1 00:00:02,720 --> 00:00:13,960 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:18,640 --> 00:00:21,840 Speaker 2: Hello and welcome to another episode of the Odd Thoughts podcast. 3 00:00:22,040 --> 00:00:23,480 Speaker 2: I'm Tracy Alloway. 4 00:00:23,160 --> 00:00:23,880 Speaker 3: And I'm Joey. 5 00:00:23,920 --> 00:00:24,960 Speaker 4: Isn't thal Joe? 6 00:00:25,000 --> 00:00:26,960 Speaker 2: It is April here in New York. 7 00:00:27,000 --> 00:00:27,479 Speaker 4: That's right. 8 00:00:27,880 --> 00:00:31,840 Speaker 2: It is my ten year anniversary at Bloomberg this month. 9 00:00:32,120 --> 00:00:32,640 Speaker 4: This month. 10 00:00:32,880 --> 00:00:34,880 Speaker 3: Oh, that's awesome. You're going to get a pilon. 11 00:00:34,960 --> 00:00:35,360 Speaker 4: That's great. 12 00:00:35,760 --> 00:00:38,200 Speaker 2: It's put me in a very thoughtful mood a whole 13 00:00:38,240 --> 00:00:42,600 Speaker 2: decade since Joe tricked slash enticed me into coming here. 14 00:00:43,040 --> 00:00:43,440 Speaker 1: So thank you. 15 00:00:43,680 --> 00:00:44,200 Speaker 4: Are you're happy? 16 00:00:44,400 --> 00:00:45,919 Speaker 3: Are you happy about how it worked out? 17 00:00:46,040 --> 00:00:49,320 Speaker 2: I I can't complain. I will say it was a 18 00:00:49,320 --> 00:00:51,599 Speaker 2: bit rocky in the beginning, but we worked it out 19 00:00:51,800 --> 00:00:55,920 Speaker 2: where going okay. In that ten years, a lot of 20 00:00:56,040 --> 00:01:01,800 Speaker 2: things that I would never have expected to happen have happened, Yes, 21 00:01:01,960 --> 00:01:05,280 Speaker 2: go on. One of them is the phenomenal growth of 22 00:01:05,319 --> 00:01:08,839 Speaker 2: the crypto industry. So I first started writing about bitcoin 23 00:01:09,000 --> 00:01:13,039 Speaker 2: in twenty eleven, and I will openly admit that I 24 00:01:13,080 --> 00:01:16,679 Speaker 2: think by like twenty thirteen, I had written I think 25 00:01:16,760 --> 00:01:19,800 Speaker 2: like three or four obituaries for bitcoin as well, So 26 00:01:20,000 --> 00:01:22,440 Speaker 2: you know I got that wrong clearly. But one of 27 00:01:22,440 --> 00:01:25,280 Speaker 2: the other things I got wrong on crypto is the 28 00:01:25,360 --> 00:01:29,240 Speaker 2: phenomenal growth of stable coins. Yeah, so you look at 29 00:01:29,280 --> 00:01:33,479 Speaker 2: something like Tether, the world's biggest stable coin. We talk 30 00:01:33,560 --> 00:01:37,160 Speaker 2: about it in the same sentence nowadays as euro dollars, 31 00:01:37,360 --> 00:01:40,840 Speaker 2: for instance, and the company itself is this huge player 32 00:01:41,040 --> 00:01:45,080 Speaker 2: in financial markets, like it owns more t bills nowadays 33 00:01:45,120 --> 00:01:47,880 Speaker 2: than some countries, which is all pretty amazing. 34 00:01:48,120 --> 00:01:51,240 Speaker 3: Well, let's be honest for a second here. You know, 35 00:01:51,360 --> 00:01:53,360 Speaker 3: you might have thought that Tether wouldn't even exist at 36 00:01:53,360 --> 00:01:56,680 Speaker 3: this point because it had a reputation for years and years, 37 00:01:56,680 --> 00:01:59,040 Speaker 3: like there are a bunch of scammers. They can't pass 38 00:01:59,080 --> 00:02:01,000 Speaker 3: an audit, the money is there, et cetera. It's going 39 00:02:01,080 --> 00:02:02,640 Speaker 3: to go away. Why would you ever hold it Tether? 40 00:02:02,760 --> 00:02:05,080 Speaker 3: We have Sam bankman fried that years ago. Why would 41 00:02:05,120 --> 00:02:06,800 Speaker 3: you hold Itchether when there are other companies that have 42 00:02:06,880 --> 00:02:09,600 Speaker 3: done audits, et cetera. There are many people not only 43 00:02:09,680 --> 00:02:12,800 Speaker 3: setting aside the size, setting aside all of the assets 44 00:02:12,840 --> 00:02:15,280 Speaker 3: that it owned the back, you know the world's most 45 00:02:15,280 --> 00:02:17,799 Speaker 3: popular stable coin. There are many people who just thought 46 00:02:17,880 --> 00:02:19,840 Speaker 3: of this company can't continue so totally. 47 00:02:19,840 --> 00:02:22,120 Speaker 2: The other thing I thought was that US officials were 48 00:02:22,120 --> 00:02:25,120 Speaker 2: never going to grow comfortable with the idea of a 49 00:02:25,200 --> 00:02:29,240 Speaker 2: loosely regulated foreign company creating synthetic dollars. But you know, 50 00:02:29,320 --> 00:02:32,720 Speaker 2: the Trump administration seems to have some other ideas, so 51 00:02:33,360 --> 00:02:34,320 Speaker 2: we should talk about all that. 52 00:02:34,360 --> 00:02:34,800 Speaker 4: Let's do it. 53 00:02:34,919 --> 00:02:35,800 Speaker 3: You'k a perfect guest. 54 00:02:35,880 --> 00:02:37,600 Speaker 2: We do have the perfect guest. We're going to be 55 00:02:37,600 --> 00:02:41,160 Speaker 2: speaking with Tether CEO, Paolo our do we know he is, 56 00:02:41,200 --> 00:02:44,320 Speaker 2: of course the head of the world's largest stable coin. 57 00:02:44,400 --> 00:02:46,440 Speaker 2: So Paolo, thank you so much for coming on the show. 58 00:02:46,760 --> 00:02:49,000 Speaker 4: Thank you for having me. I'm very excited to be 59 00:02:49,040 --> 00:02:49,560 Speaker 4: here today. 60 00:02:50,280 --> 00:02:54,119 Speaker 2: So just to begin, has Tether's growth surprised you? Did 61 00:02:54,160 --> 00:02:57,480 Speaker 2: you ever expect to ramp up to this degree? 62 00:02:58,040 --> 00:03:02,920 Speaker 4: So I joined Tether very early, was early twenty fifteen, 63 00:03:03,040 --> 00:03:05,520 Speaker 4: just after a couple of months that was actually created, 64 00:03:06,120 --> 00:03:10,680 Speaker 4: and we were discussing internally, myself and Giancarlo, and we 65 00:03:10,680 --> 00:03:14,359 Speaker 4: were asking ourselves the biggest number we could think about 66 00:03:14,360 --> 00:03:17,280 Speaker 4: in terms of growth and projection of growth of our 67 00:03:17,360 --> 00:03:22,000 Speaker 4: stable coin was between one hundred million dollars and one 68 00:03:22,000 --> 00:03:25,240 Speaker 4: billion dollars, and now today is one hundred and forty 69 00:03:25,240 --> 00:03:29,040 Speaker 4: four billion dollars in total issue tokens. So we are 70 00:03:29,600 --> 00:03:33,160 Speaker 4: incredibly excited, we are impressed ourselves. But I must say 71 00:03:33,200 --> 00:03:36,520 Speaker 4: that it's all happened organically over a decade. 72 00:03:37,360 --> 00:03:40,160 Speaker 3: The stable coin business is so sick, it seems to 73 00:03:40,200 --> 00:03:42,760 Speaker 3: me right, because you hold all of these assets that 74 00:03:42,880 --> 00:03:46,440 Speaker 3: back one to one, these tokens that move on blockchains, 75 00:03:46,760 --> 00:03:50,120 Speaker 3: and you collect all this interest and the holders of 76 00:03:50,160 --> 00:03:53,640 Speaker 3: the coins don't collect any interest. According to a release 77 00:03:53,840 --> 00:03:58,040 Speaker 3: on Tether's on website, you made thirteen billion dollars in 78 00:03:58,160 --> 00:04:02,320 Speaker 3: twenty twenty four. Various estimate have your total employees somewhere 79 00:04:02,320 --> 00:04:05,240 Speaker 3: a little bit below two hundred, so that makes per 80 00:04:05,280 --> 00:04:09,320 Speaker 3: profit employees somewhere close to ninety million per employee. Like, 81 00:04:09,560 --> 00:04:11,880 Speaker 3: there's basically correct math that this is like one of 82 00:04:11,960 --> 00:04:15,720 Speaker 3: the most extraordinary, maybe the most profitable business in the 83 00:04:15,760 --> 00:04:16,680 Speaker 3: history of business. 84 00:04:16,920 --> 00:04:21,240 Speaker 4: Yeah, I think it's definitely extraordinary. I define TETA at 85 00:04:21,279 --> 00:04:25,240 Speaker 4: once in a century company because of the capital that 86 00:04:25,279 --> 00:04:27,800 Speaker 4: we have given our profits. In the last two years 87 00:04:27,839 --> 00:04:31,080 Speaker 4: and a half, we made around twenty billion in profits, 88 00:04:31,520 --> 00:04:34,840 Speaker 4: and we almost distributed well, we distributed a very very 89 00:04:34,839 --> 00:04:39,320 Speaker 4: tiny part to their shareholders. I mean a name, another company, 90 00:04:39,360 --> 00:04:43,000 Speaker 4: another fund or whatever that distributed less than I know, 91 00:04:43,040 --> 00:04:45,840 Speaker 4: ten percent or probably even less than five percent of 92 00:04:46,120 --> 00:04:49,320 Speaker 4: profits to their own their own shareholders. So that is 93 00:04:49,360 --> 00:04:53,080 Speaker 4: something that is unprecedented and it's you know, it's set 94 00:04:53,200 --> 00:04:56,159 Speaker 4: in TET to be able to reinvest ninety five percent 95 00:04:56,160 --> 00:04:59,719 Speaker 4: of its profits in keeping growing its distribution network for 96 00:04:59,800 --> 00:05:02,800 Speaker 4: the US dollar and also investing in other pretty cool 97 00:05:02,839 --> 00:05:05,880 Speaker 4: things from artificial intelligence, bigon mining, and the tens of 98 00:05:05,880 --> 00:05:07,520 Speaker 4: other opportunities around the world. 99 00:05:07,839 --> 00:05:12,039 Speaker 2: So you mentioned distribution of the US dollar, and there 100 00:05:12,120 --> 00:05:15,040 Speaker 2: is some tension there right. I mentioned earlier that I 101 00:05:15,080 --> 00:05:18,279 Speaker 2: never thought regulators were going to be okay with someone 102 00:05:18,360 --> 00:05:22,520 Speaker 2: basically creating a synthetic dollar that can trade around the world. 