Blackrock CEO Larry Fink: The USD privilege Is Ending-What It Means For XRP Holders

Added: 2026-06-02

[00:00:00]Welcome back to the show, ladies and gentlemen. Check out what we have for you today. Larry Frink just sent shock waves through Washington warning the US dollar's reserve status is a privilege, not a right. And why is he doing that?

[00:00:15]Because Congress is stalling. And the infrastructure for the internet of value is being built right before our eyes.

[00:00:22]And today I'm connecting the dots between BlackRock, the New York Stock Exchange, NASDAQ, the DTCC, Fed Now, and Swift, and the massive move from China to white label the Chinese yuan. This is a global race for domination as the world reserve currency between the United States and China. And we've got that and so much more. Somebody roll that beautiful intro.

[00:00:55]Digital Perspectives with Brad Kines.

[00:00:58]Come on in.

[00:01:05]Welcome back to the show, ladies and gentlemen. Let's get this thing opened up here. We have so much to go over and we're going to try to get through it nice and quick today. Uh good morning, good evening, good afternoon, wherever you are. 72,100 plus for Bitcoin as the market for cryptocurrency collectively sits at 2.54 trillion. It's off 1.7%.

[00:01:24]Ethereum now dipping below 2000 at 1983 and change. Number five spot is XRP at A130. We're off 2.7 on the 24 and we're off 3.9 on the 7day. Range of price between 131 and 135. We'll keep an eye on it and we have some TA to look at before we get out of here. But there's so much we need to cover very quickly and it's all very important. Let's start with this. The Clarity Act. What do we know with the deadline and the timeline to get this thing a scheduled floor vote with the Senate? We know this macro key crypto policy deadline this week, June 2nd. We have the Genius Act for stable coins comment period closing for Treasury. FDIC and Fininsen starting what? Today or tomorrow? Is it today the 1st or Yeah, today's the 1. So that's tomorrow. And then the next day, Wednesday, will be the Senate floor reopens to advance the Clarity Act toward an August signing target. They're saying from Coindes now. So, with that being said, let's get it going, ladies and gentlemen, cuz time is running out and the window is limited, and there is outside pressure that I believe keeps Congress and the Senate from kicking the can down the road any further. Let's start right here. I covered this yesterday, but it's incredibly powerful news, and it is not something that's going to go away. China is reportedly considering a national clearing house for digital yuan transaction to support broader adoption. A national clearing house like the DTCC, but for China's digital yuan.

[00:03:10]Ladies and gentlemen, this not only opens up the door for a broader adoption, this opens the door for China to make moves to white label the Chinese yuan. What does that mean? That means if your country dollar is not very strong, well, you could just use our Chinese yuan and we could settle it on our national clearing house for you and you don't have to use the US dollar. You see what's going on now? This is a moment where, as I have said, the straight of war muse, the 50% of oil that comes out of there goes to China. All of that is a part of what's happening with the Iranian conflict. Yes, we're stopping nuclear proliferation and creating nuclear bombs and all those things.

[00:03:52]That's very important to stop them on that regard. And it looks like we have.

[00:03:56]But the other part of this equation, the other proxy angle to this conflict in Iran is elim is stopping the 50% of oil coming to China so we could bring them to the table and leverage back some of the onshore manufacturing we need to bring from China back on shore. we need to slow them down because they've been proliferating very quickly in the new onchain economy and the Chinese yuan is absolutely trying to compete for dominance over the US dollar as the world reserve currency. So with all of that, what do we understand? The pressure isn't going away. Remember when the secretary of state Marco Rubio said this? Take a listen. Cold War, but it's been about 30 years since there was another superpower on the earth uh that was in conflict with the United States, and we are back in that place. And we need to stop pretending like that's not the case. Now, I hope it's never >> That's exactly right. Now, I need to move this forward just for the sake of time today. Uh he Secretary of State Marco Rubio is absolutely spot on here, but I need to move us to this part right here where he says this. So this way you understand this isn't some YouTuber telling you something to hype you for clicks and views. What I'm telling you is very real. And here's the secretary of state telling you too. Okay. It goes beyond these things that just today today Brazil in our hemisphere, largest country in the Western Hemisphere south of us, cut a trade deal with China.

