XRP + DTCC, Ripple Declines, CLARITY ACT POSITIVE move, Canton Network Surprise, Stellar Trajectory

[00:00:00]Hey, hey, everybody. It's Eddie from Tokyo. This is your cryptocurrency update from Japan and yesterday was one of Japan's 16 national public holidays.

[00:00:11]How many public holidays in your country? Because where I grew up, which was the United States, we didn't have nearly this many national public holidays.

[00:00:23]It was called Marine Day and it's dedicated to appreciating the sea. I think it's one of the very best holidays in the country. Yes, Umi no hi. Many of us are on edge in regards to the Clarity Act and Eleanor Terrett says that she's hearing multiple industry sources say that the White House has agreed to an ethics package for the Clarity Act and sent the language to certain Senate Republicans this afternoon.

[00:00:52]It's still unclear what the details of the agreement are. She's reached out for comment, but industry participants are hopeful that this could clear the way for the updated bill next to be released soon.

[00:01:08]I still don't think we should take any chances. Yes, John Deaton has a website that has a letter that populates by itself. All you do is add your name, your address, your zip and that form letter fires off to the people in Congress. Yes, he would like to see 10,000 letters go for urgency. I put mine in. I hope you do, too. Darkhorse had a very poignant post. He says there's no such thing as fud, just a different perspective to what you believe and therefore it upsets you because it probably affects your investment. I completely agree. You should always ask, "How could this fail spectacularly?"

[00:01:53]Professional investors, fund managers, and value-oriented legends, they don't dismiss critical analysis as fud. No way, they seek it out. It's called due diligence. I was accused of fud when I uncovered that the whole industry has moved to a stablecoin sandwich. This is Stripe. I've got a clip from this. And yes, Ripple has built their payments business on the stablecoin sandwich. This is where you take fiat, the stablecoin is in the middle as a bridge and fiat on the other end. It is not fud. It is how this space has changed tremendously and it continues to change not only with the technology but with regulation. And AI is one technology that the US government is trying to figure out if they can regulate. Kimmy, which is an AI technology that comes from China, will be releasing its frontier open-weighted model on or by July 27th, downloadable and customizable. No company can be expected to be fully prepared on how fast this AI is evolving.

[00:03:12]I broke some Linqto news on X. They got the court okay to sell 130 million Ripple shares as it prepares for their Chapter 11 exit. Now, Ripple the company has declined its right of first refusal on buying the transfers.

[00:03:32]But we had some other buyers come in.

[00:03:34]Galaxy Digital and Arrington Capital are two of the four. And I forgot to post, but I did later in a comment, what the sales price was. Well, Galaxy paid $68, Arrington Capital paid $80, and the two other entities that came in and bought 60 million and 4 million paid $100 per share. I was interviewed lately by a key member of someone in the ecosystem.

[00:04:04]You're going to see that pop up soon, I'm sure. They came in for WebEx from San Francisco and we sat down and I think they got about an hour's worth of content. And I was trying to explain to them the 10 different sectors within the XRPL community. And one of them uh was the validators. Now, the node validators have their own Yes, they have their own language, they have their own group and clique and issues and Daniel is one of them and he wants to see the current base on the reserve which sits at one XRP to open up an account be reduced. He sees it as a real barrier when you're trying to onboard real users or spin up accounts at scale. He wants to drop it all the way down to 0.1 XRP.

[00:05:00]Yes, I don't know. Um I understand that for someone who is really building on the XRP ledger, this would be a fantastic change. But I get the feeling from what I've seen in their communication, he doesn't have everyone else on board.

[00:05:18]Moving right along to the DTCC, you probably recognize Nadine Shakar now. She is really the face of the DTCC.

[00:05:29]And um she has mentioned that they are chain agnostic. Yes, they have started first with the Canton network and then the DTCC's chain which is on Besu.