103 00:05:22,960 --> 00:05:26,680 Speaker 2: But times have changed and some things are shifting on 104 00:05:26,720 --> 00:05:30,479 Speaker 2: the regulatory front. But are you a competitor to the 105 00:05:30,600 --> 00:05:33,320 Speaker 2: US dollar? Plenty of people would say you are, or 106 00:05:33,400 --> 00:05:35,920 Speaker 2: are you something that perhaps complements it. 107 00:05:36,680 --> 00:05:39,159 Speaker 4: I don't think we are a competitor to the US dollar. 108 00:05:39,640 --> 00:05:44,840 Speaker 4: USDT is a digital dollar that is backed for most 109 00:05:44,839 --> 00:05:48,679 Speaker 4: of it by US treasuries. We are bringing the US 110 00:05:48,680 --> 00:05:51,640 Speaker 4: dollar out there in the emerging markets to developing countries. 111 00:05:52,279 --> 00:05:56,360 Speaker 4: We have as of today more than four hundred million users, 112 00:05:56,480 --> 00:05:59,400 Speaker 4: actually will be five hundred and fifty million users. I'd 113 00:05:59,440 --> 00:06:02,080 Speaker 4: like to be a bit more conservative to avoid double 114 00:06:02,120 --> 00:06:05,200 Speaker 4: counting users, so I would say more than four million users. 115 00:06:05,600 --> 00:06:08,920 Speaker 4: We grow at the pace of thirty million new users 116 00:06:08,960 --> 00:06:11,800 Speaker 4: per quarter. That is again, we are not Facebook. We 117 00:06:11,839 --> 00:06:15,800 Speaker 4: are just a digital dollar. So it's really unprecedented and staggering. 118 00:06:16,279 --> 00:06:20,200 Speaker 4: The reason why we are interesting for the United States 119 00:06:20,240 --> 00:06:23,120 Speaker 4: and the regulators are now appreciating who we are and 120 00:06:23,160 --> 00:06:25,880 Speaker 4: what we are doing is the fact that we have 121 00:06:26,000 --> 00:06:28,880 Speaker 4: been building the biggest distribution actor for US dollar in 122 00:06:28,920 --> 00:06:31,360 Speaker 4: a physical form and a digital form. We have millions 123 00:06:31,400 --> 00:06:34,640 Speaker 4: of touch points around the world in the emerging market. 124 00:06:35,000 --> 00:06:39,280 Speaker 4: We never approached our distribution going through institutions in the 125 00:06:39,279 --> 00:06:43,760 Speaker 4: emerging markets, but we build physically infrastructure from chosts in 126 00:06:43,839 --> 00:06:48,120 Speaker 4: villages in Africa to bodegas in southern South America. And 127 00:06:48,160 --> 00:06:53,080 Speaker 4: again we are just distributing a digital dollar. And look, 128 00:06:53,200 --> 00:06:57,920 Speaker 4: the reality is that the US dollar hegemony is very, 129 00:06:58,000 --> 00:07:01,200 Speaker 4: very important for United States. And when we are in Africa, 130 00:07:01,279 --> 00:07:03,279 Speaker 4: when we're in Central South America, there is not much 131 00:07:03,400 --> 00:07:06,760 Speaker 4: US presence. There is actually there is press and apart 132 00:07:06,920 --> 00:07:10,840 Speaker 4: maybe McDonald's, but in some countries in Central South America, 133 00:07:11,560 --> 00:07:14,640 Speaker 4: the actual presence of infrastructure in the United States is 134 00:07:14,720 --> 00:07:18,480 Speaker 4: not there. So what Tata is doing in those countries 135 00:07:18,640 --> 00:07:23,160 Speaker 4: is purely building that infrastructure and trying to in a 136 00:07:23,160 --> 00:07:25,440 Speaker 4: way combat Actually more than in a way, it's we 137 00:07:25,560 --> 00:07:30,040 Speaker 4: are i think, the last stronghold before the very strong 138 00:07:30,160 --> 00:07:34,440 Speaker 4: push towards diedalarization made by the bricks countries. So we see, 139 00:07:34,440 --> 00:07:36,960 Speaker 4: for example that in Central South America or in Africa, 140 00:07:37,040 --> 00:07:42,840 Speaker 4: there are hospital, schools, libraries, and airports that are building 141 00:07:42,960 --> 00:07:46,440 Speaker 4: the built by China. And again there is an interest 142 00:07:46,440 --> 00:07:49,320 Speaker 4: from breeks countries to launch a digital currency backed by 143 00:07:49,360 --> 00:07:53,000 Speaker 4: gold plus. There are building an infrastructure in these countries, 144 00:07:53,280 --> 00:07:56,000 Speaker 4: So all the employees, all the people that will rotate 145 00:07:56,320 --> 00:08:00,680 Speaker 4: and gravitate around these new infrastructures built by bridge countries, 146 00:08:01,120 --> 00:08:03,920 Speaker 4: we'll start using something that is not the US dollars. 147 00:08:04,000 --> 00:08:07,040 Speaker 4: So I think it's becoming very very clear that actually 148 00:08:07,160 --> 00:08:09,600 Speaker 4: Tatter is the best of life for the United States. 149 00:08:09,880 --> 00:08:12,880 Speaker 4: Is the company when we are also in these countries. 150 00:08:12,920 --> 00:08:15,440 Speaker 4: We are not seeing NGOs, we are not seeing charities. 151 00:08:15,520 --> 00:08:18,320 Speaker 4: We are the company that also solved or is solving 152 00:08:18,360 --> 00:08:20,880 Speaker 4: financial inclusion in the strongest way possible. 153 00:08:21,320 --> 00:08:23,680 Speaker 2: Joe I got to say, it's a little bit depressing 154 00:08:23,800 --> 00:08:26,360 Speaker 2: that you know, a company that was founded by an 155 00:08:26,360 --> 00:08:30,240 Speaker 2: Italian in Europe incorporated in the BVII. Although I think 156 00:08:30,240 --> 00:08:35,240 Speaker 2: you're moving to El Salvador is the ambassador for US. 157 00:08:36,840 --> 00:08:39,960 Speaker 3: Against the end of the dollar. Well, history can be 158 00:08:40,040 --> 00:08:43,640 Speaker 3: funny in that respect. Why haven't you ever been audited. 159 00:08:44,120 --> 00:08:47,680 Speaker 4: So in the past administered with the past administration last 160 00:08:47,760 --> 00:08:51,240 Speaker 4: four years, I must say that was not easy to 161 00:08:52,000 --> 00:08:57,439 Speaker 4: deal with the past again administration. So I remember Senator 162 00:08:57,480 --> 00:09:03,560 Speaker 4: Warren sending letters around to different organizations. There was a 163 00:09:03,600 --> 00:09:06,839 Speaker 4: case of the Operation Truck point two point zero that 164 00:09:07,280 --> 00:09:11,520 Speaker 4: was very aggressive towards the banking industry that was supporting 165 00:09:11,520 --> 00:09:16,440 Speaker 4: cryptocurrency companies. On the other side, that letter also scared 166 00:09:16,440 --> 00:09:20,640 Speaker 4: away and was targeted towards the Big four auditing firms 167 00:09:20,679 --> 00:09:24,320 Speaker 4: and other auditors. That where then this incentivized to go 168 00:09:24,440 --> 00:09:27,560 Speaker 4: against the will, the strong will of an administration that 169 00:09:27,760 --> 00:09:29,360 Speaker 4: was really against crypto in general. 170 00:09:30,120 --> 00:09:33,560 Speaker 3: Just real quickly. So obviously you hold your money or 171 00:09:33,640 --> 00:09:36,400 Speaker 3: a lot of your the assets the holder with counter Fitzgerald, 172 00:09:36,440 --> 00:09:39,559 Speaker 3: It's former CEO, Howard luck Nick now the Commerce secretary 173 00:09:40,000 --> 00:09:43,040 Speaker 3: friendly with the administration. There has been this changing of 174 00:09:43,080 --> 00:09:46,600 Speaker 3: the guard. Has the changing of the guard at the 175 00:09:46,679 --> 00:09:51,280 Speaker 3: administration level had any bearing on the reason that you're 176 00:09:51,320 --> 00:09:53,880 Speaker 3: here in New York City and comfortable visiting the US. 177 00:09:54,440 --> 00:09:58,120 Speaker 4: So I was been always comfortable to visit the US, 178 00:09:58,120 --> 00:10:01,439 Speaker 4: but you won't usually to go where what you are 179 00:10:01,480 --> 00:10:04,680 Speaker 4: doing for ninety seven percent of your time or eighty 180 00:10:04,679 --> 00:10:07,200 Speaker 4: percent of your time given sleep in a few hours 181 00:10:07,800 --> 00:10:10,640 Speaker 4: is being accepted and is not considered a very bad 182 00:10:10,720 --> 00:10:13,120 Speaker 4: thing by the administration. Right, So you want to deal 183 00:10:13,160 --> 00:10:16,120 Speaker 4: with people that support what you're doing. It at least 184 00:10:16,200 --> 00:10:18,520 Speaker 4: they have the will to understand what you're doing. So 185 00:10:18,880 --> 00:10:22,319 Speaker 4: actually the change in administration is what is making possible 186 00:10:22,559 --> 00:10:27,479 Speaker 4: for us for that or another many cryptocurrency related companies 187 00:10:28,040 --> 00:10:30,920 Speaker 4: to start to deal with the big four auditing firms. 