The Compound and Friends

Episode: Solana Tokenizes Stocks with Anatoly Yakovenko, eVTOL Stocks with Andres Sheppard, Oracle Questions, BDC Trouble

Date: October 7, 2025
Host: Downtown Josh Brown
Guests: Anatoly Yakovenko (Solana Labs), Andres Sheppard (Cantor Fitzgerald), Interactive Live Chat

EPISODE OVERVIEW

This dynamic episode of The Compound and Friends delves into three major themes shaping the financial and investing landscape:

1. The collision between traditional finance and blockchain, zeroing in on Solana’s potential to tokenize stocks, with Anatoly Yakovenko (Solana Labs).
2. The emergent “low altitude economy” and the future of electric vertical takeoff and landing (eVTOL) vehicles and companies, with mobility analyst Andres Sheppard.
3. Current Wall Street hot topics including BDCs (business development companies), the wealth effect, the stock market’s dominance over economic sentiment, and skepticism around AI-capex in the tech sector.

With Michael Batnick away, Josh Brown flies solo (with a lively live chat), delivering high-level insights, memorable quotes, and interactive analysis. The show features an expert balance between big-picture trends, live debate, and practical details for investors.

1. Solana and the Tokenization of Wall Street (00:02 – 44:08)

A. Origins and Technical Edge of Solana (03:24–19:52)

• Anatoly Yakovenko shares the origin story of Solana, inspired by a blend of engineering experience (cellular networks at Qualcomm) and the inefficiency of Bitcoin's proof of work.
  • “My dumb eureka moment was that there's a way to build a clock in these systems that could coordinate all these nodes and use the same time division multiple access kind of hack that cellular networks did.” – Anatoly (07:03)
• Solana’s Unique Consensus: Utilizes both Proof of Stake and Proof of History for scalable, efficient transaction throughput.
  • “If everybody on the Network has a 10 gigabit node, you can actually use all 10 of it... This is the key property I was bad at explaining to VCs, but it turned out to be extremely right.” – Anatoly (18:36)

B. Decentralization, Use Cases & Ecosystem (10:44–32:42)

• Yakovenko positions Solana as “decentralized enough,” akin to an open source project—no guiding ‘central government’ or company.
• Early Solana vision: An “execution layer” for open and fair trading, not just another Bitcoin.
  • “Me as a trader, putting on my trader hat, I felt that this could be a fair open trading system for anybody in the world. So I went after this, let's build an execution layer, let's get a decentralized DAX.” – Anatoly (13:11)
• Solana’s evolution included organic explosion in NFTs, providing lower fees and democratizing access beyond Ethereum’s constraints.
  • “We gave [artists] free tools and unblocked them... and it all kind of snowballed after that.” – Anatoly (25:56)
• Major revenues now come from trading/meme coins, though the original vision remains to compete with Nasdaq via regulated, tokenized assets.

C. Tech Deep Dive: Proof of Stake, Quantum Risk, and Revenue Model (15:15–42:37)

• Explanations of proof of stake vs. proof of work, and “proof of history” as Solana’s innovative synchronizing clock.
• Quantum Computing: All major protocols are theoretically hackable, but quantum risk is decades away.
  • “Every major protocol is hackable to a quantum computer... But this would require like a million qubits at current technology. So we're very far [from that].” – Anatoly (20:27)
• Solana’s Crypto-Economic Model: Stakers and validators generate substantial revenue from tips and network fees—seen as real, enterprise-like revenue.
  • “If you run a validator... last year it was over a billion dollars... you can collect all the tips.” – Anatoly (29:02)
  • “Proof of stake networks should be valued just like any other company. You can look at revenues...the entire protocol is defined in software.” — Anatoly (37:47)
• Sol token’s value proposition: If network activity and tipping increase, demand for tokens should rise; but inflation (if you don’t stake) is a real cost.

