Daily Axis

Visa and Transak Partnership

We kicked things off discussing the partnership between Visa and Transak, which is set to revolutionize how people use their crypto wallets. With Transak joining Visa's Direct program, users in over 140 countries can now spend their crypto assets using a Visa card, converting them to local currency on the fly. This is a game-changer for travelers and those living in countries with volatile currencies, as it provides a secure and immediate way to access funds without the need for traditional banking.

Ethereum ETF Speculation

Next up, we touched on the potential approval of an Ethereum spot ETF by the SEC, expected around May 23rd, 2024. This follows the approval of a Bitcoin ETF earlier in the year. We discussed the implications for the market and how the ETF's structure might differ from Bitcoin's due to Ethereum's variable issuance policy.

PayPal Ventures Invests in Mesh

In investment news, PayPal Ventures made a significant move by investing $6.5 million into Mesh, a company aiming to be the 'plaid of crypto,' facilitating the movement of assets across different blockchain networks. Notably, $5 million of this investment was made using PayPal's own stablecoin, PYUSD, showcasing a real-world application of stablecoins in institutional investment.

The Rise of Stablecoins

We wrapped up the episode reflecting on the growing importance of stablecoins in the crypto ecosystem. Stablecoins offer a way to transact with the stability of fiat currencies while leveraging the benefits of blockchain technology. This trend is being recognized by major players like PayPal and is expected to continue growing in 2024.

Hey everyone, Adam here with a quick recap of our latest Interaxis podcast episode where Ron and I dove deep into the world of Bitcoin ETFs and the burgeoning field of asset tokenization.

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Bitcoin ETFs: The Talk of the Town

We kicked off the episode discussing the much-anticipated Bitcoin ETFs, which have been a hot topic for the past several months. We're both ready to move past this subject, but it's undeniable that these ETFs have made a significant impact, with inflows reaching nearly $2 billion into spot ETFs. BlackRock led the charge, being the first to a billion dollars in new inflows.

Despite the success in terms of trading volume and inflows, the price of Bitcoin itself hasn't seen a corresponding rise, which is a bit of a puzzle. We also touched on the outflows from Grayscale's Bitcoin Trust and how it's affecting the market.

The Value of Bitcoin: An Enigma

The conversation then shifted to the value of Bitcoin, a topic that even the likes of Jamie Dimon find challenging to grasp. We discussed the difficulty in valuing an asset like Bitcoin, which doesn't produce cash flows or have a physical presence like gold. The price predictions for Bitcoin vary wildly, and we emphasized the importance of doing your own research rather than relying on analysts' forecasts.

The Rise of Tokenization

Lastly, we explored the concept of tokenization, which is gaining traction and could revolutionize how we interact with various asset classes. Tokenization promises increased transparency, liquidity, and instant settlement, potentially opening up investment opportunities to non-accredited investors and making every asset as accessible as publicly traded stocks.

The episode wrapped up with our thoughts on how tokenization could impact traditional financial systems, like the stock clearing process, and the potential for it to democratize access to a wider range of investments.

Don't forget to check out the full episode for a more in-depth discussion, and subscribe to our newsletter for the latest updates. Thanks for tuning in, and we'll catch you in the next one!

This summary is based on the Interaccess podcast episode transcript provided and may not include all topics discussed.

Welcome back to the Interaxis podcast with your hosts, Adam and Ron. In today's episode, we dove into the recent launch of Bitcoin spot ETFs.

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Bitcoin Spot ETFs Launch

Yesterday marked a historic day in the financial world with the launch of Bitcoin spot ETFs from around 10 to 11 different companies. This event has been highly anticipated, especially by financial advisors looking to easily include Bitcoin exposure in their clients' portfolios, such as IRAs, without the need for self-directed accounts.

Fee Wars and ETF Performance

We discussed the fee structures of these new ETFs and the ongoing fee war, highlighting VanEck's aggressive move to drop their fees to zero through August, followed by a low 19 basis points thereafter. This competitive landscape is something to watch closely.