188 00:10:31,160 --> 00:10:34,600 Speaker 4: We are in discussions. We have multiple discussions on the 189 00:10:34,640 --> 00:10:37,280 Speaker 4: topic of audit. We hired a new CFO a couple 190 00:10:37,320 --> 00:10:41,679 Speaker 4: of months ago. Is great. Simon went through multiple contentions 191 00:10:41,760 --> 00:10:45,200 Speaker 4: full audit across his entire career. I don't think that 192 00:10:45,280 --> 00:10:48,600 Speaker 4: audit should be contentious, but given again the complexity and 193 00:10:48,760 --> 00:10:53,439 Speaker 4: the new field that is cryptoward is possibly one correct 194 00:10:53,520 --> 00:10:57,760 Speaker 4: term and adjective that I could use here. And look, 195 00:10:57,840 --> 00:11:00,400 Speaker 4: we are very positive that the full audit is our 196 00:11:00,440 --> 00:11:04,240 Speaker 4: top priority, and I'm pretty confident that we're going to 197 00:11:04,240 --> 00:11:04,600 Speaker 4: make it. 198 00:11:05,120 --> 00:11:08,760 Speaker 2: So just to be clear on the regulatory point, things 199 00:11:08,800 --> 00:11:12,360 Speaker 2: are changing, as you just mentioned, and previously there was 200 00:11:12,440 --> 00:11:16,320 Speaker 2: regulatory pressure on the big accounting firms to not work 201 00:11:16,360 --> 00:11:20,560 Speaker 2: with you. That seems to be going away. That's going 202 00:11:20,640 --> 00:11:22,679 Speaker 2: to allow you to do an audit. Do you have 203 00:11:22,720 --> 00:11:24,520 Speaker 2: a time frame for when you might do that? 204 00:11:25,200 --> 00:11:27,800 Speaker 4: So in the past we committed a few times and 205 00:11:27,920 --> 00:11:31,880 Speaker 4: we provided timelines that were not realistic because of the 206 00:11:31,920 --> 00:11:36,360 Speaker 4: fact that, as I said, the administration really doubled down 207 00:11:36,360 --> 00:11:39,040 Speaker 4: on trying to kill an entire industry. That was very, 208 00:11:39,160 --> 00:11:42,920 Speaker 4: very sad to see. So again, we are moving as 209 00:11:42,920 --> 00:11:46,840 Speaker 4: fast as we can. There is of course some change 210 00:11:46,880 --> 00:11:50,160 Speaker 4: that is still needed among the big four auditing firms. 211 00:11:50,679 --> 00:11:54,080 Speaker 4: So while they are getting more comfortable, look the administration 212 00:11:54,200 --> 00:11:57,080 Speaker 4: changed only two months ago, so give them a little 213 00:11:57,080 --> 00:11:59,560 Speaker 4: bit of time to get comfortable. And we are providing 214 00:11:59,640 --> 00:12:02,960 Speaker 4: all the We are again in already in discussions. So 215 00:12:03,200 --> 00:12:06,320 Speaker 4: it's crazy. The monimization changed two months ago and we 216 00:12:06,440 --> 00:12:09,280 Speaker 4: are already in discussions way big four auditing firms. So 217 00:12:09,679 --> 00:12:11,920 Speaker 4: that is the best thing that can say. And again 218 00:12:11,960 --> 00:12:14,959 Speaker 4: the fact that we hire the new CFO and that 219 00:12:15,080 --> 00:12:17,280 Speaker 4: has you know, the highest experience in the sector to 220 00:12:17,320 --> 00:12:21,040 Speaker 4: get through audits is something that should reinvigorate our position. 221 00:12:36,240 --> 00:12:39,439 Speaker 2: What's the complexity of doing an audit for a business 222 00:12:39,559 --> 00:12:41,880 Speaker 2: like Tether. I've always wanted to ask this question. So 223 00:12:42,040 --> 00:12:44,960 Speaker 2: you know, you need a professional accounting firm to do this, 224 00:12:45,080 --> 00:12:48,800 Speaker 2: because you want to give people who use Tether investors 225 00:12:48,840 --> 00:12:52,640 Speaker 2: some sense of safety and stability and truth in what 226 00:12:52,679 --> 00:12:56,680 Speaker 2: you're portraying. But at the same time, it seems like, 227 00:12:57,040 --> 00:12:58,800 Speaker 2: you know, you should have a pretty good idea. 228 00:12:58,920 --> 00:13:01,560 Speaker 3: It seems simple, count of the treasuries and count the 229 00:13:01,559 --> 00:13:03,600 Speaker 3: circuits and if they merge, what are we missing here? 230 00:13:03,800 --> 00:13:05,840 Speaker 4: I agree with that. In fact, the problem I don't 231 00:13:05,880 --> 00:13:10,040 Speaker 4: think is about the complexity of going through our reserves 232 00:13:10,040 --> 00:13:13,319 Speaker 4: because as we said, we keep the majority, the vast 233 00:13:13,360 --> 00:13:15,760 Speaker 4: majority of our treasure is in counterfigial. That is a 234 00:13:15,880 --> 00:13:19,679 Speaker 4: very highly regulated financial institution here in the US. I 235 00:13:19,720 --> 00:13:23,760 Speaker 4: think that the confidence in the industry, in the digital 236 00:13:23,760 --> 00:13:27,120 Speaker 4: assets industry is growing among the big four auditing firms. 237 00:13:27,520 --> 00:13:29,440 Speaker 4: And look, on the other side, you can go on 238 00:13:29,520 --> 00:13:32,199 Speaker 4: blockchains and blockchains are very very transparent, so you can 239 00:13:32,240 --> 00:13:35,120 Speaker 4: count to the liabilities through the transparency of the blockchain. 240 00:13:35,240 --> 00:13:37,880 Speaker 4: And on the other side, you can just independently contact 241 00:13:38,000 --> 00:13:41,800 Speaker 4: our custodians. I think that what we expect from the 242 00:13:41,840 --> 00:13:45,400 Speaker 4: full audit is also confirmation of our good practices that 243 00:13:45,440 --> 00:13:48,360 Speaker 4: we have within the company in terms of controls and 244 00:13:48,440 --> 00:13:51,840 Speaker 4: safety and proper management, for example, the private keys and 245 00:13:51,880 --> 00:13:55,200 Speaker 4: all that stuff. So that's a process that we want 246 00:13:55,280 --> 00:13:57,640 Speaker 4: to make sure that we go in the deepest details 247 00:13:57,640 --> 00:14:01,080 Speaker 4: possible with our auditors, because there is nothing that excites 248 00:14:01,160 --> 00:14:04,400 Speaker 4: me more than prove that we were always right we 249 00:14:04,559 --> 00:14:07,480 Speaker 4: had our lacking in twenty twenty four going out there 250 00:14:07,520 --> 00:14:11,280 Speaker 4: saying Tatter has the money. We are releasing a quarterly 251 00:14:11,280 --> 00:14:15,679 Speaker 4: attestation from a very reputable auditing firm called BDO. They 252 00:14:15,679 --> 00:14:20,800 Speaker 4: are international, so there are many many different independent validators 253 00:14:20,840 --> 00:14:23,480 Speaker 4: of our service. But you know, we just want to 254 00:14:23,480 --> 00:14:24,600 Speaker 4: get the flow of it done. 255 00:14:24,840 --> 00:14:28,400 Speaker 3: Circle, one of your competitors, holds its money in a 256 00:14:28,440 --> 00:14:32,320 Speaker 3: money market mutual fund from Blackrock called the Circle Reserve Fund. 257 00:14:32,680 --> 00:14:37,160 Speaker 3: What is the advantage of going out and acquiring q 258 00:14:37,360 --> 00:14:40,720 Speaker 3: SIPs of various flavors directly such that you're direct holder 259 00:14:40,720 --> 00:14:44,000 Speaker 3: of treasuries rather than outsourcing it like that. Here's an 260 00:14:44,000 --> 00:14:46,760 Speaker 3: institution black Rock. They set up a money market mutual 261 00:14:46,800 --> 00:14:48,480 Speaker 3: fund that you could just buy into and not have 262 00:14:48,520 --> 00:14:51,520 Speaker 3: to think about that part. Why the preference towards the 263 00:14:51,600 --> 00:14:54,000 Speaker 3: direct holdings of the bills and bonds. 264 00:14:54,560 --> 00:14:56,880 Speaker 4: So that's a good question. So we prefer to have 265 00:14:57,000 --> 00:15:01,320 Speaker 4: a direct control over the process and we that through Counterfaitgerald. 266 00:15:01,600 --> 00:15:05,000 Speaker 4: Also having that direct control allows us to have access 267 00:15:05,080 --> 00:15:08,920 Speaker 4: to the infinitely liquid ripple market. So we think that 268 00:15:09,080 --> 00:15:12,920 Speaker 4: is in case of huge pressure from the markets and 269 00:15:13,000 --> 00:15:17,360 Speaker 4: huge redemption pressure, our facility is much better than anything 270 00:15:17,360 --> 00:15:21,560 Speaker 4: else attempted by our competitors. Look think about in twenty 271 00:15:21,760 --> 00:15:25,160 Speaker 4: twenty three, our major competitors had and a big issue 272 00:15:25,200 --> 00:15:28,080 Speaker 4: with Silicon Valley Bank. They have uninsured cash deposits there. 273 00:15:28,240 --> 00:15:32,520 Speaker 4: In twenty twenty two, Tetter was attacked by funds that 274 00:15:32,600 --> 00:15:36,600 Speaker 4: were clearly trying to cause a bank run on USDT. 275 00:15:37,200 --> 00:15:41,240 Speaker 4: They tried the mussed billions and billions and billions of 276 00:15:41,560 --> 00:15:44,880 Speaker 4: USDT just to trying to sell them under par on 277 00:15:44,920 --> 00:15:48,800 Speaker 4: the secondary markets on the different cryptocurrency exchanges can Tetther 278 00:15:49,000 --> 00:15:52,320 Speaker 4: never refused the redemption. TATA never failed to redeem at 279 00:15:52,440 --> 00:15:57,400 Speaker 4: one dollar each token. But at that time when that happened, 280 00:15:57,760 --> 00:16:01,000 Speaker 4: these short sellers were trying to cause a bankrupt and 281 00:16:01,040 --> 00:16:03,280 Speaker 4: So what happened is that Tata was able to redeem 282 00:16:03,360 --> 00:16:06,880 Speaker 4: seven billion dollars in forty eight hours and the twenty 283 00:16:06,920 --> 00:16:10,320 Speaker 4: billion dollars in twenty five days. So seven billion dollars 284 00:16:10,360 --> 00:16:14,320 Speaker 4: weigh ten percent of our reserves and twenty billion dollars 285 00:16:14,400 --> 00:16:18,680 Speaker 4: where around the twenty something percent of our reserves. So 286 00:16:19,280 --> 00:16:22,280 Speaker 4: I mean, if you look at Washington, mood Well and 287 00:16:22,360 --> 00:16:26,240 Speaker 4: many other banks that failed from twenty eight and after, 288 00:16:26,840 --> 00:16:29,000 Speaker 4: there was no bank that was able to support a 289 00:16:29,040 --> 00:16:31,640 Speaker 4: ten percent bankrunt, and we did it with flying collars. 290 00:16:31,640 --> 00:16:34,760 Speaker 4: We could have gone to till the end. That's what 291 00:16:35,280 --> 00:16:38,000 Speaker 4: means to have a proper repo market and very deep 292 00:16:38,120 --> 00:16:41,920 Speaker 4: liquid market for treasuries. We keep all treasuries that are 293 00:16:41,960 --> 00:16:46,040 Speaker 4: basically three months in duration ninety days. So I think 294 00:16:46,120 --> 00:16:49,720 Speaker 4: we build the best facility for handling any sort of 295 00:16:49,760 --> 00:16:52,880 Speaker 4: redemption and provide the proper amount of trust that our 296 00:16:52,960 --> 00:16:54,200 Speaker 4: users need around the world. 