00:00As we sit here in the SeaTalk, you can see the remarkable scale that this firm operates at.
00:05And you can see all of the systems and our traditional systems power tens of trillions of dollars of assets
00:11settling and trading every single day.
00:13And then when you combine that with the new and the latest technologies of digital assets and blockchain, which is
00:19a 24-7 programmable always on, it's pretty amazing what can be done.
00:24That 24-7 nature, is that here now or is that the future?
00:28So we have here at BNY a BNY chain, and that isn't always on blockchain that powers many of our
00:36clients inside the house.
00:38It's not a public chain. It's a private permission chain.
00:40And as we connect our scaled systems with that chain, it enables them to enact and do things all the
00:47time, so 24-7.
00:49At the same time, there's a huge opportunity to connect many more assets, other books and records, and other transactions
00:56on chain 24-7 that we're still in progress of doing.
00:59The push that we've seen into tokenization, how does that actually fit into what you do?
01:05So what's nice when we think about storage, so we are an amazing storage firm.
01:09We store about 60 trillion of assets for our clients.
01:11That's custody.
01:12But mobility is about tokenization.
01:14It's about the ability to move those assets faster.
01:17And we've seen over time settlement cycles go from T plus 5 to T plus 1, and actually now you
01:23can get closer to instant settlement with certainty.
01:27Because if you know that those assets are sitting here in custody, tokenization can enable you to move them faster
01:34and with certainty,
01:35because a tokenization element is really just representing where is that asset, from a books and records perspective, on a
01:42blockchain.
01:43And a blockchain is an always-on computer, essentially.
01:46So imagine if you had systems that never shut down.
01:50They didn't have batch process.
01:51So what's happening from a books and records perspective, from a tokenization perspective,
01:56is that we can use the handwritten ledgers that Alexander Hamilton wrote for our books and records.
02:02We can use computer systems that do shut down on batch process and restart, just like most do.
02:09Or you can use an always-on system to track all of your assets in custody.
02:14So over time, what we see is tokenization is really about representing real-world assets and securities and so forth
02:22in a way that enables you to mobilize them.
02:25I am curious.
02:25I mean, you're relatively new to BNY, but you've been in the finance industry for a long time.
02:30How much have you seen clients, the complexion of clients, and what they want change over the years?
02:35So clients want certainty of settlement.
02:38They want speed.
02:39And they want to know what they have with us from a custodial perspective.
02:43And that's just basically across the board.
02:45That hasn't changed.
02:46That's basically what it was probably 200 years ago when you guys were founded to today.
02:50Just the assets on top.
02:52Absolutely.
02:52What do I have?
02:53How mobile is it?
02:55Are there insights that you can give me?
02:57And what the blockchain and digital assets enables for our clients is that exact demand, if you will, but with,
03:06again, auditability, programmability, and even customization.
03:10So they often are not asking us, can you please tokenize my assets?
03:15What they're asking is, I would love to do this transaction.
03:18Can you ensure settlement?
03:20Can you ensure certainty?
03:21Can you ensure various things?
03:23And we have the technology and we enable the technology with many of our partners to do this.
03:29Do you find yourself having to be more of the salesperson or are they kind of, do they already know
03:34BNY's reputation and, you know, it's just kind of an easy to close a deal with them?
03:38So I think people come to us because we are trusted.
03:43We are central.
03:43We are the infrastructure for the last several hundred years or 240 years plus, which is remarkable.
03:51So we've played the central role.
03:53And what's amazing is that the firm has evolved continuously and continually over time just to make sure that we
03:59can serve our clients.
04:00And this is in that same vein of the demands are changing, but we're here for them and we're here
04:06for our clients and the transforming capital markets.
04:10I think that there are some clients that know exactly what we're doing and then there are some clients that
04:14say, well, I have my assets with you and I trade with you and I do all these things.
04:18How are you leveraging the latest technologies?
04:21And then we'll share with them as well.
04:24And in many cases, we'll see opportunities.
04:25So what's really amazing about our more of our transformation, if you will, from a product and a platform perspective
04:31is that we enable then the combination of many of the products that we have for our clients.
04:37And it's a combination of the two that in many cases can be linked through new technologies to create better
04:42solutions for our clients.
04:43So clients come to us with problems, if you will, or things they're trying to solve or trends they're seeing
04:49and asking for advice.
04:51And then we can enable those solutions for them.
04:55Typically, clients don't say, I would like the following thing tokenized.
04:58That's rare, but it certainly happens.
05:01And we do sit in a position where we are the central role in so many markets that we do
05:08get asked to help solution with our clients, which is an amazing position to be in.
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