Inflows and Market Reaction

The inflows into these ETFs were significant, with Bitwise seeing $237.9 million and Fidelity's FBTC attracting $720 million in new money. Despite these impressive numbers, the market's reaction to the ETFs was somewhat muted, with Bitcoin's price not surging as much as expected. We speculated on the reasons behind this, including potential disappointment in the inflow amounts and profit-taking after the initial excitement.

Bitcoin's Price Volatility

We also touched on the price volatility of Bitcoin, noting that it reached around $49,000 before settling back down. The ETFs should move in tandem with Bitcoin's price, but as financial advisors, it's crucial to remember that Bitcoin trades 24/7, which can lead to price discrepancies with the ETFs that follow traditional market hours.

Coinbase and Circle IPO

The conversation shifted to Coinbase's puzzling stock performance, which doesn't seem to reflect the company's potential for fee generation from these ETFs. We also discussed Circle's renewed attempt at an IPO and the implications for USDC in the DeFi space and the regulatory landscape.

Looking Ahead

As we look forward to next week, we'll continue to monitor the ETFs' impact on Bitcoin and vice versa. We also anticipate the market's behavior over the upcoming three-day weekend, which could introduce more volatility.

Remember to stay informed, engage with your clients, and leverage our resources like the newsletter, live sessions, and courses to stay on top of the crypto market.

That's all for today's episode. Have a great weekend, and stay safe in the crypto space!

Summary: ETF Week and PayPal's Stablecoin

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In this episode, we discuss the highly anticipated Bitcoin ETF and its potential impact on the crypto market. With the SEC's deadline approaching, there is speculation that all 11 fund companies that have submitted ETF applications will be approved. This could lead to a significant increase in demand for Bitcoin, with estimates ranging from $5 billion to $50 billion flowing into the ETFs. The approval of the ETFs could also pave the way for more companies to allow their employees to invest in Bitcoin through their 401k plans and potentially hold Bitcoin on their balance sheets.

While there is talk of "selling the news" and short-term traders taking advantage of the ETF announcement, the long-term holders and investors are unlikely to be swayed by short-term market fluctuations. The limited supply of Bitcoin and the potential for increased adoption and regulatory acceptance make it a valuable asset in the mid to long term.

We also discuss PayPal's efforts to boost the adoption of its stablecoin, PYUSD. By integrating with DeFi protocols like Curve and Aave, PayPal aims to provide more liquidity and utility for its stablecoin. This move could also contribute to the growth of the DeFi ecosystem as more users explore these platforms.

Overall, the ETF approval and PayPal's stablecoin initiatives highlight the evolving landscape of banking and finance, with companies like PayPal issuing their own stablecoins and changing the traditional notion of banking. As the crypto market continues to mature, it is crucial for financial advisors to understand these developments and help their clients navigate the opportunities and risks associated with cryptocurrencies.

The Interaxis podcast is dedicated to helping financial professionals stay informed about the latest developments in crypto, Web3, and alternative asset classes. The hosts express their desire to increase the frequency of podcast episodes due to the vast amount of information to cover in these areas. Their goal is to analyze and discuss the advancements in crypto, DeFi, and Web3, and how they will impact financial advisors and their clients. The podcast aims to provide valuable insights and information to assist financial professionals in navigating the rapidly evolving landscape of digital assets and understanding their implications for the financial industry.

In this episode, the hosts delve into the concepts of self-custody and ownership of assets and data. They emphasize the importance of individuals having greater control and ownership over their own assets and data, including loyalty points. Loyalty points are viewed as another form of data that individuals should be able to sell or transfer. The hosts provide examples such as Starbucks' loyalty program based on NFTs, where individuals can collect rewards and potentially sell or transfer them. They also explore the potential benefits of self-custody and ownership, such as increased security, transparency, and control over loyalty points and other assets. This concept of self-custody and ownership is seen as a crucial aspect of the evolving landscape of digital assets and blockchain technology.

During the episode, the hosts focus on two main topics: Bitcoin volatility and Visa's pilot of a loyalty program on Web3.