297 00:16:54,680 --> 00:16:57,880 Speaker 2: So you made it through twenty twenty two, it must 298 00:16:57,920 --> 00:17:01,680 Speaker 2: have still been fairly traumatized or scary at the time 299 00:17:01,800 --> 00:17:04,960 Speaker 2: to have that much withdrawal pressure on the business. Have 300 00:17:05,080 --> 00:17:09,520 Speaker 2: you changed any of your redemption policies since then or 301 00:17:09,600 --> 00:17:14,640 Speaker 2: perhaps instituted I don't know new risk management around the 302 00:17:14,680 --> 00:17:15,679 Speaker 2: PEG point. 303 00:17:16,680 --> 00:17:20,000 Speaker 4: So the concept of PEG is interesting, right. People refer 304 00:17:20,119 --> 00:17:23,760 Speaker 4: to the PEG as you know, if USDT or another 305 00:17:23,800 --> 00:17:27,560 Speaker 4: stable coin trades you know, two, three business points or 306 00:17:27,560 --> 00:17:32,000 Speaker 4: ten business points below one dollar on secondary markets, that 307 00:17:32,240 --> 00:17:35,520 Speaker 4: is not the PEG. The PEG is our ability. The 308 00:17:35,560 --> 00:17:40,040 Speaker 4: official PEG of USDT is our ability to redeem every 309 00:17:40,119 --> 00:17:43,040 Speaker 4: token that can be sent to our primary market, that 310 00:17:43,160 --> 00:17:47,200 Speaker 4: is our platform, to one dollar. So we always redeem 311 00:17:47,480 --> 00:17:51,119 Speaker 4: every single token at one dollar. So if someone on 312 00:17:51,200 --> 00:17:53,440 Speaker 4: the secondary market is trying to short it and sell 313 00:17:53,480 --> 00:17:56,159 Speaker 4: it to one percent two percent under power, that is 314 00:17:56,200 --> 00:17:58,920 Speaker 4: a completely different thing. It does not mean that there 315 00:17:58,960 --> 00:18:01,639 Speaker 4: is an actual issue. In fact, we demonstrated that we 316 00:18:01,640 --> 00:18:04,320 Speaker 4: were able. Even when we were attacked in a very 317 00:18:04,320 --> 00:18:06,760 Speaker 4: heavy way that would have destroyed every single company and 318 00:18:06,800 --> 00:18:10,119 Speaker 4: every single financial institution in this world. We survived and 319 00:18:10,280 --> 00:18:13,600 Speaker 4: very well. So actually we have still PTSD, I must 320 00:18:13,600 --> 00:18:17,560 Speaker 4: say after that event. But I think that really reinforced 321 00:18:17,840 --> 00:18:22,600 Speaker 4: our commitment to transparency. It's funny because first we were 322 00:18:22,640 --> 00:18:25,360 Speaker 4: accused to not be transparent enough, and then when we're 323 00:18:25,400 --> 00:18:27,600 Speaker 4: now very transparent and we are also saying how much 324 00:18:27,600 --> 00:18:29,879 Speaker 4: money we are making, people get upset because we are 325 00:18:29,920 --> 00:18:32,800 Speaker 4: making too much money. So it's quite interesting how it 326 00:18:32,840 --> 00:18:35,800 Speaker 4: can go both ways. But look now, I think that 327 00:18:35,840 --> 00:18:37,879 Speaker 4: there is no doubt that the Tator has in this 328 00:18:38,000 --> 00:18:41,879 Speaker 4: moment one hundred and forty four billion dollars in issued outstanding 329 00:18:41,920 --> 00:18:45,160 Speaker 4: tokens and around one hundred and sixty four billion dollars 330 00:18:45,200 --> 00:18:49,399 Speaker 4: in excess equity across the group. So it's something. So 331 00:18:49,480 --> 00:18:54,160 Speaker 4: we have twenty billion dollars in proprietary capital within the company, 332 00:18:54,600 --> 00:18:58,119 Speaker 4: among which seven are specific seven billion are specifically to 333 00:18:58,200 --> 00:19:02,440 Speaker 4: let us at last attestation, where specifically are specifically attributed 334 00:19:02,480 --> 00:19:05,120 Speaker 4: to the access research of the stable coin. By again, 335 00:19:05,200 --> 00:19:07,600 Speaker 4: the group has twenty billion dollars in additional equity. So 336 00:19:07,880 --> 00:19:10,159 Speaker 4: it's very rare that you see a company like this, 337 00:19:10,359 --> 00:19:14,080 Speaker 4: and so yes, we want also the fact that we 338 00:19:14,200 --> 00:19:17,679 Speaker 4: basically took out very small amount of dividends prove the 339 00:19:17,720 --> 00:19:20,119 Speaker 4: fact that for us, the safety of our ecosystem, the 340 00:19:20,119 --> 00:19:23,200 Speaker 4: safety of our company is paramount. And if you look 341 00:19:23,240 --> 00:19:26,360 Speaker 4: at our other competitors to keep you know, some peanuts 342 00:19:26,400 --> 00:19:28,040 Speaker 4: on top of the reserves. 343 00:19:27,640 --> 00:19:30,639 Speaker 3: You mentioned, people complain about, oh, you're making so much money, 344 00:19:30,680 --> 00:19:32,399 Speaker 3: and you know, look, people are always going to lie 345 00:19:32,480 --> 00:19:34,159 Speaker 3: about other people doing well, I get that, but I 346 00:19:34,160 --> 00:19:37,800 Speaker 3: can think of one group that might genuinely have an 347 00:19:37,840 --> 00:19:42,040 Speaker 3: eye on the profits, and that is institutional traders of crypto. 348 00:19:42,320 --> 00:19:45,200 Speaker 3: And the question I have is, you have this amazing 349 00:19:45,280 --> 00:19:47,880 Speaker 3: business model. Will you collect all this yield on your 350 00:19:47,880 --> 00:19:51,200 Speaker 3: treasuries and none of it remits? And how long can 351 00:19:51,240 --> 00:19:54,120 Speaker 3: that last? Because I would imagine that if I were 352 00:19:54,240 --> 00:19:56,680 Speaker 3: some hedge fund, or if I were some highest frequency 353 00:19:56,720 --> 00:19:59,919 Speaker 3: trading shop, et cetera, I would not want to be 354 00:20:00,160 --> 00:20:03,080 Speaker 3: holding this token. If I were holding a dollar, you know, 355 00:20:03,160 --> 00:20:05,439 Speaker 3: even for a minute, I would put it in some 356 00:20:05,480 --> 00:20:07,960 Speaker 3: sort of money market virtual front, collected day's worth of 357 00:20:08,000 --> 00:20:10,639 Speaker 3: yield whatever. You're not gonna leave that in a non 358 00:20:10,680 --> 00:20:14,080 Speaker 3: interest bearing asset even for ten seconds. Do you believe 359 00:20:14,119 --> 00:20:17,280 Speaker 3: that the business model, the margin between holdings what you 360 00:20:17,320 --> 00:20:20,520 Speaker 3: pay out, can sustain itself with competition or will it 361 00:20:20,600 --> 00:20:22,080 Speaker 3: inevitably compress? 362 00:20:22,600 --> 00:20:25,000 Speaker 4: So you make a very good point, but I think 363 00:20:25,040 --> 00:20:28,240 Speaker 4: that they should. There is that you would be right 364 00:20:28,440 --> 00:20:31,520 Speaker 4: if stable coins in general would be a product made 365 00:20:31,520 --> 00:20:34,920 Speaker 4: for the United States. Stable coins are not a product 366 00:20:34,920 --> 00:20:37,600 Speaker 4: made for United States. Sure stable coins can work in 367 00:20:37,600 --> 00:20:40,760 Speaker 4: the United States. Stable coin can be used as a 368 00:20:40,760 --> 00:20:46,480 Speaker 4: faster settlement system across the inter banking settlement system. Materiality 369 00:20:46,600 --> 00:20:51,000 Speaker 4: is that data never focused on institutions. You know, institutions 370 00:20:51,000 --> 00:20:54,760 Speaker 4: would betray you for one basis point. They would would go, 371 00:20:54,920 --> 00:20:57,200 Speaker 4: you know, they would do they want, as you said, 372 00:20:57,640 --> 00:21:00,320 Speaker 4: to use money market funds to maximize their return. That 373 00:21:00,520 --> 00:21:03,920 Speaker 4: is fair, that is normal. But so Tether build the 374 00:21:03,920 --> 00:21:06,919 Speaker 4: biggest distribution network for US dollar in the emerging markets 375 00:21:06,920 --> 00:21:09,879 Speaker 4: and developing countries where if you think about Turkey, if 376 00:21:09,920 --> 00:21:13,120 Speaker 4: you think about Argentina, if you think about other countries, 377 00:21:13,760 --> 00:21:18,159 Speaker 4: the national currency of these places have been devaluating very 378 00:21:18,200 --> 00:21:22,000 Speaker 4: very fast against the US dollar. So in Argentina, I 379 00:21:22,040 --> 00:21:24,840 Speaker 4: think that pays Argentina the last ten twelve years, they 380 00:21:24,880 --> 00:21:28,600 Speaker 4: evaluated ninety eight percent against the US dollar, and the 381 00:21:28,600 --> 00:21:31,480 Speaker 4: Turkish leer the evaluated eighty percent against the US dollar 382 00:21:31,520 --> 00:21:34,960 Speaker 4: in the last a few years. So last year into. 383 00:21:34,680 --> 00:21:36,760 Speaker 3: Those So you're saying that four percent doesn't. 384 00:21:36,560 --> 00:21:39,320 Speaker 4: Matter, Yes, because the inter day volatility over their national 385 00:21:39,320 --> 00:21:41,879 Speaker 4: currency is higher than four percent, So why does it 386 00:21:41,920 --> 00:21:44,240 Speaker 4: matter to them? And that's they will stay with you. 387 00:21:44,280 --> 00:21:46,400 Speaker 4: They will be loyal will you as long as you 388 00:21:46,480 --> 00:21:49,000 Speaker 4: can prove them that you have the solid product that 389 00:21:49,040 --> 00:21:51,840 Speaker 4: can trust for their family savings. And by the way, 390 00:21:51,880 --> 00:21:54,960 Speaker 4: forty percent of all the USDT holders are using USDT 391 00:21:55,119 --> 00:21:59,080 Speaker 4: for savings, so that because we have people that live 392 00:21:59,119 --> 00:22:01,639 Speaker 4: in Nigeria and urgent markets that need that as a 393 00:22:01,640 --> 00:22:05,600 Speaker 4: lifeline against the evaluation of their national currency and inflation 394 00:22:05,640 --> 00:22:06,280 Speaker 4: in their countries. 