D. Tokenization of Stocks: The Next Frontier (32:42–44:08)

• Solana is emerging as the fastest platform for tokenized equities trading, already seeing major volumes in projects like XStocks.
  • “You can just launch the product on Solana. On Ethereum you have to announce an L2 for it first.” – Anatoly (35:04)
  • “That cycle is just much, much faster on Solana. If you have financial innovation, it's going to happen much faster on Solana as we've seen.” – Anatoly (36:26)
• Anatoly’s “dream” is full tokenization of stocks and bonds directly on-chain—regulatory hurdles are the main roadblock.
• ETF Hopes: Multiple filings for a Solana ETF; expectation is increasingly high as regulatory climate improves.

Notable Quote:

• “If the network activity grows and more tips are generated... then people are willing to pay more dollars... so as the tips increase, you will allocate more towards that business versus Treasuries.” – Anatoly (41:29)
• On decentralization: “Our goal is to unblock whatever use cases... and getting regulated equities... on chain is like these big hurdles that the foundation can work on...” – Anatoly (32:14)

2. The eVTOL Revolution & Low Altitude Economy (47:44–78:34)

Guest: Andres Sheppard – Lead Mobility Analyst, Cantor Fitzgerald

A. What Are EVTOLs & Why Now? (47:47–52:19)

• EVTOL = Electric Vertical Takeoff and Landing aircraft—a new class of “flying cars” or “taxis” for short urban hops (~100 miles).
• Early adoption will likely be for government/military/rescue, but goal is mass-market, consumer mobility.
• Advantages over helicopters: Much quieter, greater redundancy (up to 12 rotors), and far lower operating/maintenance costs.
  • “The reality is that helicopters today have three fundamental flaws... EVTOLs address those three flaws. For starters, they're electric... they reduce the noise profile significantly.” – Andres (50:25)
• Technological progress has been fueled by advances in EV battery density, following Tesla’s example.

B. Industry Landscape, Key Companies, and Business Models (54:43–66:59)

• Joby Aviation (Joby) and Archer Aviation are the industry leaders (“the Coca-Cola and Pepsi of EVTOLs”).
  • Joby: Partnered with Delta (operations), Toyota (manufacturing), and the US military. Focused on being an operator, not just selling aircraft.
  • Archer: Partnered with United Airlines, Stellantis. Focused on OEM (build/sell aircraft) but also plans a taxi operation.
• Both companies are pre-revenue but well-capitalized post-SPAC boom.
  • “You could argue that it was early for them to enter [the public market]... But as you said, right, they're here now...” – Andres (57:35)
• EVTOL industry is NOT winner-take-all—expects multiple global players in consumer, cargo, and specialty use-cases.
• Upcoming commercial launches: UAE (Dubai, Abu Dhabi) targeted for first deployment, followed by the U.S./Europe. Archer secured exclusive EVTOL rights for the 2028 LA Olympics.
  • “Their goal is to be first... both Archer and Joby are targeting to first enter into commercialization [in the UAE] prior to the United States.” – Andres (67:38)

C. Global Race & Investment Outlook (71:01–77:56)

• China: Already leads with EHang (EH), which has certified two-seater autonomous EVTOLs for sightseeing/tourism.
  • “China is actually today ahead of the US in its EVTOLs... They are the only company today in this industry who has already received their type certification.” – Andres (72:19)
• The “low altitude economy” is a once-in-a-generation mobility opportunity—includes EVTOLs, drones, and below-3300ft aviation.
  • “If you're looking for potential home run ideas over the medium to longer term... then I share your enthusiasm here and I think we're looking in the right place... We are going to have flying cars in our lifetime.” – Andres (75:33)
• Cautions: FAA regulatory hurdles, business model uncertainties, production scaling. Emphasizes medium/long-term investment horizon.

Notable Quotes:

• “Helicopters are a dinosaur... there has to be a better alternative, and that's what I think EVTOL will come in... We are going to have flying cars in our lifetime.” – Andres (77:56)
• “This should be considered a medium to long term investment... but if you're looking for potential home run ideas... then I share your enthusiasm.” – Andres (75:31)

3. WHAT'S HOT ON WALL STREET: Market Segments & Macro (78:34–End)

A. BDC (Business Development Companies) Trouble (78:34–89:03)

• BDCs are publicly traded lenders—under pressure due to rising defaults and lower rates.
• Several high-profile names (Blue Owl, Main Street Capital, Ares) in significant drawdowns despite a strong macro backdrop.
  • “Drawdowns are normal when there’s concern about cutting dividend yields... risk is you look at something that's like a 10 or 11% distribution... Problem is if rates keep coming down and/or economy gets worse and there are more defaults, there’ll be more skepticism about these vehicles.” – Josh (85:31)
• Investors must be cautious, differentiate between quality lenders and those more exposed to shadow banking risks.