Regarding Bitcoin volatility, the hosts acknowledge recent fluctuations in its price. They briefly touch on the investment thesis of short-term buyers who aim to profit from Bitcoin's limited supply and potential increase in demand. However, they do not delve deeper into the reasons behind the volatility or provide specific analysis.

The hosts then shift their attention to Visa's pilot of a loyalty program on Web3. They highlight Visa's longstanding involvement in the crypto space and its exploration of utilizing crypto features like transparency and instant settlement. The loyalty program is built on Web3 technology, incorporating NFTs and wallets. The hosts speculate that users will be able to earn gamified rewards and experiences, including NFTs and tokens, and will require digital wallets to store them. They also mention the possibility of Visa partnering with other brands to issue these rewards. Drawing a parallel to Visa's partnerships with airlines and hotels for frequent flyer miles and points, the hosts suggest that Visa is responding to consumer preferences for experiential rewards.

Overall, the episode briefly touches on Bitcoin volatility but primarily focuses on Visa's pilot of a loyalty program on Web3. However, the discussion remains relatively high-level and lacks in-depth analysis or insights into these topics.

[00:01:13] Private credit offerings and interest rates.

[00:03:29] Leverage and Crypto Market Corrections.

[00:07:14] Grayscale Bitcoin trust and market volatility.

[00:11:37] Gambling on ETF approval.

[00:16:22] Short-term vs. long-term investment theses.

[00:20:57] Visa entering the Web3 loyalty program.

[00:22:51] Lack of familiarity with web3 wallets.

[00:26:23] Loyalty points as sellable assets.

[00:29:57] Keeping up with crypto.

🎙️ Welcome to the latest episode of the Interaxis Podcast!

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In this episode, we delve into a groundbreaking development in the banking world: Societe Generale (SocGen), the third-largest bank in Europe, has launched its own stablecoin. This move is not just an experiment; it represents a pivotal moment in the evolution of finance, reminiscent of the early days of banknotes and the Medici era.

🌍 **What's Happening in Europe: SocGen's Bold Step**

Join us as we explore how SocGen has embraced blockchain technology to issue a stablecoin fully compliant with EU regulations. This isn't a rogue move against regulatory frameworks; it's a stride in sync with the new regulatory landscapes, particularly the MICA regulations. We discuss how this stablecoin, pegged to the euro, is changing the game by being tradable on exchanges like Bitstamp, not just against traditional cryptocurrencies like Bitcoin or Ether but potentially against other global currencies.

🏦 **Beyond Central Banks: A New Era for Banking**

We delve into the implications of a major bank issuing its stablecoin, a concept previously the realm of central banks. This move signals a shift towards a decentralized financial system where banks could potentially issue tokens against a variety of assets, not just fiat currency. Imagine a future where you could deposit different types of assets to receive a bank's stablecoin, expanding the traditional concept of banking as we know it.

📈 **The Role of Financial Professionals in this New Era**

For financial professionals, this is a significant development. We're stepping into a world where financial transactions can occur outside the traditional banking system, utilizing blockchain technology. This shift requires a new understanding of safety, security, and investment in a decentralized environment. We discuss the potential of banks like Chase, Bank of America, and Wells Fargo to follow in SocGen's footsteps and the implications for the global financial landscape.

💡 **The Bigger Picture: Innovation, Regulation, and Adoption**

This episode isn't just about one bank's foray into stablecoins; it's about the broader implications of technological innovation, regulatory adaptations, and the gradual shift towards a decentralized financial system. We explore what this means for everyday transactions, the potential for other types of assets to be tokenized, and the role of financial advisors in navigating this new terrain.

🔊 Tune in to gain insights into how SocGen's move could be the catalyst for a significant transformation in how we perceive and engage with finance. Whether you're a financial advisor, investor, or simply curious about the future of finance, this episode offers a comprehensive look at the exciting developments in the banking sector and the burgeoning world of digital assets.