395 00:22:06,800 --> 00:22:10,000 Speaker 2: I take the point that tether is not necessarily aimed 396 00:22:10,200 --> 00:22:13,760 Speaker 2: at the US, But at the same time, there are rumors. 397 00:22:13,800 --> 00:22:18,600 Speaker 2: There are always rumors swirling around about big global companies 398 00:22:18,800 --> 00:22:23,680 Speaker 2: like an Amazon, maybe a Walmart rolling out some sort 399 00:22:23,680 --> 00:22:27,760 Speaker 2: of payment system, or maybe a stable coin competitor. And 400 00:22:27,840 --> 00:22:31,119 Speaker 2: I think one interesting thing that's been happening lately is 401 00:22:31,160 --> 00:22:35,200 Speaker 2: we've seen some retailers actually joining forces with crypto to 402 00:22:35,280 --> 00:22:38,960 Speaker 2: try to lobby for the stable coin bill, which is interesting. 403 00:22:39,160 --> 00:22:42,600 Speaker 2: They're trying to reduce their swipe fees. I guess do 404 00:22:42,640 --> 00:22:45,480 Speaker 2: you worry about that kind of competition coming in and 405 00:22:45,560 --> 00:22:48,720 Speaker 2: potentially taking some market share from your business model? 406 00:22:50,119 --> 00:22:52,719 Speaker 4: Again, the countries where we operate and where we are 407 00:22:52,760 --> 00:22:56,000 Speaker 4: more successful is you know, the US top cos are 408 00:22:56,040 --> 00:22:59,399 Speaker 4: not necessarily that present, right As I said that are 409 00:22:59,600 --> 00:23:03,240 Speaker 4: invests that half of its portfolio and half of its 410 00:23:03,480 --> 00:23:07,000 Speaker 4: own equity. So outside of the reserves of the stable coin. 411 00:23:07,200 --> 00:23:10,760 Speaker 4: We invested in building our distribution network, so we are 412 00:23:10,800 --> 00:23:14,840 Speaker 4: building millions of touch points in across the world. You know. 413 00:23:15,119 --> 00:23:19,520 Speaker 4: One interesting example is you know we came across the concept. 414 00:23:19,560 --> 00:23:22,000 Speaker 4: Well we there is a clear statistic that six hundred 415 00:23:22,000 --> 00:23:24,280 Speaker 4: million people in Africa don't have electricity at home, but 416 00:23:24,320 --> 00:23:27,560 Speaker 4: they have smartphones, they have small televisions and a few 417 00:23:27,560 --> 00:23:30,919 Speaker 4: other things. So what we are doing now is we 418 00:23:30,960 --> 00:23:34,320 Speaker 4: are investing in a company that is building chosks in 419 00:23:34,560 --> 00:23:37,960 Speaker 4: villages in Africa with solar panels on top, and they 420 00:23:38,080 --> 00:23:42,080 Speaker 4: sell or they rent batteries for three USDT per month. 421 00:23:42,320 --> 00:23:44,280 Speaker 4: So with three ucit t per month, you can swap 422 00:23:44,280 --> 00:23:46,760 Speaker 4: the battery four times per month, so once per week. 423 00:23:47,320 --> 00:23:49,760 Speaker 4: Now the average salary a salary of a person in 424 00:23:49,760 --> 00:23:53,080 Speaker 4: Africa is around eighty dollars and so this is like 425 00:23:53,160 --> 00:23:55,919 Speaker 4: three USDT. Are you know a good compromise to have 426 00:23:55,960 --> 00:23:59,480 Speaker 4: electricity at home with these very good butteries. So this 427 00:23:59,560 --> 00:24:02,280 Speaker 4: is an exact how we and we have already three 428 00:24:02,320 --> 00:24:06,120 Speaker 4: hundred kiosks. We are planning to ramp up to ten 429 00:24:06,160 --> 00:24:08,600 Speaker 4: thousand KOs by the end of twenty twenty six and 430 00:24:09,040 --> 00:24:11,440 Speaker 4: one hundred dozen kosks by the end of two thou thirty. 431 00:24:11,640 --> 00:24:14,040 Speaker 4: So the idea is that by twenty thirty, we can 432 00:24:14,240 --> 00:24:17,199 Speaker 4: serve around sixty million people in Africa that will be 433 00:24:17,440 --> 00:24:21,240 Speaker 4: running on USDT as their main currency. So we are 434 00:24:21,320 --> 00:24:25,280 Speaker 4: actually converting people to get on the US dollar. That's 435 00:24:25,280 --> 00:24:27,359 Speaker 4: why I say that we are the best friends for 436 00:24:27,520 --> 00:24:29,639 Speaker 4: and best in life for the US dollar gemony. And 437 00:24:29,840 --> 00:24:32,960 Speaker 4: just to finish, we have with that company on not 438 00:24:33,000 --> 00:24:37,000 Speaker 4: only we are changing the end, we're pushing the adoption 439 00:24:37,080 --> 00:24:40,119 Speaker 4: of the US dollars. It's a great example of a 440 00:24:40,240 --> 00:24:41,960 Speaker 4: change that you will see from space because if you 441 00:24:42,000 --> 00:24:44,760 Speaker 4: see Africa, it's very dark during the night because they 442 00:24:44,760 --> 00:24:47,600 Speaker 4: don't have electricity. But if you power up sixty million people, 443 00:24:48,040 --> 00:25:04,920 Speaker 4: that will change, and that is a significant change. 444 00:25:05,840 --> 00:25:09,360 Speaker 3: There is an effort right now to regulate stable coins 445 00:25:09,359 --> 00:25:12,200 Speaker 3: in the law, et cetera. If this passes, there's something 446 00:25:12,280 --> 00:25:15,200 Speaker 3: called the stable coin Legislation, the Genius Act, I think 447 00:25:15,240 --> 00:25:18,359 Speaker 3: it's called and who can issue a stable coin a 448 00:25:18,359 --> 00:25:22,920 Speaker 3: federal qualified non bank payment stable coin something by the OCS, the. 449 00:25:22,920 --> 00:25:26,600 Speaker 2: Genius Act for stable coins for stable genius the. 450 00:25:26,600 --> 00:25:30,120 Speaker 3: State, yeah, right, the subsidiary of an insured depository institution, 451 00:25:30,200 --> 00:25:33,000 Speaker 3: a state qualified payment stable coin. If something like this 452 00:25:33,040 --> 00:25:36,760 Speaker 3: were to pass. You're talking about you know, your priority 453 00:25:36,760 --> 00:25:39,280 Speaker 3: has really never been the United States. You're talking about Africa, 454 00:25:39,320 --> 00:25:41,840 Speaker 3: You're talking about Turkey, you're talking about Argentina, places that 455 00:25:41,880 --> 00:25:46,679 Speaker 3: have seen significant devaluation. Would you register in the United 456 00:25:46,760 --> 00:25:49,359 Speaker 3: States as a stable coin under this law or would 457 00:25:49,359 --> 00:25:51,000 Speaker 3: you choose to just like you know what the US 458 00:25:51,119 --> 00:25:52,960 Speaker 3: is it where our activity is right. 459 00:25:52,840 --> 00:25:56,920 Speaker 4: So let me laborate on the answer has multiple point 460 00:25:56,960 --> 00:26:00,200 Speaker 4: of views. So first of all, we really appreciate keep 461 00:26:00,200 --> 00:26:02,679 Speaker 4: in mind that Keeping, the company that created the stable 462 00:26:02,720 --> 00:26:06,479 Speaker 4: coin industry in twenty fourteen, is a big owner than now. 463 00:26:06,560 --> 00:26:08,840 Speaker 4: Lawmakers in the most powerful country in the world are 464 00:26:08,880 --> 00:26:11,159 Speaker 4: looking at our technology and want to regulate it. So 465 00:26:11,680 --> 00:26:15,440 Speaker 4: we are very very excited for that. Second, the law 466 00:26:15,600 --> 00:26:18,399 Speaker 4: and the Genius Act is a very well done piece 467 00:26:18,440 --> 00:26:21,920 Speaker 4: of law and it allows few things. First of all, 468 00:26:22,040 --> 00:26:26,840 Speaker 4: Tator could consider to create a domestic US based stable coin. 469 00:26:27,480 --> 00:26:31,800 Speaker 4: The difference is that a US domestic stable coin would 470 00:26:31,840 --> 00:26:35,560 Speaker 4: go towards would be used more for institutions, so the 471 00:26:35,600 --> 00:26:38,560 Speaker 4: product market fit is completely different than a stable coin 472 00:26:38,600 --> 00:26:40,520 Speaker 4: that is used in costs in Africa. 473 00:26:40,600 --> 00:26:42,199 Speaker 3: Right, So also be actually like a coin that might 474 00:26:42,240 --> 00:26:43,920 Speaker 3: have a different tecred, it wouldn't be USDT. 475 00:26:44,200 --> 00:26:47,960 Speaker 4: Yes, we are discussing about that opportunity, that possibility. I mean, look, 476 00:26:48,240 --> 00:26:50,320 Speaker 4: we need to wait for the LA final language and 477 00:26:50,560 --> 00:26:53,240 Speaker 4: to see which bill will pass, but definitely we are 478 00:26:53,280 --> 00:26:57,920 Speaker 4: open to that. Tatter is we discussed before about law 479 00:26:58,000 --> 00:27:01,960 Speaker 4: enforcement regulations and all that. Tether Not many know theys, 480 00:27:01,960 --> 00:27:04,919 Speaker 4: but TET is the only stable coin, also including the 481 00:27:05,000 --> 00:27:07,760 Speaker 4: US based stable coins that on board the FBI United 482 00:27:07,760 --> 00:27:10,399 Speaker 4: States Secret Services. We work daily with the Department of 483 00:27:10,600 --> 00:27:15,000 Speaker 4: Justice and the other organizations within the US. We worked 484 00:27:15,000 --> 00:27:18,200 Speaker 4: on more than four hundred operations with US law enforcement 485 00:27:18,320 --> 00:27:20,680 Speaker 4: across the globe. We work with two hundred and thirty 486 00:27:20,720 --> 00:27:24,200 Speaker 4: law enforcement ages. It's across fifty different countries. So when 487 00:27:24,440 --> 00:27:28,920 Speaker 4: in the proposed Genius Act there is the requirement of 488 00:27:29,160 --> 00:27:32,359 Speaker 4: stable coins, even for endstable coins, because USDT would remain 489 00:27:32,440 --> 00:27:36,240 Speaker 4: potentially an international stable coin, we would be very happy 490 00:27:36,280 --> 00:27:40,240 Speaker 4: to continue our collaboration and see in the Brittain requirement 491 00:27:40,280 --> 00:27:43,560 Speaker 4: of a collaboration with US law enforcement that we think 492 00:27:43,640 --> 00:27:48,000 Speaker 4: is sensible and everyone now on at least on X 493 00:27:48,119 --> 00:27:51,960 Speaker 4: knows this. We are the fastest responder to law enforcement 494 00:27:52,000 --> 00:27:56,400 Speaker 4: requests compared to our competition. We don't wait for court orders. 