[00:05:21]They're going to from now on do trade in their own currencies. Get right around the dollar. They're creating a a secondary economy in the world totally independent of the United States. We won't have to talk about sanctions in five years because there'll be so many countries transacting in currencies other than the dollar that that we won't have the ability to sanction them. There it is right there from the Secretary of State. So, this is very real what we're talking about today. This isn't a bunch of hubhub for clicks and views. And what did we just see to coordinate with all of this parallel motion happening together? We saw the con confirmation of Kevin Walsh uh at the Federal Reserve and then here we are a year later and as soon as he's confirmed, President Trump calls for that physical audit of Fort Knox gold reserves.

[00:06:09]A revaluation of all the gold in Fort Knox. Is it is that where we're going?

[00:06:15]Because everybody was like, "Hey, it's been a year since this audit on forks knock. Why have we not done this yet?" I believe, and I'm speculating, I believe that that hasn't been done because we didn't have favor at the Fed because Jerome Pal was obviously not in favor of working with us the way he was with Biden in the previous administration.

[00:06:34]His actions prove that. That's not an opinion.

[00:06:38]And now that we have a new Fed chair, here we go back to the audit of Fort Knox. Look, we're moving to a new golden age. It doesn't have to be physically gold backing the dollar. We've already done that and it didn't work. but moving to a new age where we could have a gold back dollar in a basket sense instead of just gold or just oil with the petro dollar agreement. This is where we're going in a hurry, ladies and gentlemen.

[00:07:05]Now listen to the pinch that's happening because as we move on this macro idea of preserving the US dollar as the world reserve currency and dealing with the proxy war of China trying to get the yuan to be in that position and to take us out of that position. We are dealing domestically at home with the clarity act and the banks that don't want to give up their monopoly. But the problem here is, and they won't say it, but the problem here is is that banks aren't innovators, they're banks.

[00:07:40]So in order for the US dollar to keep its dominance in the new digital onchain economy or the internet of value, we are going to need the private sector in this digital asset industry to do the heavy lifting. Listen to Jamie Diamond's comment right here.

[00:07:56]>> So, you know, this it's complicated and the governments do it thoughtfully. If they don't do it thoughtfully, it will be cause it'll be a huge problem.

[00:08:03]>> So, are you happy with the way the Clarity Act is turning out?

[00:08:05]>> No. No. Because it it it it allows them to effectively pay interest on deposits, stable coins or something like that without the protection that they should have. And it doesn't do anything for AMLBSA. It has almost no legal protections. So, no, it's the banks will not accept it that way.

[00:08:22]>> They won't.

[00:08:22]>> And the ABA, the small banks, the credit unions, it's not just the big guys. Most everything of what Jaime Diamond has said already is absolutely inaccurate.

[00:08:31]>> Not worried about stable coin, but if it happened, I'm telling you, I would have nothing to do with it and it would eventually blow up on its own. Okay. But that's my personal thing, but I do understand the concern of all the other banks. So, >> well, the markup is coming. I mean, what are you going to do about it?

[00:08:44]>> It is. We'll fight it. If we lose, we lose and we'll live.

[00:08:47]>> Yeah. Okay.

[00:08:48]>> But it will be fought. This will not be No, no one's going to bow down to this guy, okay? Or that company.

[00:08:53]>> And he's the only one. And he's spending hundreds of millions of dollars in in Washington in this thing.

[00:08:58]>> He said he's he's representing the whole >> He's full of >> You can see the anger there.

[00:09:05]>> Well, um we're going to watch that one.

[00:09:07]>> Yeah.

[00:09:08]>> Wow. Well, I mean, this is turning into a big fight between the whole, you know, each industry and and and you're talking about blockchain and and and getting blockchain out.

