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- [00:00]
A
Absolutely. I mean, I think we kind of get a frontline seat to seeing, like, where the market is heading, right, because we see what clients are working on and how we need to adapt our technology to be able to support those use cases, as you pointed out, Right. I think the shift over the last 12 months as monetary policy rates have kind of steadied is how can we kind of increase yield, Right. It's no surprise, right, that in defi, people love their yield. They love their kind of yield looping strategies, right? So the race has been to create products that are attractive to that part of the market, right? And that's really where we've seen Clos take off, right? So we saw, you know, Centrifuge with Janice Henderson launch J aaa, right?
- [00:57]
B
We saw, like, what else did we see and acred.
- [01:02]
A
Exactly. Yeah, right. There was the Apollo Akredics, right? You know, all of these, which, which we actually support at Chronicle. And I think even just yesterday or I think it was like two days ago now, we announced, right, that we were supporting Galaxies first tokenized clo, which I think is quite interesting because Galaxy, if they're getting into tokenization, they're going to be a really huge player. They have the network and they sit kind of perfectly nestled in between DeFi and on the TradFi side. So I think they're going to do really well. And I mean, the product that we support there is Galaxy is either directly or indirectly, right? Letting people borrow against their crypto, right? Against Bitcoin, against eth, sol, xrp, right? Whatever it is. And so all that we are doing is we are getting like the loan book from. From Galaxy, and then we're going to their custodian, right? We're going to Anchorage and we're checking like, okay, is there actually, you know, all this btc, all this sol, all this xrp, all this ETH in custody, you know, can we trace every way, you know, every satoshi, you know, that is claimed to be, you know, as collateral on these books, right? We identify the, the liabilities. And now we can say, okay, you know, this CLOS is, I don't know, 200% collateralized, right? And so, okay, and it's yielding 7%, right? So it's, it's giving pretty good yield, right? And so now one, like anyone who wants to pursue could potentially buy this Galaxy clo, right, like, can see, okay, look into the guts and like, know that, like, someone independent, like Chronicle has, like, validated all of this. But two, now someone like Morpho, you know, you can have a vault and you can create, like, a looping strategy on this. Right. So you can juice your 7% yield into 14 or 21%, right. What have you. Right. And that's really like, what, like, you know, it's this two stages of, like, what Chronicle enables. Like, one, it's the transparency that gives, like, the confidence in these assets. And then two, right. It's the ability for defi, Right. To. To integrate them.
- [03:25]
B
Yeah.
- [03:25]
A
So, I mean, in terms of, like, what's. What's coming up, you know, we're. We're seeing, for example, like REITs, like real estate investment trusts are. There's a couple of those coming out, so we're excited about those. I think you may have seen center for you just announced with New York Life that they're going to be releasing a new, like a new fund as well. I. I think kind of equities right now are. Are really hot, and I think it'll take a while to get there. Right. Like you were alluding to before, right. That there's like, all these promises and some of them have panned out and some of them haven't. I don't think it's. It's a matter of. It. It hasn't. It doesn't pan out. I think it's more a matter of just like, it needs more time than anyone thinks it does. But, like, the. The promise is huge, right? Like, if you. You go. If you have some stock, if you have Tesla stock and you want to go borrow against your Tesla stock, like, your broker is going to charge you, like, very high single digits, low double digits, right? Versus in DeFi. I mean, if you're gonna lend these things with, I don't know, LTV of like 30% or something, right. You know, DeFi will like, offer you, like, mid to, you know, high, you know, single digits on this stuff, like, all day. Like, if you look at obviously what do you get for lending USDC, you're getting 2.7%. You're literally getting less than T bills. Like, so there's. I think there's really an opportunity, right, for Defi to kind of be the mechanism where it can. One of the flywheels for tokenized equity is taking off is just going to be this ability to. To get leverage against your equities at like, much cheaper rates than. Than you can in. In tradfi with your broker.
- [05:29]
B
Yeah. One thing I was actually kind of really dying to ask you is I want to get your thoughts on some of the, I guess, controversy that surrounded, like, for instance, the SpaceX IPO and some of the markets that were spun up where people were able to kind of bet on the price of some of these pre IPO shares or private market shares. And I know with the SpaceX, I mean, I think there were a couple of tokenized providers that had to give back the money because they weren't able to procure the shares out there. And I mean that seems to be like the types of issues that a company like yours would I guess, make sure do not, does not, do not happen.
- [06:05]
A
Yeah, yeah, sure. I mean, at that it's. People didn't know what they were buying, right. They were buying an SPV on an SPV on an spv. Right. They had like second degree, third degree exposure. And yeah, when it came time to hey, I want to get my shares right, a lot of these things blew up rather from fraud or just improper legal structuring or just they never got the shares. But yeah, this is really what Chronicle is here to do, is just give you absolute end to end transparency into everything. And that's what's going to keep DEFI antifragile. That's how we're going to scale DEFI with tokenized assets and keep DEFI from not having the same systemic risks that we see in the traditional financial industry.
- [06:56]
C
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