]

Different podcast it is not the first it's called the defi report we did.

[Ryan]

One episode on the bankless feed that'll be the only one i think we do for the defi report all of those others will be published in the defi report spotify youtube go search go go find that all right david we got some other announcements coming up bigger maybe bigger announcements than the bankless announcements.

[David]

You just launched which is nothing's bigger.

[Ryan]

Than that coinbase product announcements they are trying to become the everything app and there's an aave civil war i want you to tell me about that too all this and more but before we get there we want to thank the sponsors that made this episode possible crypto.

[David]

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coinbase crypto backed loans on coinbase make assessing liquidity seamless for crypto hodlers powered by morpho coinbase crypto backed loans gives you direct access to on chain financing allowing you to take out loans at competitive rates using your crypto as collateral over one billion dollars in loans has been opened through coinbase to date on the coinbase app eligible users can borrow up to one million usdc using bitcoin or ethereum as collateral users can convert their usdc into fia to make down payments refinance debt or cover urgent expenses and more the benefits are numerous interest rates are variable typically between four percent and eight percent and respond to market conditions loans are approved in seconds without credit checks repayment schedules are variable meaning there are no fixed deadlines the kicker coinbase will not treat borrow transactions as taxable events manage loans directly in the coinbase app with ease it's currently available to us customers except new york and additional collateral types and increased loan limits are coming soon want to learn more click the link in the show notes or visit coinbase dot com borrow mantle has launched a global hackathon until the end of twenty twenty five the focus is on building the future of real world assets from now until december thirty first mantle is inviting developers founders and innovators around the world to design and launch new real world asset and defi products on mantle the reason to build here is simple mantle is not just another blockchain it is an ecosystem built for builders who want real distribution and real users projects on mantle have access to tap directly into bybit one of the largest exchanges globally giving teams exposure to more than seventy million verified user and potential listings through bybit launchpad and launch pool the mantle ecosystem is backed by a four billion dollars treasury that supports growth with grants liquidity and venture investment and all of it runs on a modular ethereum layer two stack that delivers high performance low fees and full evm compatibility the hackathon features one hundred fifty thousand dollars in prizes plus grants incubation and direct access to top vc's across six tracks including real world assets defi ai zk infrastructure and gaming if you're ready to build where real world finance meets on chain innovation join the mantle global hackathon at mantlenetwork io slash hackathon or click the link in the show notes for more information on december seventeenth coinbase hosted their system update event that is what they're calling their kind of like apple debut like here's all of our new products event system update kind of a it's nice because it's the coinbase system update so coinbase is getting a system update but they're also trying to update the system so they're kind of giving progress on that uh and so key some key things here goal is to become the number one financial service app in the world not crypto specific to finance generally and a lot of the announcements here at the system update event is definitely aligned with finance broadly rather than crypto specifically gary tan tweeted out coinbase just launched on instagram of robinhood a venmo and a mastercard today uh and so this was all the collection of all the different things that they announced this week perhaps the big one the first one the one that they led with stock trading so stocks are now available on coinbase stocks like nvidia apple amazon tesla all listed right in the coinbase app alongside crypto assets like bitcoin and ether and all the other crypto assets that you know this is rolling out to every coinbase user over the next few weeks so some people have this right now some people do not i opened up my coinbase app couldn't find it but i'm sure it'll be available to me shortly let's say actually take a look at what this looks like in the demo so let's see how this works i open up my coinbase app where i can now see a dedicated section for stocks on the trade tab i'm going to buy nvidia for this demo and after just a few taps i can buy nvidia using usdc where i'm also earning best in class rewards and the best part is that you only need one account so now you can trade stocks and a huge selection of crypto all in one place that's the theme.

[Ryan]

Right all in one place all in one place now they have the stocks so this is available not to everyone you said it's rolling out but it's only rolling out to the us as well so right only us users australia it's only us accounts it's kind of inverted right because i feel like europeans used to get everything sooner than americans but now we're getting tokenized actually these.

[David]

Aren'T tokenized stocks these are not tokenized stocks these are normal equities these are just normal equities in the same way that like robinhood provides them or you're any other brokerage has them maybe you're wondering how do they do that how does this work legally speaking so coinbase thanks for asking ryan coinbase has launched their own brokerage arm called coinbase capital markets if you find out more i was doing some some digging coinbase dot com ccm you open up a brokerage account within your coinbase log with your coinbase login to trade stocks and etf's and so you make a you sign onto their service agreement for coinbase capital.

[Ryan]

Markets that's how they're regulated to do this as a broker dealer yes us.