[00:09:16]>> But we do blockchain.

[00:09:17]>> You've been doing that for a long time.

[00:09:17]>> We have connectors. We have J. We're going to do it. I think it's a legitimate technology. They just want to be able to do it and keep the monopoly that they've had, right? That's that's what's going on here. But the scary part of this is that Jamie Diamond and Brian Armstrong and everyone else in this equation clearly understand the dangerous position, the weakened position the US dollar is in, and they're more worried about fighting for the monopoly they've had. It is disgusting what we're watching out of the banks. Fed Governor Christopher Waller, who's a crypto advocate, says stable coins will broaden the reach of US monetary policy globally. Countries that adopt it. It's like a fixed exchange rate system. You are going to import US monetary cost. Look, I mean, this is a Fed governor who understands the proliferation of digital dollar stable coins allows the US dollar to remain dominant in the new digital onchain economy because the race is on.

[00:10:22]He gets it. Now, here's another clip from Jamie Diamond. You got to hear it.

[00:10:26]Take a listen.

[00:10:28]>> Given the fact that the bank has moved forward with some crypto products, uh, adopting some aspects of blockchain, has your opinion about cryptocurrencies changed?

[00:10:37]It's not about cryptocurrencies. We you we're one of the biggest use of blockchain.

[00:10:41]>> I do agree with that about Jamie. Not sorry to pause it, but it's not about digital currencies. It's about the US dollar.

[00:10:48]>> I think blockchains we've been talking about for 15 years. Okay, we're still talking about it. I do think it'll replace financial market infrastructure.

[00:10:56]We have a JP Morgan deposit coin. We can already move money 24/7. But I do think, you know, when when crypto folks point out the weakness of it, they're right.

[00:11:05]You know, you can do a lot of change.

[00:11:07]Make them better. Fed wire could be, you know, the Fed wire is five days a week and, you know, 10 hours a day. It could be why not six days a week, 20 hours a day. Why not seven days a week, 24 hours a day? That's crypto's market.

[00:11:18]>> And real time payments have a huge benefit for people. All true. Crossber costs too much. And we will be part of fixing that. And I'm not that worried about stable coins. I've all I've ever said about that. If you have them, they should have the same rules and regulations as us.

[00:11:31]>> And they do. So the reality is is that he mentioned Fed Wire. Fed wire, the new version of that is Fed Now. And guess who's a part of that? Ripple Treasury connects into Fed Now via Clear Connect.

[00:11:44]And you can go see it yourself. We covered it back when it was announced and we all discovered it. And it's right here, ladies and gentlemen. Ripple Treasury gets integrated with Fed Now through Clear Connect, connecting directly to the Federal Reserves payment rail. That's why it's so important we get that Fed account master account, right?

[00:12:03]to full circle this whole thing. It's just like we need the Clarity Act, too.

[00:12:08]But why am I showing you all this?

[00:12:09]Because he's talking about making Fed wire better, which is really Fed now.

[00:12:13]Yeah. Ripple's in the middle of making that better. It won't be a bank that makes it better. It will be blockchain companies that make it better. It will be private sector innovators that make it better. And why is that? Because we need it for the US dollar dominance in this new internet of value we're moving to. And then there's Swift. Swift is payments and messaging and it's basically messaging for payments is really the better way to say it. But they are they're working with us too.

[00:12:41]>> The we had 45 50 odd commercial banks looking at you know what does blockchain mean. And our early experimentation in 2015 was on ledgers that were available.

[00:12:50]So looking at Bitcoin, looking at Ethereum, looking at Stella, looking at kind of Ripple and kind of all the other blockchains that were available and the solutions that were available.

[00:12:56]>> There you go.

[00:12:57]>> So lots of excitement. The early projects I remember really cool project Genesis. There you have it. So, they're all connected. And why is that? Because we understand the ones that are in this space that really understand why the digital asset space even exists is to help pursue US dollar dominance in the new digital economy we're moving to.

[00:13:18]Don't believe it. It's still true.

