00:02Look, I think everything needs to be on the blockchain, right?
00:05The blockchain is a better ledger and capital markets run on antiquated ledger technologies that are silo or not connected.
00:11So is everything that's not on the blockchain going to be on the blockchain?
00:14I think so. I think we're going to tokenize the world and everything that is on a ledger will upgrade to a better ledger technology.
00:19And that's what a blockchain is.
00:21So what does tokenization of CLOs do? Who does it serve most?
00:25So look, one of the most successful tokenized products are treasuries.
00:28Obviously, we have the largest one with with the bill product from from BlackRock.
00:32And if you think about where the market is heading, interest rates are coming down.
00:35So people are going to be looking for things that are a higher interest than than treasuries, but they still are safe and liquid.
00:42And CLOs is kind of like the most adjacent thing. This is a triple A rated CLO products.
00:46So potential investors or existing investors?
00:49I think both. We're getting, you know, the 100 million seed allocation.
00:53This is going to be our seventh fund that has more than tokenized fund with more than 100 million dollars from growth.
00:58Which is part of the Sky ecosystem, the former maker now.
01:02It's an existing investor, but they're just putting additional money into this new product.
01:05I want to dig into the idea of everything being tokenized.
01:08I mean, that's I think if we could have a theme for 2025, perhaps that would be it.
01:12I mean, Vlad Tenev talks about this at Robin Hood, putting private companies on the blockchain so people can have access to them.
01:17But at the end of the day, there are these rules about who can invest in these sorts of things.
01:21The idea is investor protection.
01:23And if we open those things up to people who may not be so, you know, so-called accredited investors, is that dangerous in some way?
01:30Actually, tokenization doesn't change the rules, right?
01:32So tokenization is just upgrading the ledger where the securities sit to make them easier to transact, consume, etc.
01:38But if a product is only for accredited investors, it's still only for accredited investors, even if it's tokenized or not.
01:43So there's a misperception thinking that tokenization changes the regulations.
01:46And that's actually not true.
01:48So I don't think that there's any additional risks on tokenization than on traditional, you know, capital markets rails.
01:54It's actually the opposite.
01:55You get more, you know, transparency, insurance about the ownership, etc.
02:00Does tokenization matter as much to retail investors as it does to institutional investors?
02:05I think it matters a lot to retail because at the same, you know, any technology that, you know, makes things cheaper, easier, more accessible, you know,
02:13obviously pending the regulatory, you know, framework, makes it easier to consume for retail people like, you know, large investors.
02:20They have armies of people that they can deal with inefficiencies in markets that retail people don't have.
02:24So I think it's a great equalizer for accessing financial services.
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