[David]

Broker dealer dealer finra member sipc member exact same kind of category of document that you would sign it like robinhood trob fidelity one small difference which i guess is useful is who actually holds the stocks in coinbase there is a third party company called apex clearing custody and settlement so coinbase runs the ui the account access and the order routing but apex clearing and custody holds the actual stocks slightly different than robinhood robinhood securities holds the custody and settlement while robinhood as we know it also runs the ui and order routing so differences like outsourcing versus vertical integration here this.

[Ryan]

Is a good move this is an expected move i think by coinbase i was very excited about it and hopeful that this is the direction that they're going it's really a catch up to where robinhood has always been i mean robinhood has started basically with equities i think they make a ton of their money on options and other more complicated but they do have spot market for equities so this is coinbase catching up i would still say though that robinhood is a step ahead particularly on the tokenized stock game right so remember they partnered with arbitrum and there are like hundreds of tokenized robinhood stocks right now on chain on arbitrum one there's about thirteen million in value so not a ton of value but but there is still a step ahead of coinbase on the tokenized stock game i would say and this is coinbase catching up a.

[David]

Little bit yeah and the chart that we're looking at on the dune dashboard is a nice up and to the right chart so only thirteen point four million dollars as you said but it's going up i actually was surprised by this it says nineteen hundred number of assets tokenized which is a pretty good number but i actually really haven't run into a robinhood tokenized stock in my on chain explorations and so i haven't really interfaced with it personally but you.

[Ryan]

Do use robinhood for just purchasing stocks.

[David]

Normal robinhood to do normal things yeah.

[Ryan]

Custodial stocks yeah that sort of thing correct now are you are you excited to have this on coinbase as well.

[David]

Yeah i want to know about the fees robinhood has the whole no fees for for their equities and then when you go and try and buy crypto in robinhood it's like extremely expensive the fees are terrible like don't don't buy crypto in robinhood the fees are too high and then you go to coinbase and like coinbase doesn't have low fees they're they're not low fees for crypto but they're way lower than robinhood's and i would expect the fees on the stocks to be kind of the same so like the fee parity the fee matching i would like to explore check that out a little bit yeah but.

[Ryan]

All in one place yeah that wasn't the only thing they rolled out they also rolled out equity perps what are.

[David]

These twenty four seven access to trade equity perps so we cannot do equity not yet i can't find it in my app but they say this rolling out soon twenty four seven access to perp's contract up to twenty x leverage which would also allow users outside the united states to gain continuous capital efficient exposure to us equities via a perp so interesting would also like to see that roll out and see what happens.

[Ryan]

I mean it's a perps are a crypto product right and now they're being applied to the equities world i would i still have some older you know non crypto brokerage accounts and they don't offer perps but i think it's a valuable product not that i go margin long on on many things or anything but it's really intuitive it's very useful to me it makes much more sense for the retail investor than something like an option right you just go two x nvidia or you know five x long apple or whatever and just hold that until you you get margin called.

[David]

Yeah until you get margin called yeah whenever i look at options i just get so overwhelmed it's like okay there's a strike price and there's a call like call price all this kind of stuff i'm just like i can't there's too many variables for you just let.

[Ryan]

Me gamble and it's simple let me.

[David]

Do twenty x and i'll hold it for a few days like i understand how to do that it is worth noting that there are future perps currently available in coinbase but like it's kind of wonky because if you hold it over the weekend they increase your margin requirement just because of regulations because over the weekend it's you have you have to require more margin because it's less liquid and so it demargins you or it deleverages you over the weekends and so that's kind of clunky it's like not hyper liquid or any other like purse platform where you can just simply hold a twenty x position and it's just uniform for as long as you want that's the thing i want i will see we will see if that's how it works in coinbase still i don't have access to it yet so i don't know this is something that coinbase is ahead of robinhood on robinhood promised perp equities has not yet shipped.

[Ryan]

It okay interesting what else we got.

[David]

Prediction markets directly through the coinbase app with kalshi in the back end and so you can you know bet on sports and anything else related to prediction markets directly through coinbase i would imagine it's the same model used by robinhood where coinbase takes probably the majority of the fees from kalshi but they are able to just like provide their customers with prediction market demand this is another.

[Ryan]

Catch up to robinhood i suppose because robinhood has been offering this and did you told me i think robinhood is actually planning to roll out their own prediction market as well so robinhood owns.

[David]

Their customers and so why don't they just build a prediction market themselves and so they rely on callchain rather than have callchain the back end which is what they're doing and so they kind they just use kalsheet to bootstrap their own demand for prediction markets but now they're just doing it themselves are you.

[Ryan]

Surprised that a crypto native company like coinbase picked kalshi rather than polymarket which.