[00:13:20]That's why tokenizing of Swift, that's why the tokenization of the New York Stock Exchange, that's why the tokenization of NASDAQ, right? because we make these we take these deep liquid capital equities markets and tokenize them onchain and then we have more use cases to use the US dollar for and assets like XRP to bridge. Now, the European Central Bank, it's not lost on them what's going on with the race between the US digital dollar and the Chinese digital yuan because they say Europe needs a digital euro to combat stable coins. ECB official Isabel Chabo says a digital euro in is Europe's best defense against a rise of US dollarbacked digital money. Now we also know there are two euro stable coins on the XRP ledger right now Euro CV and then there's another one as well and I can't remember but uh this is completing the circle for me because as I have said we need all G20 nations and beyond to have their digital version of their country's sovereign dollars on the XRP ledger moving around like highway like busy cars on a very very fast highway Right. And I think this is a really fitting fitting comment here from Brad Garlinghouse who says this.

[00:14:45]>> And we're increasingly finding how these technologies applied to traditional financial markets are improving efficiency, reducing cost, improving speed. And I think Tradfi is moving more quickly than ever to kind of meet the moment now that you know now that guidance and regulatory dynamics are becoming clear and the winners are going to be the ones who own underlying infrastructure and and uh I think Tradfi sees that and is acting more quickly than ever before. you know, uh, Ripple with the XRP ledger going to own a lot of that infrastructure, too. And they have been building for more than a decade, getting closer to 15 years to be perfectly honest. So, it's quite remarkable the position that we're in.

[00:15:30]Everything that we're seeing with tokenization, at least from my perspective, almost 10 years in this space, is about preserving the US dollar dominance.

[00:15:43]Why do you think we're auditing the gold in Fort Knox? Why do you think we're moving to digital stable coins to begin with?

[00:15:51]This I'm telling you, you know, all of this is about the preservation of the US dollar dominance in the new onchain economy as a world reserve currency and China is seeing it and they're trying to beat it in the race. This is why I said what I said when I interviewed Greg Kidd last year and we talked about and if you don't know Greg Kidd from the Federal Reserve, Greg Kidd also seed investor and and Twitter and Square Pay and all kinds of other things. He's amazing, brilliant investor and he's a brilliant mind. Worked at the Federal Reserve, came to compliance uh to Ripple, one of the first 10 employees. And this was our conversation about keeping XRP designed to underpin the US dollar someday in the future when we get enough of this tokenization of all different sectors of the economy, whether it's the equities market or real estate or everything else that exists once it's tokenized. and you take a piece of that from commodities and equities and so on and you put it in a reserve in a basket and then that becomes the reserve at that's held on XRP ledger that can ultimately turn around and someday underpin the US dollar with a basket of assets from across the entire economy and sectors all the sectors of the economy and then you're never crashing that unless you crash the entire world right so listen to this clip no I well this is Why I love the idea of a basket of assets, right? And and I do mean like gold, oil, and and digital assets alike. I mean, it just makes it stand to me, it stands to reason that that's the way you would want to go. Uh, you know, I had a conversation a long time ago back in 2019 um with David Schwarz where I was talking about with him about, you know, having reserves of all kinds of different assets from all over this sector of, you know, whether it's commodities or al like really stabilizing. If you could underpin the dollar with all of those things instead of just an agreement to print more or just a petro dollar agreement, then you really would have the confidence of a dollar for the next 150 years. What's that say? You >> I agree.

[00:18:05]>> That wasn't very tough.

[00:18:07]>> Well, but I mean you you really said it well. I mean I >> look I have to say I again I talked about this yesterday. I have no idea what these guys are going to say when I pitch these ideas to them about how I see things shaping up.

[00:18:20]Greg Kit is is saying it's spot on. What we're talking about is spot on. And if you look at the fact that you could e issue securities on the XRP ledger, City Bank is projecting tokenized securities market will grow from 17 billion today to 5.5 trillion by 2030 in three and a half years.

