00:00AI has been really important to us on this transformation and client onboarding is a great example.
00:06I think in the industry, the average to onboard an institutional client is something like up to 100 days
00:12because teams have to go through hundreds and hundreds of documents.
00:16So this is an area where AI is really helping us and helping our processes, automating our processes.
00:23So one part of that process is research.
00:26We have to do a lot of research when we onboard clients.
00:30And that used to take us a couple of days, and now it takes us 10 minutes.
00:34I want to talk a little bit just about the proliferation of digital assets
00:38and the types of clients that are now coming to BNY for help
00:42and making sure that they have the ease of transaction and, more importantly, the safety associated with it.
00:49So digital assets is clearly one of the megatrends,
00:53and I would say pretty much all our clients are interested in talking about it,
00:57whether they are a private company, a public company, or they're one of the new digital assets companies.
01:04To all of them, though, we provide traditional solutions, traditional assets,
01:09and then it's our ability to be in that intersection of traditional and digital assets.
01:14So obviously stablecoin, tokenization, all very important for us to have.
01:20But this innovation is also about innovating with our current products.
01:25So one product, one platform that I'm very excited about is Collateral One.
01:31It is an integrated platform for our buy-side clients, and it really helps them to optimize their assets,
01:38so both to meet their investment goals but also to lower the cost of funding.
01:42So it's sort of that intersection of securities, finance, liquidity, their derivatives trading counterparties all in one place.
01:54So as we think about innovating, as we think about the role of AI, it's really both on the traditional
02:01side and the digital side.
02:02And I'm really excited that last year our new head of product and innovation came on,
02:10and she really every day looks across all our different products and solutions,
02:15whether they're digital or traditional, and asks the question,
02:18in the combination of the different businesses that we have,
02:22could we create new and integrated solutions that might be unique because of all the businesses that we have?
02:27So as I look ahead, as I look at 2026, a lot of that is continuing to accelerate all the
02:35great things that we've done,
02:37but also bringing more new solutions to market.
02:40As we sit here in the SeaTalk, you can see the remarkable scale that this firm operates at,
02:45and you can see all of the systems and our traditional systems power tens of trillions of dollars of assets
02:52settling and trading every single day.
02:54And then when you combine that with the new and the latest technologies of digital assets and blockchain,
03:00which is a 24-7 programmable always-on, it's pretty amazing what can be done.
03:05That 24-7 nature, is that here now or is that the future?
03:09So we have here at B&Y a B&Y chain, and that is an always-on blockchain that powers
03:16many of our clients inside the house.
03:18It's not a public chain. It's a private permission chain.
03:21And as we connect our scaled systems with that chain, it enables them to enact and do things all the
03:28time, so 24-7.
03:30At the same time, there's a huge opportunity to connect many more assets, other books and records,
03:36and other transactions on-chain 24-7 that we're still in progress of doing.
03:40The push that we've seen into tokenization, how does that actually fit into what you do?
03:45So what's nice when we think about storage, so we are an amazing storage firm.
03:50We store about 60 trillion of assets for our clients. That's custody.
03:53But mobility is about tokenization. It's about the ability to move those assets faster.
03:58And we've seen over time settlement cycles go from T plus 5 to T plus 1,
04:02and actually now you can get closer to instant settlement with certainty.
04:07Because if you know that those assets are sitting here in custody,
04:11tokenization can enable you to move them faster and with certainty,
04:15because a tokenization element is really just representing where is that asset,
04:20from a books and records perspective, on a blockchain.
04:24And a blockchain is an always-on computer, essentially.
04:27So imagine if you had systems that never shut down.
04:31They didn't have batch process.
04:32So what's happening from a books and records perspective,
04:35from a tokenization perspective,
04:37is that we can use the handwritten ledgers that Alexander Hamilton wrote for our books and records.
04:43We can use computer systems that do shut down on batch process and restart, just like most do.
04:50Or you can use an always-on system to track all of your assets in custody.
04:55So over time, what we see is tokenization is really about representing real-world assets and securities
05:01and so forth in a way that enables you to mobilize them.
05:05I am curious.
05:06I mean, you're relatively new to BNY, but you've been in the finance industry for a long time.
05:10How much have you seen clients, the complexion of clients, and what they want change over the years?
05:16So clients want certainty of settlement.
05:18They want speed.
05:20And they want to know what they have with us from a custodial perspective.
05:24And that's just basically across the board.
05:26That hasn't changed.
05:27That's basically what it was probably 200 years ago when you guys were founded to today.
05:31Just the assets on top.
05:32Absolutely.
05:33What do I have?
05:34How mobile is it?
05:35Are there insights that you can give me?
05:38And what the blockchain and digital assets enables for our clients is that exact demand, if you will,
05:46but with, again, auditability, programmability, and even customization.
05:51So they often are not asking us, can you please tokenize my assets?
05:55What they're asking is, I would love to do this transaction.
05:59Can you ensure settlement?
06:00Can you ensure certainty?
06:02Can you ensure various things?
06:04And we have the technology and we enable the technology with many of our partners to do this.
06:09And let's not inform your of the internet.
06:09So let's show you what the cloud is to do this.
06:11So for this challenge, see if you have the cloud.
06:11And I'm going to tell moreoo' 20 허� VERY important.
06:12So they'll come to give me a little desktop or a week of the belle.
06:12So you can see it in other places.
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