495 00:27:56,480 --> 00:27:58,600 Speaker 4: That allows criminals to get away with it, to move 496 00:27:58,600 --> 00:28:03,040 Speaker 4: funds very quickly, immediately act upon contact being contacted by 497 00:28:03,080 --> 00:28:06,320 Speaker 4: law enforcement. But on top of that, among our people, 498 00:28:06,440 --> 00:28:10,679 Speaker 4: we have probably the most impressive investigation team in the 499 00:28:10,800 --> 00:28:15,119 Speaker 4: entire industry, also across again, also across traditional finance. In fact, 500 00:28:15,760 --> 00:28:18,320 Speaker 4: just a couple of weeks ago, there was the freezing 501 00:28:18,359 --> 00:28:22,240 Speaker 4: of Guarantex that was a cryptocurrency exchange sanction, a ration one, 502 00:28:22,560 --> 00:28:25,480 Speaker 4: and we worked for months with the Department Justice to 503 00:28:25,680 --> 00:28:27,920 Speaker 4: find the right way to do it, to the right processes. 504 00:28:28,119 --> 00:28:31,360 Speaker 4: Like it's a very good collaboration. We received I think 505 00:28:31,359 --> 00:28:33,560 Speaker 4: a couple of weeks ago, I thank you public thank 506 00:28:33,600 --> 00:28:36,800 Speaker 4: you note for our productivity in our collaboration with the 507 00:28:36,800 --> 00:28:39,960 Speaker 4: Department Justice. So this is how we are comfortable. So 508 00:28:40,000 --> 00:28:42,240 Speaker 4: we believe that no matter if you are an international 509 00:28:42,240 --> 00:28:45,400 Speaker 4: stable coin or domestic stable coin, you need to work 510 00:28:45,440 --> 00:28:50,040 Speaker 4: within the US parameters of sanctions and law enforcement. So 511 00:28:50,840 --> 00:28:53,240 Speaker 4: we believe that is important for in stable coins to 512 00:28:53,280 --> 00:28:55,160 Speaker 4: work with US law enforcement. But at the same time, 513 00:28:55,680 --> 00:28:59,760 Speaker 4: the domestic stable coins and foreign stable coins have different value. 514 00:28:59,720 --> 00:29:03,600 Speaker 4: Proper position. One is for people that are left behind 515 00:29:03,600 --> 00:29:06,800 Speaker 4: by the banking system because there are three billion people 516 00:29:06,840 --> 00:29:09,320 Speaker 4: that are on bank that they cannot afford to pay 517 00:29:09,320 --> 00:29:11,960 Speaker 4: one hundred and fifty dollars per year in banking fees 518 00:29:12,440 --> 00:29:14,360 Speaker 4: and those I mean, I'm pretty sure that if you 519 00:29:14,440 --> 00:29:18,320 Speaker 4: ask JPMorgan how many customers that they would want from 520 00:29:18,360 --> 00:29:20,640 Speaker 4: our user base, they would say probably four not four 521 00:29:20,720 --> 00:29:25,080 Speaker 4: undred million, just because our customers all singularly are too 522 00:29:25,120 --> 00:29:28,080 Speaker 4: poor of a being of their interest. But that's something 523 00:29:28,200 --> 00:29:30,640 Speaker 4: very unique to Tether in the US. You would need 524 00:29:30,760 --> 00:29:34,480 Speaker 4: different use cases for stable coins because you have Zell, PayPal, 525 00:29:34,600 --> 00:29:38,000 Speaker 4: cash up and six hundred gazillion ways to pay each other. 526 00:29:38,720 --> 00:29:40,920 Speaker 2: How big is your investigations team? 527 00:29:41,360 --> 00:29:44,320 Speaker 4: So we have a specific internal investigations team that is 528 00:29:44,360 --> 00:29:47,840 Speaker 4: between twenty and thirty people, plus a very big compliance team. 529 00:29:48,280 --> 00:29:51,560 Speaker 4: And then on top of that, we have been contracting 530 00:29:51,600 --> 00:29:53,800 Speaker 4: and working with the leaders in the space when it 531 00:29:53,840 --> 00:29:58,400 Speaker 4: comes to blockchain analytics, so we borrow also external investigations 532 00:29:58,400 --> 00:30:02,480 Speaker 4: team and ecosystem money tools. We work with channel Disease 533 00:30:02,680 --> 00:30:06,120 Speaker 4: trm LBS. We recently announced a huge phrase working with 534 00:30:06,240 --> 00:30:08,840 Speaker 4: trm LBS related to the Bybe attack and so on. 535 00:30:08,880 --> 00:30:11,720 Speaker 4: So again, I think that there is no doubt that 536 00:30:11,800 --> 00:30:14,240 Speaker 4: data has the highest standard when it comes to compliance 537 00:30:14,320 --> 00:30:18,040 Speaker 4: and investigation within the cryptocurrency industry and the digital as 538 00:30:18,120 --> 00:30:20,120 Speaker 4: in industry, but also above and beyond. 539 00:30:20,440 --> 00:30:24,240 Speaker 2: So on this topic of cooperating with law enforcement, this 540 00:30:24,360 --> 00:30:27,840 Speaker 2: is something I always wondered about crypto in general. But 541 00:30:27,960 --> 00:30:32,200 Speaker 2: part of the selling point is anonymous transactions, right, And 542 00:30:32,400 --> 00:30:35,840 Speaker 2: it's not even necessarily that you need an anonymous transaction 543 00:30:36,120 --> 00:30:40,000 Speaker 2: in order to do something nefarious like buy drugs or whatever. 544 00:30:40,160 --> 00:30:43,480 Speaker 2: You might just want one for something like I don't know, 545 00:30:43,520 --> 00:30:46,440 Speaker 2: a husband buying his wife a birthday present and he 546 00:30:46,480 --> 00:30:50,720 Speaker 2: doesn't want to to see it or whatever. Anonymity is 547 00:30:50,840 --> 00:30:54,880 Speaker 2: part of the selling point here for some of your customers. 548 00:30:55,160 --> 00:30:57,520 Speaker 2: And yet at the same time we always hear that 549 00:30:58,280 --> 00:31:02,600 Speaker 2: the transactions are traceable, you're cooperating with law enforcement. How 550 00:31:02,600 --> 00:31:04,640 Speaker 2: do you sort of square that tension? 551 00:31:05,040 --> 00:31:08,920 Speaker 4: So he's the thing, right, So, sure, blockchains are transparent, 552 00:31:09,240 --> 00:31:14,320 Speaker 4: and they are not necessarily anonymous, they're pseudonymous. So with 553 00:31:14,520 --> 00:31:17,920 Speaker 4: proper CoSystem monitoring tools, and we spent ten years to 554 00:31:17,960 --> 00:31:22,520 Speaker 4: perfect this, we can trace transactions. We can prove that 555 00:31:22,600 --> 00:31:27,160 Speaker 4: criminals are found and punished. Let me give you an example. 556 00:31:27,440 --> 00:31:30,960 Speaker 4: I think less than one year ago, our internal investigation 557 00:31:31,040 --> 00:31:34,440 Speaker 4: team started to follow certain transactions, and they got some 558 00:31:34,520 --> 00:31:39,560 Speaker 4: alerts from our triggers and configurations of our monitoring systems, 559 00:31:39,960 --> 00:31:43,280 Speaker 4: and we found out that there was a potential pig 560 00:31:43,360 --> 00:31:50,080 Speaker 4: butchering network that yeah, that was converting or using USDT, 561 00:31:50,240 --> 00:31:52,920 Speaker 4: and that was on all the newspapers then eventually, but 562 00:31:53,800 --> 00:31:57,600 Speaker 4: it ended up that Tetor was the company that initially 563 00:31:57,640 --> 00:32:01,560 Speaker 4: found out that there was this pig butchering scheme and 564 00:32:01,600 --> 00:32:06,280 Speaker 4: then contacted law enforcement and we all together with law enforcement, 565 00:32:06,400 --> 00:32:10,760 Speaker 4: we conducted the investigation and we decided to freeze these assets. 566 00:32:10,880 --> 00:32:13,880 Speaker 4: These assets amounted to two hundred and twenty million dollars 567 00:32:14,320 --> 00:32:18,240 Speaker 4: now all on the newspapers. There was the headline, oh, yes, 568 00:32:18,320 --> 00:32:20,880 Speaker 4: it is being used by the pig butchers, but actually 569 00:32:21,360 --> 00:32:25,840 Speaker 4: not many understand the actual process. So pig bachering or 570 00:32:26,040 --> 00:32:29,960 Speaker 4: romance scam happens when you have might have a girl 571 00:32:30,000 --> 00:32:32,880 Speaker 4: contacting a guy online asking for some money to pay 572 00:32:32,920 --> 00:32:35,479 Speaker 4: the rent and or whatever. It's crazy that this amounted 573 00:32:35,480 --> 00:32:38,200 Speaker 4: to two hundred million dollars, but it is what it is. 574 00:32:38,720 --> 00:32:43,360 Speaker 4: But this girl that contacts the guy what will not 575 00:32:43,520 --> 00:32:46,880 Speaker 4: ask for us will ask for a payment through a 576 00:32:47,000 --> 00:32:50,600 Speaker 4: payment processor. They will usually send a link so there 577 00:32:50,640 --> 00:32:54,440 Speaker 4: is a guy that will swipe its card or input 578 00:32:54,440 --> 00:32:57,200 Speaker 4: the car numbers on a website to do a payment 579 00:32:57,320 --> 00:33:00,120 Speaker 4: to what he thinks is a nice girl, and and 580 00:33:00,320 --> 00:33:03,560 Speaker 4: that payment goes through another payment processor, then goes to 581 00:33:03,640 --> 00:33:06,960 