🚨 Ep. 101 of @TokenizedPod: SEC Unlocked Tokenized Stocks @sytaylor & @cuysheffield are joined by: 👉 @chandhok, Chief Product & Technology Officer, @circle 👉 Simone Maini, Chief Executive Officer, @elliptic To discuss: 🗓️ SEC five-year exemption for tokenized US stock trading 🏛️ AMMs and their role in traditional capital markets 🚀 Circle launches Arc mainnet with USDC transaction fees 🔐 Arc privacy features and institutional compliance monitoring 🛠️ Building onchain FX markets using global stablecoins 🌐 S&P Global acquisition of smart contract auditor OpenZeppelin 🤝 Regulators adopting technology for onchain compliance and oversight ⛓️ Blockchain audit trails and crypto trust primitives for AI 🇭🇰 BlackRock tokenized Hong Kong dollar money market fund 🏦 Tokenized money market funds as stablecoin reserve assets *** Timestamps: 00:00 Introduction 2:19 SEC five-year exemption for tokenized US stock trading 9:32 AMMs and their role in traditional capital markets 13:58 Circle launches Arc mainnet with USDC transaction fees 17:51 Arc privacy features and institutional compliance monitoring 20:04 Building onchain FX markets using global stablecoins 24:33 S&P Global acquisition of smart contract auditor OpenZeppelin 33:14 Regulators adopting technology for onchain compliance and oversight 37:21 Blockchain audit trails and crypto trust primitives for AI 41:10 BlackRock tokenized Hong Kong dollar money market fund 45:06 Tokenized money market funds as stablecoin reserve assets *** 👉𝘚𝘦𝘢𝘳𝘤𝘩 '𝘛𝘰𝘬𝘦𝘯𝘪𝘻𝘦𝘥 𝘗𝘰𝘥𝘤𝘢𝘴𝘵' 𝘖𝘯 𝘠𝘰𝘶𝘛𝘶𝘣𝘦. 𝘈𝘱𝘱𝘭𝘦, 𝘚𝘱𝘰𝘵𝘪𝘧𝘺 𝘰𝘳 𝘢𝘯𝘺 𝘗𝘰𝘥𝘤𝘢𝘴𝘵 𝘗𝘭𝘢𝘺𝘦𝘳! 👈

CPTO @circle, @chandhok on Tokenized with hosts @sytaylor and @cuysheffield said the core infrastructure for onchain stock markets is arriving now with a full upgrade to US market structure expected within two to three years.⁣ ⁣ "I think everybody understands that this is how you'd want to settle things, this is how you would want to have your markets operate 24/7."⁣ ⁣ "We should see more, just as the core financial infrastructure of like the US stock markets is gonna get upgraded in the next two to three years, it's gonna be chain, there's gonna be new sort of models of managing risk."⁣ ⁣ "I think tokenized stocks is the right thing to do anyway, having these instruments on chain, having settlement on chain, having some of these newer forms of market structure."⁣ ⁣ "These assets can take advantage of these new market structures and these market structures can take advantage of these new assets."⁣ ⁣ That two to three year window covers settlement moving on chain, markets running continuously, and risk management being rebuilt around both.⁣ ⁣ 🎙 Listen to the latest episode on Tokenizedpod(dot)com

Head of Market Development @Tempo and our cohost @sytaylor on Tokenized said that the UK could leapfrog into 24/7 onchain gilt settlement as Digit, HSBC and LSEG move toward direct issuance.⁣ ⁣ "Whereas in The UK, what they're looking at with Digit, with HSBC and LSEG is the direct issuance of gilts on chain."⁣ ⁣ "That is, to my mind, gonna be enormous because now you have end to end twenty four seven capability all the way up through kind of the government itself."⁣ ⁣ "With the Bank of England, you have something that next generation RTGS is trying to get as close to twenty four seven as possible."⁣ ⁣ "The UK may be sort of the tortoise and the hare situation here. It's annoyingly slow and then maybe come next year."⁣ ⁣ If gilts settle end to end on chain, next generation RTGS could make round the clock settlement the default for UK government debt.⁣ ⁣ 🎙 Listen to the latest episode on Tokenizedpod(dot)com

CEO @elliptic, Simone Maini on Tokenized with hosts @sytaylor and @cuysheffield said regulators are moving to close the clarity gap with a wave of new proposals framed as a live sandbox for the industry to test. "I think the CFTC have put something out today as well." "This is just gonna be a bit of a fire hose where they're gonna really be looking to bridge the gap now between clarity failing and providing as much of that clarity and guardrails as they can." "We're gonna see rule making proposals. I think the chair has said today that they want this actually to be a permanent thing, but they're gonna put this out for solicitation and input from the industry." "Within these guardrails, come and have a go, come and test the boundaries and give us feedback." The pitch to institutions is simple, the rules are still being written, so testing now shapes what becomes permanent later. 🎙 Listen to the latest episode on Tokenizedpod(dot)com