[David]

Is more crypto native no because polymarket is to tether as kalshi is to usdc so polymarket is like kind of the offshore less regulated entity kalshi operates there it's getting there it's getting there license agreement yeah yes so it should have feature parity or regulation parity maybe i should say but the call she is currently their event contracts are compliant with the cftc and so that is what gives coinbase a regulatory compliance to be able to do this again polymarket will do this in the future but that's they're not here today so that's why it's kalshi and i would imagine like why would why to your point why would coinbase pick kalshi over polymarket in the future like i would expect them to just have both there at.

[Ryan]

The same time i think they're just going to aggregate all the prediction markets that they can and maybe i think.

[David]

The bigger question is does coinbase build their own prediction market yeah and they.

[Ryan]

Could but they're pretty busy i mean there's a lot of products that they're rolling out just now another big feature was the dex access to solana tokens so right now in the coinbase app of course any asset that's traded via base on airdrome is available to you and they just extended that this is kind of the defi mullet approach to all of the tokens on jupiter and the solana platform so any solana token you can now access inside of the coinbase app so should you choose to do that also some other things they didn't announce as net new but they kind of underlined just beat about yeah and yeah and reminded us that they're still there one of which was the token sale platform right yeah so they.

[David]

Talked about their monad ico and kind of gave some metrics just kind of to show the power of their sale platform so with a monad ico two hundred sixty million dollars in allocation requests from eighty five thousand unique accounts that they have kyc'd and verified so these aren't like on chain potential like civil account these are just ico people over seventy countries so use the success of the monad ico to talk about their ico platform and then there's a few other like marginal updates that are still kind of useful to illustrate coinbase's direction so they have the new direct deposit flow so anytime you have your direct deposit from your employer you can set aside some amount of that direct deposit to go straight into coinbase to automatically buy crypto now equities etf's with every paycheck that you make they talked about their loan program and so you can take out five million dollars of a loan against your bitcoin they announced their eth loan program so you can take a one million dollars line of credit out with ether and that uses morpho in the background that uses morpho on base and so there's a there's over a billion dollars of bitcoin on base using this program and so we'll now be able to see ether have a line of credit there there's an incoming pay tab and so if you have if you have a coinbase account and your friend has a coinbase account you can hit the pay tab to pay them through their phone number email or.

[Ryan]

Wallet actually actually i don't know if the friend needs a coinbase account this is something i need to go investigate but they said you can pay using crypto this would be usdc to anyone like with a phone number email or wallet address so wallet address obviously implies crypto but maybe just an email and a phone number is enough to kind of get them started they have to download an app and then they can.

[David]

Receive it yeah yeah yeah they also talked about their coinbase one card apparently users have received sixteen million dollars of bitcoin as a rewards from swiping their coinbase onecard which is a visa card i believe they also announced coinbase advisor so shout out lincoln murr he talked at the bankless summit lincoln murr debuted an ai powered advisor to help manage your financial life it can evaluate portfolio you can ask it questions it can ask you questions and prompt you it can prompt you ryan like imagine your chatgpt hey would you like to rebalance your portfolio go ahead and press this button and it can also include prediction market bets and so if you say hey you know what i'm really bullish on ai and you can say hey well if you're bullish on ai you can you can bet that agi is going to arrive by twenty thirty and you can take that prediction market position right now and it will prompt you in that chat window which scares me.

[Ryan]

A little bit doesn't support emotional counseling because i feel like a lot of the journey of crypto trading is a very emotional journey know english yeah they.

[David]

Also announced coinbase therapy for all the all the crypto for the bare market.

[Ryan]

Yeah they should also the the base app was mentioned too so brian armstrong comes out and he says that's our custodial offerings but we also have non custodial offerings including the base app and.

[David]

Jesse wait wait wait wait how many times did jesse talk about creators and funding creators and tokenizing content that's what.

[Ryan]

I was going to tell you was that the the whole bit was it's basically the base app right which wasn't beta and now it's available to everyone that was the news but this is very much a creator economy thing social media that's where gary tan you said to the instagram product this is the instagram type product which is all your posts all your things are tokenized it's very much a farcaster zora type feel that's the interesting part of the i guess it's like a on chain social type of play and that's a very specific implementation yes of what a non.

[David]

Custodial wallet is yes yes yeah it's also interesting that last week we talked about how farcast was like on chain social doesn't work we're pivoting to a wallet and then basically it's like we're going to make on chain social work.

[Ryan]

I want to see if they can make it work we'll see but i'm very bullish on all of these other coinbase products and what i would say is i think this is good for defi because it's defi mullet if i am a bank or if i am a brokerage like a fidelity or an e trade or whatever charles schwab or whatever or even if i'm a bank i'm shaking in my boots with this type of announcement between robinhood and coinbase which are kind of neck and neck here seems to me they are eating the demand for financial services the everything app demand for younger general generations right so like millennials and gen z that's their core demographic and this has got to be a shot across the bow because it does create like an everything app type experience now they're missing the bank piece you said robinhood just rolled.