[00:05:41]But the Stellar has been mentioned as a chain that they would like to integrate with. They're going to have their big swell like event called Meridian in Lisbon. And that happens on October 28th and 29th. Nadine is going to be speaking at the Stellar Meridian. And no doubt we'll probably hear more about it, but I hope we can hear as to what use case they will use with Stellar. Now, Stellar can do up to 5,000 transactions per second. A little bit more than the XRP ledger. And they have smart contracts and they have privacy. So, they're probably a little bit further ahead than the ledger in terms of being able to host some sort of solution for the DTCC.

[00:06:35]Now, I don't think the XRP ledger is out. As a matter of fact, I think quite opposite. Krypton Rider and Vet addressed this very topic in their most recent video. And yes, they are I think on the same page I am that once the batch amendment is passed through because that will give this atomic settlement capability. And also privacy, the first version of it at least in this 3.3 version on the ledger.

[00:07:07]Uh it's going to probably be set up to be able to handle some sort of solution for the DTCC.

[00:07:16]Don't count the XRP ledger out.

[00:07:19]Now, when it comes to Canton, yes, as most of you know, I am a big fan and I'll tell you why. They are executing like I've never seen before in regards to the traditional finance space. And they had a very good live space in the last 24 hours. This is um so interesting to hear that the last funding round was oversubscribed. That was led by A16Z.

[00:07:50]And they're also going to bring a new retail and music, yes I said music, project to the space, which is great.

[00:07:59]But let me tell you, they are also going to bring a new treasury management solution. There's a company we all know, according to Yuval Rooz, with billions sitting around the world that is not generating any return.

[00:08:17]So, with their privacy and money market funds, this is going to happen with a treasury partner. Who is that treasury partner? I don't know, but they're already servicing thousands of corporations, and Canton will be able to roll out at scale after proving tech and economics make sense and it works. A single integration into this one vendor will enable them to quickly roll out and burning more Canton. You can find the link to it on my X feed, and I've got a wonderful clip for you that's going to take you out.

[00:08:59]So, until next time, do take care.

[00:09:01]Sayonara for now. Bye-bye.

[00:09:04]>> So, treasury management is trying, like treasury management systems are systems that try to give you the right balance between how do you generate as much yield as possible on your money while being able to meet your operational obligations to make payments um to different different people.

[00:09:25]As a lot of companies, because money doesn't move all over the world in real time, and you cannot move from what I would say a cash-like instrument to a yield instrument in real time, what they end up doing is they sit on cash all over the world.

[00:09:43]Because at any given point of time, let's say they need in Japan to pay money, they need in France to pay money, they need in Argentina to pay money.

[00:09:50]And as a result of that, they end up sitting on quite a lot of cash that is not generating any return for them because they need to make these payments all over the world.

[00:10:01]So, we're working with a company that sits on you know, a balance of billions of dollars of cash. And those billions of dollars do not work for the company because that specific company, which everybody would know here, um has a lot of payment obligations at any given point of time everywhere in the world. So, what we said to them is, "Well, now, with Canton, because you have privacy and you have effectively money market funds and cash, you can actually hold a money market fund all the way to the last second when you need to make a payment, you then convert it to a tokenized deposit in real time, and you distribute uh the payment.

[00:10:42]And I'm just going to make the I'm just going to make the the equation very simple. If you sit on a billion dollars of cash, you should be making another 35 million dollars a year in revenue from effectively interest, which you're not doing.

[00:10:57]So, if that company sits on many billions of dollars, we're talking about potentially hundreds of millions of dollars of additional revenue to that company just being able to do treasury management on Canton.

[00:11:10]Now, the reason I'm so excited about this, it's not because of one company.

[00:11:15]This is a problem that is true to every company in the world.

[00:11:20]And the partner that we uh do this with is already servicing thousands of corporations all over the world. So, once we start doing it with this one specific company, which is a very large company, and we prove that the tech works, the economics work, I can see how with this one single partner, we can roll this out to thousands of corporations all over the world. And that, again, translates into a significant amount of burn on Canton.

[00:11:57]And again, this is not something that will take years to roll out. It's a single integration to one vendor that does treasury management to a lot of these corporations. And again, if we prove it with this one very large company, I see this, um, scaling to hundreds, if not thousands, of other corporations fairly quick.

[00:12:20]>> [music] [bell]