[00:18:44]By 2030, we're going to have 5.5 trillion in tokenized assets on Ledger.

[00:18:50]Now, it doesn't say XRP, but you have to ask yourself because we know XRP ledger is designed to issue securities and other assets on the ledger. How much of that will we capture? I don't know the answer to that, but I know it's the goal because if you get enough reserves on it, you can underpin the US dollar with it and then you've got the safest dollar ever. Now, that's why I have to also remind everybody about the DTC's objective going live in July with the test test run. And the test run is with 50 firms which does include Ripple Prime. And that's important because the DTC tokenizes or will will uh settle clear and settle all of NASDAQ, all of the New York Stock Exchange, all the Texas stock exchange once it's open.

[00:19:35]That's what it does. And we know that that's a fact because we have it right here. And we know it because there's Ripple Prime just like the other 49 companies that are involved. We're in there, ladies and gentlemen. And all of this isn't just about tokenizing security so it's easier and faster to do. Yes, on its face, yes, those things will be easier. They will be more cost effective to do these things and efficient. But the larger narrative to it is to tokenize all of our markets and get as much liquidity on ledger as absolutely possible because it is when we get to that point, we can begin to basket these reserves from different parts of the sector of the economy and then we can begin to underpin the US dollar with that. And that's how XRP becomes uh someday a global stable coin that people could refer to as we've talked about in years past versus a digital dollar stable coin from the United States or the Europe or some other place. Right? That's the goal, ladies and gentlemen. And here is a very, very stark warning from Larry Frink about how Congress needs to understand that the US dollar as a world reserve currency is a privilege, not a right, and we can lose it if we're not careful. This is Larry Frink, CEO of Black Rockck, 11 trillion assets under management. This is no joke, ladies and gentlemen. This is where we are today.

[00:21:02]We need to have every member of our government to wake up to the idea that this these deficits are threatening our future. They're threatening the value of the dollar. Let's be clear. If we did not if we were not the >> the country whose currency is the currency of the world, we would not be able to have these deficits, you know.

[00:21:25]But because we are the currency for the world, we are we are accorded a privilege that no other country is accorded. We should not lose sight. It is a privilege. It is not a right. And I think too many men and women in Congress believe it's a right, not a privilege.

[00:21:46]And I think we're jeopardizing that right.

[00:21:48]>> And it's not permanent. And I think we get away with it because there's no alternative. Right.

[00:21:52]>> Well, uh there there is one, but you're not going to want it cuz China's yuan comes along with a social credit score and massive surveillance.

[00:22:01]>> But as we move towards more crypto strategies, more stable coin, I was in Asia two weeks ago and you know, the countries are all talking about creating their own stable coin because they're worried about the do the increased dominance of of having a dollar stable coin worldwide. So they're all going to start their own getting back to they're going to focus on their own economy and they're going to digitize and create their own stable coin and digitization of their currency. So there are and you know and I do believe things like Bitcoin will play a big role in this too. And I know you know the our government is very in favor of this. We just had the genius act that was signed last week. But the reality is >> names.

[00:22:44]But but but if we don't handle this properly, we are going to lose this right. We need to >> if we don't handle this properly, we're going to lose this right.

[00:22:57]You think the same thing can't happen here at home because you've never witnessed it. The same thing that happened to Venezuela or the same thing that happened to Cyprus or the Weimar Republic. You know, look, you know, this leaves us right here. Even David Schwarz answered it and fielded it uh just a couple years ago. Can two currencies exist as a world reserve currency at the same time?

[00:23:26]Do you believe that there can be two uh existing world reserve currencies to I mean to to simultaneously exist?