[David]

Out like a banking robinhood banking yeah which is a white labeled service on top of a bank so when you sign up for robinhood banking you get a bank account with some other bank.

[Ryan]

Yeah but the full stack at i.

[David]

Did sign up for robinhood banking and they gave me a robinhood checkbook dude.

[Ryan]

Oh wow that's so weird to see yeah are you ever gonna use that.

[David]

Puppy well i have a check for people who are paying attention i'm sorry i'm sorry i have a checkbook i have an eighty seven year old landlord it's the only way that he takes those texts that's how this goes yes that's right that's right yeah yeah yeah so ryan coinbase financial super app robinhood financial super app you know notable mention world also launched its super app has like crypto it's got a super app and encrypted chat features everyone's getting a super app you know what is also the super app the super iest of.

[Ryan]

All super apps what were you going to show me something crypto native oh.

[David]

Ethereum is a super app let's not forget it and so like all of these fin the fintech layer around ethereum and blockchains generally are all launching their super apps but we also forget ethereum itself is a super app you know you can go to cal swap okay so so type in five hundred thousand we're going to buy five hundred thousand of something of your money of dollars this is uscc five hundred thousand uscc and then i'd love to buy eth i already have enough of that i would like to diversify i would like to diversify using my ethereum super app that i have because i have a wallet type in g o o g.

[Ryan]

L o n this is a shitcoin.

[David]

You own sure google on google this is ondo tokenized google you can buy half a million dollars wow google how much what slippage is it telling you.

[Ryan]

You'Re gonna get zero point zero three.

[David]

Percent with a half a million dollars buy you could get a zero point zero three percent slippage on google and now you might be asking are you actually paying the fair execution price of what google's currently trading at in tradfi well i i compared it and it was like pretty damn close effectively the same so maybe look at the look.

[Ryan]

At the fees too it's just very.

[David]

Low fee a hundred dollars plus a network cost of a dollar and forty nine cents to buy a half a million dollars of google on your ethereum super app wow so while all these all these companies are launching super apps don't forget about the super the og.

[Ryan]

The og okay so remind us what ondo tokens are actually tokenized equities actually.

[David]

Tokenized equities that's right and we did.

[Ryan]

An entire episode with ondo they have a pretty slick mechanism where they're getting liquidity and they're keeping spreads tight and is a pretty seamless sort of representation of what a tokenized asset should be and you're saying that's already available on.

[David]

Ethereum today yeah yeah so i was i'm interested in a lot of the like google owns so much and they're only going to continue to grow more so i was like okay i would like to buy a little bit of google i went to robinhood looked at it and i was like okay i could buy it here it'd be easy but i could buy but the fees are cheaper on the ethereum layer one and it's where all the rest of my money is and so i did it through caswap it was nice that's.

[Ryan]

Cool let's talk so that was coinbase big announcement week i think lived up to the hype aave there's some aave drama on the week as well what's.

[David]

Going on here okay so aave is in the middle of a governance fight over who captures value from the aave brand does this story sound familiar ryan.

[Ryan]

Yeah it does it sounds a lot like uniswap yeah a lot like uniswap.

[David]

Which has solved a lot of its or is voting to solve some of its issues okay so what what sparked it so the aave labs front end replaced paraswap with cowswap on the official aave front end that just redirected the fees from the dao to the treasury so that when they had the paraswap on the front end those fees went to the dao the cow swap fees go to the to the to the labs the the equity ownership so this would cost dao the dao an estimated ten to fifteen million dollars a year in potential revenue for the dao so the core dispute on the dao side they call it stealth privatization the aave brand and the front end were built with the dao funding and governance legitimacy so the revenue tied to the brand should accrue to the aave token holders according to the dao the labs side of things is that the front end is a separate opinionated product maintained by labs which owns the trademark and the domain and also has labs risk around the trademark and domain monetizing it doesn't touch the protocol itself and so there's a pretty hard line between the dao here and which governs the protocol in on chain economics and the front end by labs which builds products on top of it including the main interface so of course the big question is that we've been asking for like almost almost years like five years now the brand the ip the fiduciary duty what rights do token holders have what ownership does token holders have do they have all those things or or does aave labs or the labs entity have all the good stuff and the dao has all of the less good stuff visually isn't really an aave only problem so also news this week was that circle acquired this company called interop labs which is the core team behind axelar which is an interop protocol so they acquired the entity and the team maybe it's an aqua hire maybe they also acquired their technology you know what they didn't acquire.

[Ryan]

Ryan probably all the tokens or the.

[David]

Tokens yeah why would they acquire the tokens they don't need the tokens they bought the ip and they bought the ip and all that stuff so all.