The US is weighing a plan to push dollar stablecoins abroad. @mattgmarcus cofounder and CEO of @ModernTreasury said something along the same lines on Tokenized last week: "I think it's (stablecoin) a great tool for soft power for the country. You know, makes the dollar more important around the world." Dollar stablecoins are backed by Treasuries, so every one held abroad is foreign demand for US debt. 🎙 Listen to the latest episode on Tokenizedpod(dot)com

Head of Crypto @Visa and our cohost @cuysheffiled latest episode of Tokenized said tokenized money market funds like BUIDL could soon double as reserve assets for stablecoin issuers.⁣ ⁣ "The fact that BUIDL was gated at the smart contract, you had to be KYC, but you could still access it on Ethereum. That was a huge deal."⁣ ⁣ "Now they've launched two additional funds in August, and one in September."⁣ ⁣ "You've got the potential of these money market funds being used as reserves for stablecoin issuers. I think that's a super interesting use case."⁣ ⁣ "Shouldn't the entire reserve management just be on chain and just be able to have money market funds, tokenized deposits, and be able to move much more efficiently between the stablecoin kind of digital cash with the underlying assets that are backing it."⁣ ⁣ "I wonder for this Hong Kong use case, with all of the activity and innovation around tokenized deposits and stablecoins that are starting to emerge in Hong Kong, will this product be one of those reserve assets."⁣ ⁣ Hong Kong's push into tokenized deposits gives issuers a live test bed for holding reserves entirely on chain.⁣ ⁣ 🎙 Listen to the latest episode on Tokenizedpod(dot)com

AI-enabled financial crime is scaling faster than regulators can write rules for it. Elliptic CEO Simone Maini joined @tokenizedpod to discuss why compliance can't wait, and how we're co-building agentic guardrails with Circle. 🎥 Full episode: hubs.la/Q04y7FJ90

CPTO @circle, @chandhok on Tokenized with hosts @sytaylor and @cuysheffield said AI needs proof based trust and crypto already builds for that.⁣ ⁣ "The first place where crypto interacts with AI is that we are hard money."⁣ ⁣ "Money is just the beginning of what is trust, right? So you have other trust, like primitives that can be built, that can be proved, and crypto have all the primitives to do that."⁣ ⁣ "We have these incredible chains with incredible TPS, and here come the actors, and we can now start building systems that remove risk and create more capital efficiency."⁣ ⁣ That reframes crypto's rails from a speculative narrative into the infrastructure AI agents will need to transact and prove trust.⁣ ⁣ 🎙 Listen to the latest episode on Tokenizedpod(dot)com

Tokenized money-market funds like USYC keep the stablecoin payment separate from the yield-bearing asset underneath it.⁣ ⁣ Nikhil Chandhok (Chief Product & Technology Officer, @circle) on the latest episode of Tokenized with hosts @sytaylor and @cuysheffield, alongside guest Simone Maini (CEO, @elliptic).⁣ ⁣ The stablecoin itself stays liquid for payments, while the yield lives in a separate, tokenized fund structure backing it. Chandhok also outlined why this model is expanding beyond the US into other currencies and markets.⁣ ⁣ 🎙️ Listen to the latest episode on Tokenizedpod.com

Simone Maini, CEO @elliptic on Tokenized with hosts @sytaylor and @cuysheffield said Hong Kong is turning onchain money into an institutional inevitability. "This is the regulatory framework we want, and getting that done and creating that environment where the likes of those guys can come out and say, we're gonna do this." "It's really a huge milestone where we add all of this together and look back on things that were really transformative for the space." "How much this is coming from Standard Trust's client base saying, we want to be able to have our money at move rather than so much at rest." "A lot of this demand is really coming bottom up now, and it's impossible for the institutions to ignore." When clients ask for capital that moves rather than sits, custodians and banks have to build the rails, not just watch the market for them. 🎙 Listen to the latest episode on Tokenizedpod(dot)com

CPTO @circle, @chandhok on Tokenized with hosts @sytaylor and @cuysheffield said every agent-to-agent deal is about to become its own generative smart contract, and auditing millions of them at once is the unsolved problem behind it. "We're gonna move from like these few thousand contracts, a few tens of thousands of contracts to like tens of millions of contracts, because all contracts can be generative now." "You and I, your agent and my agent can have a generative contract for a custom exchange of value." "Every Venmo arrangement is a unique contract in my mind." "As soon as they escape their databases, it's my agent is on one system and your agent is on another system, gonna probably come up with a new way of like interacting with each other." Once agents sit on separate systems, someone still has to check that each of those millions of contracts does what it claims before either side trusts it. 🎙 Listen to the latest episode on Tokenizedpod(dot)com

Payouts are usually treated as a cost line. On @TokenizedPod, Ryan Bozarth made the case that for payroll companies and marketplaces, they can be a revenue line. These platforms already have the hardest thing to earn, which is distribution. Putting programmable dollar rails underneath the money already flowing through them does two things at once. It speeds up global payouts, which shows up directly in the user experience. And it opens revenue that was not there before: float, exchange, interchange on card programs. That changes the math on the whole business. Higher lifetime value supports a higher acquisition cost, which funds more distribution, which grows the business. These are new revenue lines running in parallel with the banking system, not carved out of it.

