Why The Stellar Lumens XLM Token Will Be Valuable...... 99% Of People Still Don't Get It!!

[00:00:00]Welcome back ladies and gentlemen.

[00:00:02]Robert here and today I want to take a look at an interview that was conducted by the CEO of the Stella Development Foundation Dell Dixon with Franklin Templeton's Sandy Cal that we've actually had the pleasure of interviewing ourselves.

[00:00:19]And just like in our interview, the role of the Stella Lumen's token as it relates to the world more broadly accessing this innovation that is distributed ledgers in the interview that Danell conducted became very apparent and I want to spend a little moment with you guys on that. We'll talk about why and what came out of the interview DTS are getting adopted.

[00:00:46]Whether that's the cost savings that are often to the clients um but also operational or whether that's the sort of uh innovation that takes us from 24-hour settlement to minute settlement. Um and really the important thing for me to do is highlight the role of the token in all of that. So crypto is suffering a bit of a kind of crisis at the moment in the sense that these tokens need to find their identities. There's probably about 99% of the overall cryptocurrency space that's token has no real purpose, usage or fundamental driver. Whereas I believe something like Stella Lumens is very different in the sense that it is the enabling piece that the XLM token to this onchain world. And I think this interview with Franklin Templeton that the Cell Development Foundation conducted really solidifies that. I'd spoke to Sandy Cal previously about how she views these digital commodities, these cryptocurrencies. Stellar is absolutely one of those. Remember Franklin Templeton really the first people to put a tokenized money market fund on chain.

[00:01:53]They did that at a time of nothing short of regulatory persecution against regime. You know, this is precoid, pre the pandemic. They really are pioneers and I think pioneers and I think really understand the role of uh cryptocurrencies probably better than anyone. So first of all, let's just talk about the kind of revolution to the cost of financial transactions that Stellar enables for Franklin Templeton.

[00:02:19]>> One of our main arguments for doing this was that tokenization would increase financial inclusion and be able to offer the ability to hold money market funds directly to a broader group of individuals. So we had to do all that extra work just to get the SEC comfortable uh with our ability to run this process. But I think that you know it was the the decades of ongoing relationship uh where we had been a transfer agent for a very long time. the SEC had a lot of confidence that we did really understand the industry uh and the job and the requirements and that you know we would be using new technologies but it wasn't that we were new to the process. Uh so I think that's what also helped is that we were a very reliable partner that was offering them a path to also start to see how some of these technologies could benefit the broader community and and that sidebyside pilot we ran Dell was really powerful in that we did 50,000 transactions and those transactions were costing a $1.50 each on the traditional transfer agent system. So, $75,000 uh to do those 50,000 transactions, all of which went to the expense ratio of the fund versus we did the same 50,000 transactions with you on Stellar for A13. Like $75,000 versus A13 is a pretty powerful statistic for regulators to be convinced that this technology could be very beneficial for underlying users and consumers. There is absolutely no doubt or there should be no doubt in anyone's minds in regards to why this technology is going to be adopted certainly for financial instruments.

[00:04:10]Stellar have been pioneering this for decades. The DTCC news for some was a recent revelation for us. We've been looking at how secury that were then acquired by DTCC have been using Stella for years when many others wouldn't even dare to approach the space. You know, Stellar really understands where this technology is going. They're enabling it and they've really pioneered or been used to pioneer the financial space. I mean, talk about $75,000 versus $1, whatever.

[00:04:44]Think about that saving across the board. And that $75,000 is taken out of the uh sort of fund as an expense. So it's it's it's fees for for the users of the funds effectively that can now be saved. Think about the thousands the millions the billions in fact that get unlocked when this technology is adopted broadly and that absolutely is going to happen because of those cost savings.

[00:05:10]We'll listen to a time kind of saving towards the end and what is the most valuable thing in the world is time. We all think we have an infinite amount of it but we really don't. Um, let's just look at the role the token is going to play in this sort of world. As said by the pioneers of enabling this world or one of them, Franklin Templeton, the token is needed. You have to hold the token in Stella's case to access this onchain reality. Let's get into this.