[Ryan]

The investors in the tokens feel pretty rugged at this point yeah well especially.

[David]

After the token dropped forty five percent and now now maybe you like look at circle and be like you assholes but also circle has fiduciary duty to share their shareholders to provide shareholder value.

[Ryan]

Which they have actual fiduciary duty actual.

[David]

Fiduciary duty yeah so if they don't have to pay for the token the token holders then why would they do that uh this also happened with coinbase a while ago coinbase bought the nft tensor platform they bought the team they bought the ip they bought the website all that good stuff did they buy the token no left the token out to dry which is just like a really bad look for the industry with its tokens like how can you say hey come invest in our crypto assets you might get rugged yeah i was.

[Ryan]

Actually exactly i was actually talking to martin about this and he was talking about we were just talking about cowswap yeah from cowswap he's one of the builders behind cowswap and he was just like cowswap is crushing it in terms of volume but the token's only worth a hundred million he's like it's far more volume the last forty five days than polymarket has in its entire lifetime and like why is the token only worth a hundred million dollars i'm like cowswap as a product is great the cow token like i don't know yeah.

[David]

What happens if coinbase buys cowswap exactly.

[Ryan]

Our products have pro some of our defi native crypto products have product market fit but our tokens are kind of shit from a fiduciary investor protection perspective and that's just the reality and it's work that we have to do they won't always be this way i don't believe that i think we are taking some steps to improve that including what uniswap has done recently with their or.

[David]

Is doing not done yet okay is.

[Ryan]

Doing this is hayden adams tell us about this just submitted the unification proposal for final governance vote so uniswap had uniswap labs and then they had the uniswap protocol and uniswap foundation and these were separate islands once again they had the fee switch is very reminiscent of what you just described with aave but they are in the process of trying to solve this what's their solution yeah.

[David]

Uniswap which really has been kind of the core example of equity token misalignment is now kind of leading the charge to fixing that hopefully they solve it in such a way that provides kind of a template to the rest of the industry again they're calling this the unification so here's what happens with the unification the dao gets an in real life legal entity a wyoma duna they're calling it a duni labs becomes a main operator to the duna via a service provider agreement and so the dao foundation the dao foundation kind of becomes the thing which employs contracts the labs entity to be the main service provider kind of cool they have a growth budget so the labs has a growth budget given to them by the duna twenty million dollars uni tokens a year as their as their budget to work on uniswap quarterly being paid out quarterly starting january first twenty twenty six per the forum post so labs gets funded to do the protocol growth work and explicitly commits to alignment with token holder interests under that agreement and then the uniswap foundation moves into the lab so the uniswap foundation is already an existing thing they give out grants and they kind of support the broad uniswap ecosystem they become part of the part of labs and so a bigger foundation is made with the dooney the duna and then the uniswap current foundation moves into the labs and then labs becomes a service provider to the duna seems maybe seems complicated doesn't seem that complicated really.

[Ryan]

It'S not that complicated i think it means that the dao's in charge the token is in charge the fees go to the token holders and the token gets some sort of legal representation so can have bank accounts and things like this and basically employees labs it's maybe it's not perfect there i don't think.

[David]

It'S perfect i think there's a bunch of models like this coming forward that i think the market will need to.

[Ryan]

Evaluate it's a big step in the right direction and honestly david i think we have to fix this during this next during twenty twenty six in order to get our tokens back to where they should be because you know aave is still down sixty two percent from.

[David]

All time high yeah but tvl is.

[Ryan]

Up so much it is it's up like fifty x like it's never been bigger it's growing like crazy the team i mean i mean stani just published a twenty twenty six master plan like it's incredible the product itself is incredibly bullish okay so why is the token down so bad it's because investor rights.

[David]

Aren'T enshrined and protected investor rights probably now now that we have the regulatory green light to do things the first thing we need to do is fix investor rights and investor protections let's go.

[Ryan]

Do it i think we will and i think some of these tokens will be steals this cycle in terms of entrance price david we got a few things coming up we gotta talk about solana's biggest conference and what was announced and also jp morgan just chose ethereum for something pretty big we'll talk about all that and more but first wanna shout out our friends and sponsors over at frax the decentralized central bank fantastic stablecoin go check it out introducing frax.

