00:00So, Dee, maybe we could start with that. Securitize, it's going public on Thursday.
00:03What do you make of this moment? This is, I think, the first tokenized platform to go public.
00:08They're tapping the public markets to possibly raise funds and maybe expand.
00:13That's correct. So, this is a watershed moment for tokenization because it's the first
00:19platform that's going public. I've known Carlos Domingo and followed Securitize's amazing journey
00:24in tokenization for the last seven years or so. And it's tremendous to see them going public.
00:29I mean, this is, we've seen that repeatedly across different lines of business, different
00:34industries, that the infrastructure tends to go public before the volume comes on. So,
00:39Securitize going public is a watershed moment. They are a common infrastructure across all
00:44the three models of tokenization that we've been talking about to our clients. So, this
00:48is absolutely a watershed moment for public market investors' ability to invest in public
00:53companies that are infrastructure in which tokenization is being developed over the next
00:57couple of years. You talk a lot about tokenization, especially in the note that you wrote recently.
01:03You said equity tokenization, which is, of course, moving stocks onto the blockchain,
01:06risked recreating one of Wall Street's biggest historical problems, which is fragmented liquidity
01:11and weak price discovery. So, with those risks, why do you think we're seeing nearly every
01:17major Wall Street firm enter the tokenization game? Sure. So, there are two different aspects.
01:23The fragmentation I talked about was related to equities. We saw this 30 years ago with,
01:29you know, dock pools and proliferated exchanges and ATS venues. And that meant that the same stock
01:35traded on multiple venues and liquidity was fragmented. We fixed that problem through something
01:40called Reg NMS 20 years ago. In crypto markets today, as stocks get tokenized, the same problem
01:47exists. That means the same stock and variations of that stock are trading on different venues and
01:53locations. So, that problem, you know, is a market structure problem that needs to be addressed.
01:57The SEC is working on it, but we're still many years away from fixing that. That's a separate issue
02:02from secretized going public because that's a tokenized infrastructure in which things are being
02:07built. Outside of equities, the fragmentation issue is much less important. So, fixed income,
02:12whether it's BlackRock putting the Biddle Fund on chain, fragmentation issues that are talked about
02:18are much more centered around equities, not across fixed income foreign exchange, real assets that are
02:23also being tokenized. So, on Thursday, when secretized goes public, what are you going to be on the
02:28lookout for? Not necessarily on that day, but how are you going to follow their companies? And maybe if you
02:32have your own key measures of success, given that you've been tracking Carlos Domingo for a while now.
02:38Actually, what I would watch very carefully is think about 24, 36 months ago. The only public
02:43companies that were exposed to the crypto market that public market investors could invest in was,
02:47let's say, Coinbase. And then there were firms like Robinhood that a third of the revenue came
02:52from crypto. Now, we've got firms like Circle. We've got Bullish. We've got Galaxy. We've got Bitco.
02:59We've got now Securidize. That means there's a growing class of public companies that are providing
03:04the infrastructure on which crypto and tokenized assets live. And that broadening of the investor
03:11universe is something I'd be watching. That who are the Fidelities and the Wellingtons and the Black
03:16Rocks and the Straight Street Global Advisors investing meaningful allocations to this new asset
03:21class, which is around crypto infrastructure? That's what I've been watching.
03:24Thank you, everybody.
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