[00:05:37]>> When you think about like the freeze functionality, the clawback functionality, the authorization uh of the individual at the protocol level, how does that differ at the protocol level versus in a smart contract?

[00:05:49]because you've now worked with both.

[00:05:51]>> Yeah. So at the protocol level, you know, there there are a lot of differences. There's differences in the verification methodology.

[00:06:00]There's differences in how uh verification is distributed in terms of who gets to verify trades. There's differences in how you can limit the wallets that you interact with. There's differences in how programming languages, right? there's multiple programming languages that people use.

[00:06:21]Um, and and I think the biggest learning we had as an organization is that each protocol also has its own currency that you need to pay in. So, you know, when we were going to be recording transactions on Stellar, we need lumens.

[00:06:37]If we're going to be recording transactions on Ethereum, we need Ether.

[00:06:41]And all of the sudden, here's a traditional financial services firm that is now holding these cryptocurrencies in our treasury because we need to fund some of our operations with these cryptocurrencies.

[00:06:55]And that really made us realize that we needed to be able to run our own node operations. that to really be a responsible player in the system we had to run our own node operations because we needed to be inside of that um system so that we are seeing the transactions as they're coming through to ensure the operational integrity of our own platform. So it was a lot of series of learnings to engage with a protocol and even today we continue to find each protocol that comes along that we determine to connect to has its own unique aspects to it uh and its unique challenges that is very different than the smart contracts. the smart contracts are more templatebased and once you begin to operate at the smart contract level uh there's a lot more standardization there's a lot more interoperability um and so you know that becomes much more about making sure that you have good understanding of the requirements that you are looking to ensure and the parameters that you are willing uh to allow that is not so much about changing the way you operate, that's about more product definition. So, they're very different pursuits, but you know, you really have to build up your experience in both because there's a lot of nuances people don't expect until you're really inside that process, right?

[00:08:24]>> So, the there's major question marks around tokens. For me, the Lumen's token has a very clear place.

[00:08:31]There's very clear partnerships that have been formed and use cases that are, you know, imminent. Talk about DTCC and stuff like this. That's the role the Lumen's tokens play. So, if anybody wants to, and it seems like they're all going to have to if they want to stay relevant in this modern world, utilize distributed ledgers. They're going to need tokens to access that in most cases. And Stella's positioning is perfect. the Lumen's token I think when this kind of I hate to use this term but switch has been flipped becomes very very desirable and I haven't even gone into with you guys how actually the Lumis token gets burned could become deflationary uh in many regards um and then we could get into the whole tokconomics and what's what that kind of means but anybody looking to leverage this technology needs to own a piece of it Franklin Temple can go even further and look to um actually run a node to help sort of uh service it but but also get an insight into it. Final clip is just about the time savings. It's very clear DTS are going to get adopted.

[00:09:33]Stella's already there. We're yet to see that in any kind of globally entrenching manner which is coming. Imagine what the Lumen's token as far as value is going to be in that reality. I think we've got a bit of chop to get through and then we're there guys. Let's get into this.

[00:09:49]remember the team telling one story when when they had a question similar to that like how long will it take a transaction to settle and they were like we estimate between 10 and 15 seconds and and the person kept saying no no no to settle to settle right like they couldn't even conceive of the fact that that was really the answer >> well let me ask you there the 10 to 15 seconds to settle as opposed to a normal settlement process which was >> t plus one >> yeah t plus t one entire day. So, a minimum of 24 hours, right? Um, so yes, I can guess where 10 to 15 seconds was shocking. But today, 10 to 15 seconds feels incredibly long, right? So, you know, it's it's amazing how quickly these technologies are advancing.

[00:10:35]>> Guys, it's very obvious why this technology is going to get adopted. The reality as it relates to crypto is 99% of cryptocurrencies are going to die.

[00:10:43]Stellar, I don't believe, is going to be a part of that culling. Um, and I think 10 years from now, Stella could be one of the most valuable assets in the world. That's it for me. I'm going to love and leave you. Thanks for watching, guys.