[David]

Usd the genius aligned digital dollar from frax it's secure stable and fully backed by instit institutional grade real world assets custody by blackrock superstate and fidelity it's always redeemable one to one transparently audited and built for payments defi and banking the best of all worlds at the core is fraxnet an on chain fintech platform built to align with emerging us regulatory frameworks where you can mint redeem and use frax usd with just a few clicks deposit usdc send a bank wire or tokenized treasuries and receive programmable digital dollars straight straight to your wallet fracsnet users benefits from the underlying return of us treasuries and earn just by using the system whether you're bridging minting or holding your frax usd works for you frax isn't just a protocol it's a digital nation powered by the frax token and governed by its global communities join that community and help shape frax nation's future by going to frax dot com r bankless frax designed for the future of compliant digital finance token launches are making a comeback but things have changed since the twenty seventeen ico era now we have eight years of research on how to fairly distribute tokens to the market all that progress culminates in the uniswap continuous clearing auction no sniping no timing games no whale advantages just fair transparent on chain price discovery here's how it works a project sets aside an allotment of tokens the continuous clearing auction sells them continuously block by block over a customizable window typically a few days supply is fixed across the auction and as demand comes in they clear price adjusts if new bids arrive the price moves up if they don't it holds steady since bids are filled gradually over the entire window early participants often end up with a lower average price while still giving everyone time to place orders when the auction ends the proceeds can seed a uniswap v four pool giving you day one liquidity without exchange fees or market maker contracts but while the uniswap continuous clearing auction is perfect for launching new tokens it's also an extremely flexible protocol protocol and can be leveraged for price discovery bootstrapping and auctioning of existing low liquidity assets as well if you're launching a token and want an on chain transparent sale that gets tokens into the hands of real believers the uniswap continuous clearing auction is the way to do it check it out at cca dot uniswap dot org as the resident solana expert on this podcast i'll tell you about the three things that happened at solana breakpoint in dubai the number one the three big things first one fire dancer do you remember what financer is it's been a while.

[Ryan]

Yeah it's been it was the other solana client basically that jump capital was deploying that promised insane throughput like a million transactions per second throughput they were making everything incredibly efficient and it's been.

[David]

Long awaited yes yeah so that is now on mainnet written in scratch and c by jump crypto not jump capital but basically it's reimplement solana's networking runtime consensus pipeline to be highly highly optimized sixty six hundred thousand to over one million transactions per second in controlled tests probably doesn't really relate too much to what happens in the wild so we'll probably see what solana actual throughput increases it gets from firedancer shortly it is out in the wild it's deployed before breakpoint it was already running on a subset of validators for about a hundred days and successfully produced so over five hundred thousand blocks but don't don't you.

[Ryan]

Have don't you have like don't the majority of validators have to upgrade to fire dancer for it to actually impact the solana network resident solana bull right because you're still limited by your weakest.

[David]

Link aren't you yes but solana takes turns and so if you have a fire dancer client producing the blocks then in that moment of time you have the fire dancer client as the producing the blocks at the end of the.

[Ryan]

Chain right so the but the more validators that adopt it the greater the effect that fire dancer will have yeah.

[David]

But i don't think there's like a hard line like it just slowly increments upwards and so it's yeah incremental is is the keyword so a minority of nodes are adopting it right now just for security reasons gotta play it safe interesting strategy from solana it is a.

[Ryan]

Pretty big milestone to have their second client from an independent development shop yes.

[David]

But it is not a second client in the same way that ethereum has multiple multiple clients the intent is that the network network goes into fire dancer and it's just a single client and then it has the agave client as like kind of a fallback that's still useful for fallback purposes it's better it's better it's not it's not the security mindedness that ethereum has but sure it's something okay so congratulations to fire dancer getting mainnet can't wait to see all the data that comes in it is a big achievement for solana number two out of breakpoint phantom is launching prediction markets feature with call sheet phantom also in this super app game kind of the same thing that robinhood had and coinbase just announced you have kalshi in the back end small difference perhaps large difference positions are tokenized actually the positions are actually tokens on solana yeah and so this maybe it makes it integrated with the solana defi ecosystem and so you can i think that's actually an.

[Ryan]

Important feature that's pretty cool i didn't.

[David]

Realize that yeah would like to see how it rolls out and like what like how much surface area is there to do more things with tokenized kalshi positions kalshi has like beat his chest saying like yo we're a crypto company and everyone else was like are you.

[Ryan]

Guys yeah i don't know well now.

[David]

Now they have tokenized positions so that's real again third visa offers a stablecoin settlement for us banks on solana so a uscc settlement service for us financial institutions using solana as the rails to send uscc around so those are the.

[Ryan]

Big things yeah another item on prediction markets david was ibkr what does the ceo think about prediction markets what is ibkr why why is why did we.

[David]

Include this isn't that that's interactive brokers so thomas peter peterfi peterfi interesting last name founder of interactive brokers which is a very large brokerage spoke at the goldman sachs conference and talked about prediction markets i thought what he said was notable right now there's a big conversation on crypto twitter about like oh prediction markets are just gambling there's blah blah.