Speaker 4: a cryptocurrency exchange and that gets converted to usday moved 582 00:33:07,000 --> 00:33:11,680 Speaker 4: on chain. So three different opportunities failed in the traditional 583 00:33:11,680 --> 00:33:14,800 Speaker 4: financial system when the credit cards is being wiped and 584 00:33:14,520 --> 00:33:18,080 Speaker 4: then the payment processor fails to recognize the issue and 585 00:33:18,120 --> 00:33:22,800 Speaker 4: all that, so three times people and institutions fail to 586 00:33:22,880 --> 00:33:26,360 Speaker 4: freeze that transaction and recover the funds. And then when 587 00:33:26,360 --> 00:33:28,120 Speaker 4: it gets to us it we find it out and 588 00:33:28,160 --> 00:33:30,040 Speaker 4: we freeze it and we can return the money to 589 00:33:30,040 --> 00:33:33,080 Speaker 4: the legitimate owners. So that is the headline that should 590 00:33:33,080 --> 00:33:35,040 Speaker 4: have been there, because it's the right one, is the 591 00:33:35,040 --> 00:33:35,800 Speaker 4: correct one. 592 00:33:36,240 --> 00:33:38,880 Speaker 3: That all makes sense to me. However, you know, the 593 00:33:38,920 --> 00:33:43,880 Speaker 3: definition of what's criminal can be a spectrum. It can 594 00:33:44,000 --> 00:33:47,360 Speaker 3: change by culture, can change by time. So for example, 595 00:33:47,360 --> 00:33:50,000 Speaker 3: in the US, it's illegal to deal drugs, but in 596 00:33:50,040 --> 00:33:54,160 Speaker 3: another country it may be illegal to distribute bibles or 597 00:33:54,200 --> 00:33:58,280 Speaker 3: distribute condoms to an NGO or anything like that. There 598 00:33:58,280 --> 00:34:02,080 Speaker 3: are also certain circumstances in which capital flight could be 599 00:34:02,160 --> 00:34:05,239 Speaker 3: considered a crime. And when you talk about some of 600 00:34:05,280 --> 00:34:09,319 Speaker 3: these countries with intense devaluation of their currencies, I could 601 00:34:09,320 --> 00:34:12,200 Speaker 3: imagine a foreign minister in one of these em countries 602 00:34:12,239 --> 00:34:16,799 Speaker 3: saying tether is contributing to capital flight because our own 603 00:34:16,920 --> 00:34:19,760 Speaker 3: city making are making it. It's making it very easy 604 00:34:19,800 --> 00:34:22,680 Speaker 3: for them to move their dollar assets, to get quire 605 00:34:22,800 --> 00:34:24,960 Speaker 3: dollar assets in a way that we would never allow 606 00:34:25,320 --> 00:34:30,840 Speaker 3: through our traditional regulated banking system. You talk about working 607 00:34:30,880 --> 00:34:34,879 Speaker 3: with law enforcement, what if a law enforcement agency within 608 00:34:34,920 --> 00:34:36,920 Speaker 3: one of these countries says no, like, we do not 609 00:34:37,160 --> 00:34:40,279 Speaker 3: want our population swapping our currency to be able to 610 00:34:40,280 --> 00:34:41,280 Speaker 3: hold dollar assets. 611 00:34:41,880 --> 00:34:44,000 Speaker 4: Very good points. So first of all, it's a matter 612 00:34:44,000 --> 00:34:47,720 Speaker 4: of the education, right they I met with the finance 613 00:34:47,800 --> 00:34:52,080 Speaker 4: minister last year and I thought, working in that meeting, 614 00:34:52,200 --> 00:34:55,080 Speaker 4: I thought, well, he will be very annoyed also for 615 00:34:55,160 --> 00:34:57,880 Speaker 4: what we are doing. I will not name the country, 616 00:34:57,360 --> 00:35:01,279 Speaker 4: but I thought that, and and then I went there 617 00:35:01,320 --> 00:35:04,839 Speaker 4: and actually and that was something that I was going 618 00:35:04,880 --> 00:35:08,920 Speaker 4: to explain to him anyway. But actually what we agreed 619 00:35:08,960 --> 00:35:12,160 Speaker 4: on is that sure, many people in those countries are 620 00:35:12,280 --> 00:35:16,760 Speaker 4: using USDT to fly and fight inflation and the evaluation 621 00:35:16,800 --> 00:35:20,040 Speaker 4: of their national currencies. But on the other side, there 622 00:35:20,040 --> 00:35:22,719 Speaker 4: are billions of dollars that are flowing in the form 623 00:35:22,760 --> 00:35:29,400 Speaker 4: of USDT for emittancies. So actually USDT is counterbalancing those outflows, 624 00:35:29,400 --> 00:35:32,720 Speaker 4: if you will, with the new inflows and new faster 625 00:35:33,200 --> 00:35:37,360 Speaker 4: and cheaper inflows when it comes to emittancies. So the 626 00:35:37,480 --> 00:35:40,680 Speaker 4: average percentage of a GDP of an emerging market when 627 00:35:40,680 --> 00:35:43,239 Speaker 4: it comes to emittanc is twenty percent. For Philippines is 628 00:35:43,280 --> 00:35:46,640 Speaker 4: thirty three billion dollars per year, and if you look 629 00:35:46,680 --> 00:35:50,080 Speaker 4: at many other emerging markets, twenty percent is probably the lowbar. 630 00:35:50,320 --> 00:35:53,200 Speaker 4: There are countries that have forty fifty, sixty, eighty percent 631 00:35:53,560 --> 00:35:57,359 Speaker 4: of the GDP is remittancies. So actually we make remittancies 632 00:35:57,440 --> 00:35:59,880 Speaker 4: cheaper because if you look at you know, the traditional 633 00:36:00,040 --> 00:36:03,880 Speaker 4: remittancies companies, they charge from six to twenty eight percent 634 00:36:04,000 --> 00:36:08,720 Speaker 4: to move money internationally. So that is something that really 635 00:36:08,760 --> 00:36:13,600 Speaker 4: well resonates with the other country prime ministers, with institutions 636 00:36:13,640 --> 00:36:16,600 Speaker 4: in these countries and so on. So in our point 637 00:36:16,640 --> 00:36:19,399 Speaker 4: of view, we need to work primarily with US law 638 00:36:19,440 --> 00:36:24,000 Speaker 4: enforcement and law enforcement, and we tend to not work 639 00:36:24,040 --> 00:36:26,200 Speaker 4: with the tyrannical countries law enforcements. 640 00:36:26,440 --> 00:36:30,480 Speaker 2: Okay, so we started this conversation talking about how big 641 00:36:30,640 --> 00:36:34,440 Speaker 2: you've grown, and you know I mentioned you are an 642 00:36:34,520 --> 00:36:38,800 Speaker 2: actual presence in the treasury market nowadays in the repo market. 643 00:36:39,440 --> 00:36:43,680 Speaker 2: As your holdings get larger, would you ever be tempted 644 00:36:43,760 --> 00:36:47,560 Speaker 2: to maybe I don't know if it invests is the 645 00:36:47,640 --> 00:36:52,120 Speaker 2: right word, but invest, trade a little bit more, maybe 646 00:36:52,160 --> 00:36:57,640 Speaker 2: extend into slightly riskier assets bitcoin, I don't know. Do 647 00:36:57,680 --> 00:36:58,480 Speaker 2: you diversify? 648 00:36:59,360 --> 00:37:03,000 Speaker 4: So our reserves are in the majority, quite a higher 649 00:37:03,040 --> 00:37:06,319 Speaker 4: majority of US treasuries short term. We have a bit 650 00:37:06,320 --> 00:37:08,960 Speaker 4: of gold and we have a bit of bitcoin. The 651 00:37:09,000 --> 00:37:13,320 Speaker 4: reason for that is that there is in the emerging markets, 652 00:37:13,320 --> 00:37:17,960 Speaker 4: developing countries, those other two things are very well respected 653 00:37:18,040 --> 00:37:21,319 Speaker 4: and of much interest at the same time. That's why 654 00:37:21,400 --> 00:37:24,799 Speaker 4: also we keep very good amount of billions within the 655 00:37:24,840 --> 00:37:28,160 Speaker 4: access reserves to also prove to everyone that we're not 656 00:37:28,239 --> 00:37:32,040 Speaker 4: here to speculate. We have the entire risk management very solid. 657 00:37:32,719 --> 00:37:35,319 Speaker 4: Even if bitcoin was going to zero, the company would 658 00:37:35,320 --> 00:37:39,160 Speaker 4: still have several billion dollars in access equity. So that's 659 00:37:39,239 --> 00:37:40,960 Speaker 4: the message we want to give. I mean, if it 660 00:37:41,000 --> 00:37:45,960 Speaker 4: is important to perfect a product that is very interesting 661 00:37:46,080 --> 00:37:48,160 Speaker 4: for the audience, but at the same time prove that 662 00:37:48,200 --> 00:37:51,000 Speaker 4: you are solid, that you're strong, and again we are 663 00:37:51,120 --> 00:37:54,920 Speaker 4: very happy to see regulations moving towards the reinforcement of 664 00:37:55,000 --> 00:37:57,560 Speaker 4: what could be held in reserve by stable coins. 665 00:37:57,719 --> 00:38:01,120 Speaker 2: So summing it all up again and the company has 666 00:38:01,160 --> 00:38:05,040 Speaker 2: grown quite a lot and actual presence in traditional financial 667 00:38:05,080 --> 00:38:09,400 Speaker 2: markets nowadays. What's the biggest risk to your business nowadays? 668 00:38:09,480 --> 00:38:09,600 Speaker 4: What? 669 00:38:10,560 --> 00:38:12,560 Speaker 2: This is such a cliche, but what keeps you up 670 00:38:12,600 --> 00:38:14,040 Speaker 2: at night? What do you worry about? 