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#SocGen #Stablecoin #BlockchainBanking #DigitalFinance #InteraxisPodcast #FinancialInnovation #DecentralizedFinance #BankingEvolution

In this episode we have the opportunity to talk with Nelson Chu of Cadence.  We are following our current Theme of Lending and Blockchain.

Cadence is a platform that is providing investors with access to private credit securities.  They are using Blockchain on the backend to provide for more efficient administration.  

In this conversation with Nelson, we talk about how investors have an appetite for more alternative investments, especially those that can provide short term yield.  We also talk about their performance through the COVID lockdowns and economic uncertainty.  

Nelson's background in private credit markets help us take this discussion back to Traditional Finance, and discuss where he sees the market going based on current investing trends, and on current and new technology.

Cadence has been one of our favorite projects for a while, so we're glad to catch up with Nelson.

Find Cadence and Nelson:

Cadence - http://www.withcadence.io/
Twitter - @withcadence

Nelson Linked In

Find us:

Twitter - @Interaxis8
Website -
Linked In
YouTube - https://www.youtube.com/c/interaxis

In this podcast episode we have the opportunity to talk with a pioneer in the world of Crypto and Digital Asset lending - Trevor Smyth of Arctos Capital.

Trevor has an interesting start in the space.  His father, Randy, was in the construction equipment financing business for years.  After telling Randy about Crypto opportunities, Trevor finally flew Randy out to California, and spent days meeting with the Crypto entrepreneurs. 

Trevor and Randy then started Arctos Capital, sourcing capital for Crypto-backed Loans through Drawbridge Capital and Ledn.

Arctos is also now originating loans for Bitcoin mining, and using Cadence as the platform to facilitate those loans.

Trevor has a unique perspective in that he has financed Crypto-backed loans, and is now using Blockchain technology in Cadence to administer hardware-backed loans.

Please enjoy this episode.

Find Trevor and Arctos:

Website - https://www.arctos.capital/
Twitter - @ArctosCap
Linked In - Trevor Smyth

Other Mentions:
Cadence  - https://withcadence.io/
Drawbridge Capital - https://dbl.digital/

Find us at:

Twitter - @Interaxis8

Website - https://www.interaxis.io/

Linked In - Interaxis

Email - [email protected]

YouTube - https://www.youtube.com/c/interaxis

In this episode, we discuss several of the incentive mechanisms that have come about through Blockchain Technology and Decentralized Finance.

We start with Bitcoin, and the Proof-of-Work based incentive, block rewards and transaction fees.

We then move on to discuss some of the other cryptocurrencies that have gone to Proof-of-Stake, and even other hybrid incentive models. 

In an attempt to disintermediate, the developers have been forced to come up with new incentives to reward the behavior they want, and disincentives to punish the behavior that is not in the best interest of the network.

This starts our week of Incentives - videos and podcasts this week will all cover different incentives in crypto and digital assets, and how they are attempting to drive the technology and financial ecosystem forward.

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In this episode of the Interaxis Podcast, we talk with Oliver Muldoon, a Crypto and Blockchain writer and researcher.

We talk about Oliver's foray into crypto from the traditional finance world, where he was at a major bank to witness the 2008-2009 financial crisis first hand.  That sent him looking for better alternatives, where he found Crypto, and now, Decentralized Finance. 

Oliver also witnessed the ICO boom and bust, and knows some of the similarities with the Financial Crisis. 

Recently, Oliver was working with a company called Hive Terminal, which is a Slovenian company that offer the ability to factor invoices using Blockchain technology.  We talk about the benefits to the supply chain, and the efficiencies in this trade finance ecosystem.

The technology will also give more opportunities to those outside the big banks to participate in lending and financial services like factoring.

It was a very interesting discussion, and great addition to our focus on Tokenizing Real World Assets.

Find Oliver:

Twitter - @OliverMuldoon
Linked In - https://www.linkedin.com/in/olivermuldoon/

Find Hive Terminal:

Twitter - @hiveterminal
https://www.hiveterminal.com/en/

You can find us:

Twitter
Website
YouTube
[email protected]