[Ryan]

Blah we had this conversation with joey krug too which was the value of.

[David]

A prediction market there's been this theorized value of prediction markets in a world where prediction markets literally have prediction markets about everything that are also very liquid about the opportunities that arise and i think these statements from the ceo founder of interactive brokers kind of illustrate that future he suggested that institutional prediction markets could move beyond simple forecasting to directly influence automated portfolio management for instance if a market predicts a heat wave a portfolio might automatically address energy investments or hedge electricity price risk and so we are talking about prediction markets about the weather connecting that to your financial portfolio to buy or sell energy based off of weather predictions and whether the world will need more energy or less energy and i think you can use your imagination extend that to just like if there are more prediction markets about more things you could really integrate that into.

[Ryan]

Hedge fund strategies that's right because what are prediction markets they're truth markets they're really information markets more information better information higher quality signal better trading outcomes and signals and faster ability to respond yeah.

[David]

And energy markets are very very large so like the weather and financial markets are actually already interconnected and with prediction markets they can get interconnected in much.

[Ryan]

Higher fidelity ways that's fascinating very creative david speaking of tradfi or maybe suit coiners and suitfi which has been a theme lately on bankless the dtcc you're familiar with dtcc right sure yeah okay well this so this is the company they're like fedwire for us equities and securities so do you remember when sergey from chainlink came on and talked about how chainlink was like working with the dtcc and we were like okay tell us more about the dtcc and he told us at the time that the dtcc settles three to four quadrillion annually.

[David]

It'S a settlement quadrillion moment yeah yeah.

[Ryan]

For quadrillions annually in securities okay that's the dtcc the sec just greenlighted the dtcc so again settlement for all us capital market securities to tokenize their assets okay the first time the sec has ever done this basically greenlighting them giving them the go ahead saying encouraging them to tokenize their assets on ethereum well okay let's talk about that so what the sec did was they approved a three year pilot for certain l one s and l two s not all they had some requirements the ability to operate from a primary and secondary location a maximum four hour recovery time objective so you can't be down greater than four hours a maximum of two minutes of data loss from an outage oh you can't never mind you can't be down for greater than two minutes and annual out of region disaster recovery so they basically said hey whatever chain whatever settlement layer meets these requirements then you can use them we're not going to tell you what to use but but maybe you can't use solana if it's.

[David]

Down well you also can't use ethereum layer twos then you can't a lot.

[Ryan]

Of ethereum layer two s have gone down too but you can't use ethereum.

[David]

The world's greatest super app this leaves.

[Ryan]

A smaller kind of set that have had a history of not going down and so people naturally said okay i.

[David]

Guess you can technically use bitcoin too.

[Ryan]

There was actually a demo that i saw these are the dtc guys right here okay so these are developers of dtcc i'll scan through this demo i won't play it but like basically you can see they have apple this is an apple share settled on dtcc and what they're doing is they are transferring it to ethereum they're tokenizing it and they're doing some things with usdc to buy and sell so this is a demo on ethereum world's greatest super app all right so that happened but also but also the dtcc launched a press release to partner with a blockchain company called the canton network canto canton network not canto and this partnership between the dtcc indicates that the canton network is one of the first pilots where they're actually going to tokenize some of their securities beginning with us treasuries is the.

[David]

Canton network a blockchain the canton network.

[Ryan]

Is kind of a blockchain all right this is big news by the way so they've been operating in the background they've been in like wall street for a very long time talking about real world assets tokenizing things in the background but just like i think crypto natives have been completely unaware of what the canton network is doing because it's not public it's not a fully permissionless chain it's not but like that's part of the value proposition that they're bringing to the dtcc because it's fully private anyway we just booked the ceo of the canton network for the first week of january so we're going to talk to them and learn more about this there's actually a canton network token do you know this did it pump recently two point seven billion dollars yeah okay where.

[David]

Did this dime come from i got.

[Ryan]

To figure out if this is what this thing is we got to figure out what this thing is but that's where their first pilot is it doesn't mean they're going to be exclusive this is just us treasuries this is the first half of the first quarter but.

[David]

How is there a network out there that's worth two point seven billion dollars i have never heard of crypto is.

[Ryan]

Big and this is this is suit coin crypto okay so it's a different world than the world we're used to so it seems like the dtcc is doing things in parallel they're doing some things with canton network maybe they're doing some things with ethereum and we'll have to see where all of this quote.

[David]

Unquote settles right oh nice nice nice well done well done this is big.

[Ryan]

Though jp morgan launched their first ever tokenized money market fund and it is on ethereum world's greatest super app this is the first time we've seen jp morgan actually deploy something as far as i'm aware on the ethereum l one the public chain they've done some things on base they've had their own private ledger that's evm based oh yeah jp.