B. Wealth Effect, Stock Market & Economy (90:22–95:39)

• Robert Frank reports: The top 10% of Americans added over $5T in wealth last quarter; top 1% own 50% of US stocks.
  • “The economy is a function of how the stock market is doing... The biggest risk to the economy is the stock market. It used to be the reverse.” – Josh (91:10, 92:27)
• Spending is now extremely “top-heavy:” 49% of consumer spending by top 10%—the whole economy is “an upside down pyramid.”
• AI’s impact: Hiring slowing due to uncertainty about automation, Accenture layoffs cited as leading indicator.

C. Oracle & AI Capex Skepticism (95:39–99:10)

• Oracle’s cloud/AI capex margins questioned (reportedly just 14%), leading to sector-wide NASDAQ/AI stock selloffs.
  • “Thank God somebody is writing and reporting skeptically on all this spending... You must have skepticism, you must have people on the other side of some of these things so it doesn't feel like we're just going to bubble up vertically until there's a crash.” – Josh (98:33)

D. Rapid-Fire: Netflix, Healthcare Mystery Chart & Sector Rotation (99:10–End)

• Netflix: Technically at support; ad business estimates are growing; seen as a potential opportunity.
• Mystery Chart: Healthcare sector vs. S&P 500. Sector has massively underperformed—Bank of America’s Savita Subramanian upgrades, sees historic valuation support.
  • “These stocks have never been cheaper [vs. S&P 500]. I feel like we have to pay attention to that.” – Josh (102:59)

MEMORABLE MOMENTS & QUOTES

• “I don't know if you ever been a founder, but 18 months into any project, your goal is to... survive, get to the next stage... so any kind of usage is good. You almost forget about, like, your ego is totally stripped away at that point.” – Anatoly Yakovenko (30:59)
• “In our lifetime and possibly before the end of this decade, we are going to have flying cars... This will start in the dozens, in the tens, in the maybe hundreds, and kind of ramp up from there. It will take some time, but we are going to have flying cars in our lifetime.” – Andres Sheppard (77:56)
• “The economy is a function of how the stock market is doing... The biggest risk to the economy is the stock market. It used to be the reverse.” – Josh Brown (92:27)
• “You must have skepticism... so it doesn't feel like we're just going to bubble up vertically until there's a crash.” – Josh Brown (98:33)

EPISODE TIMESTAMPS

| Segment Description | Timestamp (MM:SS) | |----------------------------------------------|------------------| | INTRO - Show Overview | 00:00–02:22 | | Anatoly Yakovenko on Solana: Origins & Tech | 03:24–19:52 | | Solana’s Economics and Tokenization | 27:22–44:08 | | Andre Sheppard on EVTOL Stocks | 47:44–78:34 | | Business Development Companies (BDCs) | 78:34–89:03 | | Wealth Effect, AI, Hiring & Macro | 90:22–99:00 | | Oracle Skepticism & AI Capex | 95:39–99:10 | | Netflix, Healthcare mystery chart, Closing | 99:10–End |

RESOURCES FOR FURTHER LEARNING

• Solana: Solana.com
• EVTOL Companies Discussed: Joby Aviation (JOBY), Archer Aviation (ACHR), Vertical Aerospace (EVTL), EHang Holdings (EH), EVE Holdings (EVEX)

For those who haven’t listened:
This episode is a comprehensive, insightful tour through bleeding-edge blockchain, the future of urban mobility, and the critical junctures of today’s market narrative. Expect balanced skepticism, actionable breakdowns, and the signature Compound chemistry—no matter which segment you care about, you’ll find depth worth your time.