Simon Taylor explains blockchain as a giant auditor held back by its crypto baggage “Big picture wise , we're in this interesting time where AI is probabilistic and people worry about hallucinations or doomsday scenarios. And what do you have? This phenomenal deterministic state machine that uses cryptography to transition state. It's a giant auditor in the sky: blockchains.” “The way I used to describe this to people in 2015, when they were new to blockchains, is like, imagine a golden source record of every transaction, an auditor in the sky. You can make a change and it's a golden source, so it updates every single time, but there isn't a single point of failure.” “If I was to describe that technology to you and say it was a blue blah blah, you would tell me that you want it. But because I say it's a blockchain, you go, ‘Oh, I'm not so sure about that thing,’ because it comes with this crypto baggage.” “And that was how blockchain pulled a whole bunch of people in the mid-2015s back when I worked at a bank.”

We're back. Thank you @X 🫡

🚨 Ep. 99 of @TokenizedPod: Big Bank Stablecoin - Can It Compete? @sytaylor & @cuysheffield are joined by: 👉 Darko Hajdukovic, Head of Securities Digitization, @LSEplc 👉 @adavaughan, Head of DeFi, @StellarOrg To discuss: 🤝 LSEG and Kraken partnership brings tokenized stocks to LSE 24 📊 Stock tokens merging with DeFi and new financial products 🌐 Tokenized and traditional stocks coexisting across public markets ⛓️ Onchain equities expanding global access and DeFi collateral use 💰 ICE invests in tZERO amid tokenized securities regulatory changes 💳 Wallet-based securities access bridging traditional and digital markets 📈 Athena Pay and rising competition among global stablecoin neobanks 🌍 Local payment integration challenges across Kenya and Brazil 💸 Stablecoin interoperability and programmable settlement for tokenized RWAs 🏛️ Major financial institutions forming a joint bank stablecoin consortium *** Timestamps: 00:00 Introduction 1:21 LSEG and Kraken partnership brings tokenized stocks to LSE 24 5:59 Stock tokens merging with DeFi and new financial products 9:53 Tokenized and traditional stocks coexisting across public markets 11:22 Onchain equities expanding global access and DeFi collateral use 15:11 ICE invests in tZERO amid tokenized securities regulatory changes 21:37 Wallet-based securities access bridging traditional and digital markets 28:42 Athena Pay and rising competition among global stablecoin neobanks 30:44 Local payment integration challenges across Kenya and Brazil 36:01 Stablecoin interoperability and programmable settlement for tokenized RWAs 38:24 Major financial institutions forming a joint bank stablecoin consortium *** 👉𝘚𝘦𝘢𝘳𝘤𝘩 '𝘛𝘰𝘬𝘦𝘯𝘪𝘻𝘦𝘥 𝘗𝘰𝘥𝘤𝘢𝘴𝘵' 𝘖𝘯 𝘠𝘰𝘶𝘛𝘶𝘣𝘦. 𝘈𝘱𝘱𝘭𝘦, 𝘚𝘱𝘰𝘵𝘪𝘧𝘺 𝘰𝘳 𝘢𝘯𝘺 𝘗𝘰𝘥𝘤𝘢𝘴𝘵 𝘗𝘭𝘢𝘺𝘦𝘳! 👈

Bank stablecoins and tokenized deposits don't mean much without solving payments and settlement underneath them. Darko Hajdukovic says the cash leg is where that gets decided.⁣ ⁣ Darko Hajdukovic (Head of Securities Digitization, @LSEplc) on the latest episode of Tokenized with hosts @sytaylor and @cuysheffield.⁣ ⁣ "Not everyone wants everything prepaid, but we need to think about the cash."⁣ ⁣ Simon Taylor picked up the thread from there, pointing out that a clearinghouse and Zelle can look at the exact same stablecoin and land on completely different use cases, because what it's useful for depends entirely on the business objective behind it.⁣ ⁣ 🎙️ Listen to the latest episode on Tokenizedpod.com

Darko Hajdukovic doesn't think tokenized equities are about telling clients how to invest. He says they're about giving clients more ways to do it themselves.⁣ ⁣ Darko Hajdukovic (Head of Securities Digitization, @LSEplc) on the latest episode of Tokenized with hosts @sytaylor and @cuysheffield.⁣ ⁣ "There's a demand for greater flexibility, certainly for extended hours. We're going to be meeting our clients' demand and let them choose their investments."⁣ ⁣ 🎙️ Listen to the latest episode on Tokenizedpod.com

Visa now runs 160+ stablecoin-linked card programs, up nearly 200% in a year. @CuySheffield, Head of Crypto at Visa and our cohost at Tokenized has been saying it for months: "stablecoin linked cards are in hyper growth mode.." "every week, there are new programs that are going live. There are new enablers that are coming in the space. There's more competition. There's more innovation" "it's like a new era for fintech" "any fintech that wants to operate globally is going to want to have a stablecoin-linked card"