[David]

Morgan those are the quorum people right.

[Ryan]

Yeah quorum they have quorum in the background that's also doing things that we don't know what it does because we never get to see it but this is the biddle fund essentially you know blackrock's biddle fund kind of money market on chain this is their version of it they're seeing a million a hundred.

[David]

Million dollars what my on chain net yield fund mony m o n y which of course because banks can totally.

[Ryan]

Issue money that's very cute yeah so they're on ethereum now and that's bullish david do kwon got sentenced i actually haven't read about this i just saw the headline yep up what happened fifteen.

[David]

Years in prison pleaded guilty in august of twenty twenty five to of conspiracy to commit fraud and wire and wire fraud judge paul engelmer called this a the crime a fraud of an epic generational scale the sentence was higher than the twelve years requested by the prosecutors oh my god and the five years sought after the defense apparently if you read the notes the there was a bunch of letters that people that got harmed by the terra luna collapse sent in and saying just like this we lost everything i lost everything destroyed my life people committed suicide oh my god and like do kwon was given an opportunity by the judge to read them and he was like i'm good and the judge did not like that so people are thinking like people are thinking like maybe that's why he got the extra extra years added onto that man.

[Ryan]

He could have just pretended to read them where is he gonna serve the time in the us in the united.

[David]

States for the first half but then the second half he goes to south korea to finish his time but also he might also face criminal charges unique to south korea where he could get up to forty more years in south korea so he's he's not done yet.

[Ryan]

Dude yeah this is like this seems worse what did sbf get twenty five years twenty five years okay it's not worse than sbf yeah yeah yeah yeah yeah yeah all right well end of an era i suppose yeah i remember.

[David]

When what's his face the farmer bro was on up only and he was like don't worry doe jail's not so.

[Ryan]

Bad oh my god here we are oh my god here we are and here we are david remember last week we were talking about a new york times piece on staple coins where they were chitting all over them oh yeah.

[David]

This week did they apologize they apologize no they issued retractments or corrections they.

[Ryan]

Wrote a piece on how the sec was basically bending under trump's will and let's see under the second trump administration the sec inherited about twenty three crypto related cases from the biden era and it pulled back from roughly sixty percent of them via dismissals pauses freezes or favorable sentiments settlements they linked this to basically crypto donations and all sorts of other things basically implying that you know the crypto industry and trump are kind of in cahoots working together and he is giving favorable access to like he's giving favorable rulings to crypto basically which is not completely untrue but the fact that they are not realizing how unprecedented the sec's attack on crypto was in.

[David]

The first place yeah the implicit assumption anchor point being made here is that the sec administration of the biden era was the normal case and not in cohes with elizabeth warren and the democrats it's just the same thing now we're pointing in a different direction exactly this.

[Ryan]

Is the kind of thing i think the attacks from the new york times and other entities like it will continue just because the trump administration has come out so pro crypto and they just have to default b if trump's for it then we're against it it and so it's unfortunate but crypto's moved once again into partisan territory and i don't see that changing in the short run.

[David]

Nope all right ryan we got the last news of the week perhaps the most important when crypto comes into culture you know we're onto something netflix has announced a new bitcoin comedy they have green lit just what we needed a crypto themed romantic comedy called one attempt remaining led by jennifer gardner it follows an ex couple who years after a messy divorce discover that the bitcoin they they won during a wild drunken night on the cruise is now worth thirty five million dollars only problem is ryan can you guess what the problem is.

[Ryan]

Oh they lost their seed phrase right.

[David]

They no longer remember the seed phrase they have one single login attempt and a very short deadline before the funds become inaccessible forever i would like to know how that happens and you know this seems like a i know you're waiting on the edge of your seat to watch jennifer gardner and her love interest ex love interest figure out their private keys i don't know i don't.

[Ryan]

Know how funny they're gonna be able to this is like straight to netflix movie right yeah i don't know how i'm gonna watch this i'm really interested because there's also the detail that they only have a single login attempt and a very short deadline yeah that's how it becomes inaccessible cool right so i actually want to watch this with an eye towards how accurate it is to.

[David]

Actually have i have a prediction for you i have a prediction for you what's your prediction it's not going to be accurate you think i'm going to be disappointed i think you're going to be very disappointed well maybe i'll come.

[Ryan]

For the tech but i'll stay for the comedy that's my hope ryan is.

[David]

A big rom com guy huge huge.

[Ryan]

Rom maybe i could actually get my wife to watch something on crypto for the first time guys we'll have to end it there got to let you know of course none of this has been financial advice crypto is risky you could lose what you put in but we are headed west this is the frontier it's not for everyone but we're glad you're with us on the bankless journey thanks a lot happy holidays oh god ethereum world's greatest super apparent.