671 00:38:15,040 --> 00:38:18,440 Speaker 4: Yes, could be. I mean, I'm sure that this will 672 00:38:19,080 --> 00:38:22,960 Speaker 4: sound like an obvious and well crafted well answer, well, 673 00:38:23,000 --> 00:38:27,480 Speaker 4: maybe not well crafted, but nevertheless, I think that I 674 00:38:27,520 --> 00:38:30,839 Speaker 4: want to keep going doing what I have been doing 675 00:38:30,840 --> 00:38:33,000 Speaker 4: and what my team has been doing for the last 676 00:38:33,040 --> 00:38:36,359 Speaker 4: ten years. The biggest risk to me is that you know, 677 00:38:36,520 --> 00:38:40,160 Speaker 4: for you know, one reason or the other the for example, 678 00:38:40,200 --> 00:38:43,799 Speaker 4: the US or other countries don't understand the opportunity the 679 00:38:43,840 --> 00:38:47,360 Speaker 4: potential of a stable corn industry when it comes to 680 00:38:47,400 --> 00:38:50,640 Speaker 4: tether I think that really in the last month, we 681 00:38:50,800 --> 00:38:54,640 Speaker 4: have been taking so many meetings within the Hill and 682 00:38:54,760 --> 00:38:58,960 Speaker 4: everyone has been incredibly receptive. So now there is proper 683 00:38:59,120 --> 00:39:01,759 Speaker 4: education and understanding in what we are doing. But what 684 00:39:01,920 --> 00:39:04,799 Speaker 4: keeps me up the night is simply the fact that 685 00:39:05,320 --> 00:39:07,800 Speaker 4: we have the biggest opportunity in the history of humanity 686 00:39:08,200 --> 00:39:11,280 Speaker 4: to actually include billions of people in the financial world, 687 00:39:11,320 --> 00:39:12,320 Speaker 4: and I don't want to fail. 688 00:39:12,880 --> 00:39:15,160 Speaker 3: Very very high minded. I was going to a real 689 00:39:15,239 --> 00:39:17,880 Speaker 3: quick question. Are you talking about other Wall Street banks 690 00:39:18,080 --> 00:39:21,000 Speaker 3: diversifying away from Caunter Fitzgerald or is that going to 691 00:39:21,000 --> 00:39:24,600 Speaker 3: be the only bank where you hold your treasury assets? 692 00:39:25,040 --> 00:39:28,760 Speaker 4: So treasuries are and the beauty and the difference between 693 00:39:28,880 --> 00:39:33,400 Speaker 4: holding treasuries and holding uninsured cash deposits, as our competitor 694 00:39:33,480 --> 00:39:36,319 Speaker 4: is is that if anything happens, you can take your 695 00:39:36,480 --> 00:39:39,480 Speaker 4: securities and move them anywhere else. Right, So it's a 696 00:39:39,600 --> 00:39:42,840 Speaker 4: very easy and clean process. But I must say that 697 00:39:42,920 --> 00:39:46,799 Speaker 4: counter Fitzgerald is the best company that believed in this 698 00:39:47,000 --> 00:39:51,000 Speaker 4: industry already two three years ago, when no one else 699 00:39:51,120 --> 00:39:54,560 Speaker 4: understood this industry two three years ago. So we are 700 00:39:54,760 --> 00:39:56,879 Speaker 4: very respectful our relationship. 701 00:39:57,280 --> 00:39:59,640 Speaker 2: Plus you have a friend in the White House, right. 702 00:40:00,080 --> 00:40:01,839 Speaker 4: Great guy, but I'm not allowed to talk to him. 703 00:40:02,040 --> 00:40:04,120 Speaker 3: Okay, okay, oh really good? 704 00:40:04,560 --> 00:40:06,799 Speaker 2: All right, Pallo, Thank you so much for coming on 705 00:40:06,880 --> 00:40:07,759 Speaker 2: all thoughts. 706 00:40:07,800 --> 00:40:09,799 Speaker 4: Thank you for having me. Was very exciting. That was 707 00:40:09,880 --> 00:40:10,319 Speaker 4: very fun. 708 00:40:10,360 --> 00:40:11,600 Speaker 3: Thank you so much for coming you. 709 00:40:11,840 --> 00:40:26,239 Speaker 4: Thank you, thank you, Joe. 710 00:40:26,280 --> 00:40:29,640 Speaker 2: That was so interesting. Obviously, there have always been a 711 00:40:29,680 --> 00:40:33,160 Speaker 2: lot of questions swirling around Tether, so it was good 712 00:40:33,239 --> 00:40:36,400 Speaker 2: to you know, put some of them to the CEO. 713 00:40:36,640 --> 00:40:38,799 Speaker 3: Can I say that when Tether reached out to us 714 00:40:38,800 --> 00:40:40,400 Speaker 3: about there, like, oh, do you want to have? Oh 715 00:40:40,440 --> 00:40:42,920 Speaker 3: the CEO on the podcast? I thought there was like 716 00:40:42,960 --> 00:40:45,440 Speaker 3: at least a fifty percent chance that we were going 717 00:40:45,520 --> 00:40:47,640 Speaker 3: to get like deep faked, that it was like going 718 00:40:47,680 --> 00:40:50,040 Speaker 3: to be some North Korean hackers and that we're going 719 00:40:50,080 --> 00:40:52,120 Speaker 3: to like have to click into a link of that 720 00:40:52,239 --> 00:40:54,360 Speaker 3: was like something that looked like the word zoom but 721 00:40:54,400 --> 00:40:57,360 Speaker 3: that actually wasn't and then enter credential and then there 722 00:40:57,360 --> 00:41:00,800 Speaker 3: would be a video and your private AI, So like yeah, really, 723 00:41:00,880 --> 00:41:04,160 Speaker 3: you know, Center Private Keys, here's an AI representation of 724 00:41:04,200 --> 00:41:06,319 Speaker 3: Paulo ut or do we know? I'm still not sure. 725 00:41:06,360 --> 00:41:09,080 Speaker 3: It could be that when this comes out, maybe we're 726 00:41:09,120 --> 00:41:10,919 Speaker 3: going to hear no. I don't think so, but maybe 727 00:41:10,960 --> 00:41:11,279 Speaker 3: when it. 728 00:41:11,200 --> 00:41:13,839 Speaker 2: Comes at a at a minimum, we can we can 729 00:41:13,880 --> 00:41:17,240 Speaker 2: confirm the existence of Pallo, Right. 730 00:41:17,080 --> 00:41:19,640 Speaker 3: You could confirm that we talked to someone who looks 731 00:41:19,760 --> 00:41:22,040 Speaker 3: a lot like every picture of Polo or do we 732 00:41:22,160 --> 00:41:24,400 Speaker 3: know that we could confirm No. I thought it was 733 00:41:24,800 --> 00:41:29,800 Speaker 3: really interesting. You know, it's a big force. It seems 734 00:41:29,840 --> 00:41:33,560 Speaker 3: like a pretty big, real, like powerful entity within global finance. 735 00:41:33,840 --> 00:41:36,359 Speaker 2: Yeah, this is the thing. And I guess, going back 736 00:41:36,400 --> 00:41:40,640 Speaker 2: to where we started this whole discussion again, like fifteen 737 00:41:40,719 --> 00:41:43,800 Speaker 2: years ago or whatever, I don't think anyone would have 738 00:41:43,880 --> 00:41:47,879 Speaker 2: expected that we're in a world where stable coins are 739 00:41:47,880 --> 00:41:50,400 Speaker 2: so large, and we're in a world where, you know, 740 00:41:50,800 --> 00:41:55,520 Speaker 2: we're really preparing for stable coins to become even bigger 741 00:41:55,640 --> 00:41:58,319 Speaker 2: in the form of that stable coin bill, putting in 742 00:41:58,800 --> 00:42:00,560 Speaker 2: potential guardrails, that sort of thing. 743 00:42:00,760 --> 00:42:03,239 Speaker 3: What a sick business model. I mean, let's just talk 744 00:42:03,280 --> 00:42:06,319 Speaker 3: about it's so sick. They're making so much money for 745 00:42:06,400 --> 00:42:08,680 Speaker 3: like no effort. And you asked, like, what's so complicated 746 00:42:08,680 --> 00:42:11,719 Speaker 3: about the business. It's clearly not that complicated. They just 747 00:42:11,760 --> 00:42:13,520 Speaker 3: hold a bunch of money and then they have a token. 748 00:42:13,600 --> 00:42:15,080 Speaker 3: They just got to match it one to one and 749 00:42:15,120 --> 00:42:17,040 Speaker 3: that's all. And then they collect the interests and they 750 00:42:17,080 --> 00:42:19,920 Speaker 3: remit none of that to their holders. I do wonder, 751 00:42:20,000 --> 00:42:22,160 Speaker 3: you know, I asked that about like that margin, whether 752 00:42:22,200 --> 00:42:24,680 Speaker 3: it's going to compress. Paulo talked about Okay, in the 753 00:42:24,800 --> 00:42:27,560 Speaker 3: US maybe for institutional that margin and it's important. You 754 00:42:27,600 --> 00:42:30,800 Speaker 3: gotta wonder maybe someone will enter the non US markets 755 00:42:30,840 --> 00:42:33,400 Speaker 3: with the ideas like not only can you hold dollar assets, 756 00:42:33,400 --> 00:42:35,799 Speaker 3: but we'll give you some we'll remit that yield to you. 757 00:42:36,320 --> 00:42:39,720 Speaker 3: But in the meantime, that's a money printer printing money. 758 00:42:39,800 --> 00:42:40,160 Speaker 4: Yeah. 759 00:42:40,200 --> 00:42:41,759 Speaker 2: Literally, all right, shall we leave it there. 760 00:42:41,840 --> 00:42:42,520 Speaker 4: Let's leave it there. 761 00:42:42,719 --> 00:42:45,360 Speaker 2: This has been another episode of the Odd Thoughts podcast. 762 00:42:45,520 --> 00:42:48,879 Speaker 2: I'm Tracy Alloway. You can follow me at Tracy Alloway and. 763 00:42:48,840 --> 00:42:51,759 Speaker 3: I'm Jill W. Wassenthal. You can follow me at the Stalwart. 764 00:42:52,040 --> 00:42:56,000 Speaker 3: Follow our guest Paolo Arduino. He's at Paolo Arduino. Follow 765 00:42:56,040 --> 00:42:59,360 Speaker 3: our producers Kerman Rodriguez at Kerman Arman, dash O Bennett 766 00:42:59,360 --> 00:43:03,160 Speaker 3: at dashbod In, Kale Brooks at Kalebrooks. From our Oddlots content, 767 00:43:03,239 --> 00:43:06,080 Speaker 3: go to Bloomberg dot com slash odd Lots, where we 768 00:43:06,120 --> 00:43:08,719 Speaker 3: have all of our episodes as well as the daily newsletter, 769 00:43:08,920 --> 00:43:10,960 Speaker 3: and you can shout about all of these topics twenty 770 00:43:10,960 --> 00:43:14,439 Speaker 3: four to seven, including crypto in our discord Discord dot 771 00:43:14,480 --> 00:43:16,160 Speaker 3: gg slash od Loots and. 772 00:43:16,320 --> 00:43:18,560 Speaker 2: If you enjoy odd Lots, if you like it when 773 00:43:18,600 --> 00:43:21,120 Speaker 2: we check in on stable coins, then please leave us 774 00:43:21,160 --> 00:43:24,960 Speaker 2: a positive review on your favorite podcast platform. And remember, 775 00:43:25,080 --> 00:43:27,799 Speaker 2: if you are a Bloomberg subscriber, you can listen to 776 00:43:27,920 --> 00:43:31,080 Speaker 2: all of our episodes absolutely ad free. All you need 777 00:43:31,120 --> 00:43:33,840 Speaker 2: to do is find the Bloomberg channel on Apple Podcasts 778 00:43:33,840 --> 00:43:36,760 Speaker 2: and follow the instructions there. Thanks for listening. 779 00:44:01,920 --> 00:44:02,600 Speaker 4: In an e.