[00:23:40]I I do and I think that could happen. I think it's quite realistic that a lot of the world is just done with the dollar as their reserve curren currency. I think and I think that there's a lot of places that are are willing to try something else. And you know, one of my one of my scenarios, and I don't think again, I don't think it's going to play out quickly, but like one of my wildcase success scenarios for a digital asset is if countries start to realize that the US dollar is not going to be the reserve currency forever, other things are going to be the reserve currency. And and the same thing that we saw with banks like people when I when we started selling software to banks people would say to me you know why would a bank use something that like you guys were selling them when they could use something that was like made by banks and what they didn't realize is that you know only like 10 banks in the country in on the planet are Deutsche Bank HSBC credit Swiss JP Morgan Chase like the ones who would build a system that the entire planet would run on. For the rest of the banks, that's 6,000 smaller banks, those are their biggest, strongest competitors.

[00:24:43]Those are the entities they hate the most. They would not want to use the system built and maintained by them because it's going to be biased in favor of them, their biggest and strongest competitors. And I think the same thing could happen to nations. Like every nation would love for their currency to be the world reserve currency. That's helped the US, you know, that's grown the US economy quote unquote unfairly by leaps and bounds for decades. and every other country be like, "Yeah, we'd like to have the world be the world's reserve currency." But the only countries that could possibly pull it off is the US holding its position, you know, maybe the EU, maybe Russia, you know, maybe maybe one or two others, but realistically, most countries know that if there's going to be a new world reserve currency that's a country's currency, it's not going to be them. And so, they might actually prefer a currency that nobody can control to one that's controlled by their largest geopolitical rivals. And so that's like what I think is the biggest possible success scenario for for the for digital for you know for digital assets if these countries are like okay well the US dollar can't hold on forever but it's not going to be our currency because no one's going to want to repeat the US dollar scenar you know nobody but the EU wants the EU to replace the dollar right nobody but Russia wants the ruble to replace the dollar nobody but China wants the you know the yuan to replace the dollar so maybe they could settle on a currency that nobody control could control rather than one controlled by their most powerful geopolitical rival.

[00:26:05]So if you want a success scenario, that's the one that I think is the most likely.

[00:26:08]>> But the money question is how do you get everybody to agree?

[00:26:14]>> Well, David's not going to answer this the way I would, but you pre-allocate XRP from the escrow to them through option contracts.

[00:26:24]That's how you get everybody to agree because the world won't agree something's money unless you give them all some, right?

[00:26:32]Well, I mean they might agree on they might agree if the alternative is that their geopolitical rivals force some new replacement for the dollar that that's not you know that that just if they just replace you know the old boss with a new boss >> US dollar gets replaced by the Chinese yuan old boss for a new boss nobody wants that >> if the choice is no boss you know if that happens to make a bunch of cryptocurrency people rich I don't think that's they're going to see that as too much of a minus >> yeah I don't think they will either It was great talking to you.

[00:27:02]>> Yeah, I don't think they will either.

[00:27:03]Shout out to David Schwarz. Uh, again, looking at TA, you know, all I have to say is is everybody's freaking out wondering if it goes to 78 cents or a$180, and all I can think about is preserving the US dollar dominance as a world reserve currency. I could care less, but I appreciate all of these people that do this work. Egg Crypto is an OG in this space. I'm not dogging him at all. He's doing this so people understand where the noise in the channel is, right?

[00:27:34]All the targets are still on the table, but for me, I'm able to remain calm and I don't get jammed up whether we're a$180 or 78 cents because I'm here for the larger story, which is the XRP ultimately becoming the underpinning of the US dollar going forward in the future and remaining dominant for the next 150 200 years. Now, there's a road in front of us to get that done, but I think it starts with tokenizing the New York Stock Exchange, NASDAQ, Swift, and everybody else in play, Fed Now, and all the banks, and everything to go with it.

[00:28:10]And once it's on chain, then we can really start talking about where we're going in this internet of value and what it'll mean for the US dollar and digital assets like XRP. Look, it's not financial advice for me or anyone else.

[00:28:24]It's just my digital perspectives.

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[00:29:18]I hope you will join us today. Click that link below in the description box and join us in the Freedom Zone or the DPMG, which is open right now, and you will get so much more. There's no question about it. So, we're going in right now. So, not financial advice from me or anyone else. Come on in.