crypto tokens that they're listing.

So for a lot of these distribution platforms that already exist offshore, tokenized stocks are incredibly easy for them to list and expand access to their own user base.

On the piece around collateral, I think that one is where we're starting to see more and more traction, too, because there is this incredible ecosystem that already exists with DeFi that can operate 24-7.

People think of Aave and margin lending and the like, but increasingly there's examples, too, like Hyperliquid, Perpetual Futures, where people can express an opinion on an asset 24-7.

The perks markets, it's a perpetual future for those on the line that don't really know.

A perpetual future, think of it as like a normal future, but there's no rollover.

There's no expiry.

from a

Right.

You see a price that you like.

That price is being streamed, typically fetched via our own APIs.

It has a little bit of slippage tolerance, just like you would buy any crypto.

The moment you see a price that you like, you say, "Yes, I'd like to buy it." At that point, uh, an RFQ is kicked off.

So there are no DEX pools on our tokens, right? I mean, people can deploy them, but we def- definitely do not deploy them.

The, the token that someone wants to buy typically is not on-chain yet the moment they click that button that says buy.

Mm-hmm

How does that process take place if I'm holding that PERP when the IPO occurs and there's available stock out on the market?

Yeah, it's a great question because not only do you see a proliferation right now in the spot tokens that Ondo offers, but there's also a proliferation of these perpetual futures platforms that also offer exposure to stocks, even pre-IPO stocks.

When a PERP launches on a pre IPO stock, you can only do that really with a PERP because there's no real way to actually acquire the underlying physical.

So the spot tokenization doesn't work yet.

On a PERP platform, everything is purely synthetic exposure.

So it is absolutely possible to create a perpetual future.

At the time of IPO, that pre IPO stock will just converge to the actual price that it is trading on the NASDAQ or the New York Stock Exchange and the like.

All right, as far as the banks, do you think that the banks are truly against clarity or is it just they haven't got the right match up yet for trying to make this new world work?

How does that process take place if I'm holding that perp when the IPO occurs and there's available stock out on the market?

Yeah, it's a great question because not only do you see a proliferation right now in the spot tokens that Ondo offers, but there's also a proliferation of these perpetual futures platforms that also offer exposure to stocks, even pre-IPO stocks.

When a PERP launches on a pre-IPO stock, you can only do that really with a PERP because there's no real way to actually acquire the underlying physical.

So the spot tokenization doesn't work yet.

On a PERP platform, everything is purely synthetic exposure.

So it is absolutely possible to create a perpetual future.

At the time of IPO, that pre-IPO stock will just converge to the actual price that it is trading on the NASDAQ or the New York Stock Exchange and the like.

All right, as far as the banks, do you think that the banks are truly against clarity or is it just they haven't got the right match up yet for trying to make this new world work?

Ian, for you at Ondo Finance, how do you think about just Ondo's role and Ondo's approach, given that this whole system is finally starting to wake up to the potential here?

Yeah, it's a great question.

We get that asked quite a bit.

It's like, hey, is what all these stratified firms doing now, is that competitive with you or does it actually help you? Yeah.

And I actually personally think it really helps us just like we help these stratified firms.

The partnership we have with Franklin Templeton is an example of that, but allow me to illustrate that a little bit.

So for those of you who don't know Ondo, what we do is we tokenize treasuries, stocks, and ETFs.

Slowly realizing I'm opening up the opportunity for my competitors and peers as well, but I'd rather have a bigger marketplace to compete in than a small little marketplace without volumes.

Why now? What's sort of the, the trends that are making things really pop for institutions and retail, whoever's using sort of this, this tokenization world? What's, what's happening now that makes it very relevant?

Yeah, totally.

So for everyone listening, very briefly about Ondo, we put traditional financial assets on public blockchain rails to try to make them more accessible to a global audience.

It's very similar to what stable coins did for the US dollar, we try to do for Treasury stocks and ETFs.

So those are the asset classes that we focus on, Treasury-type assets and funds, stocks and ETFs.

We put them on blockchain rails in a stable coin-like format, meaning that anyone globally can have access to them and buy them twenty-four five right now on certain crypto exchanges, twenty-four seven.

We are the market leader in tokenized Treasuries.

How do you think about the chains that you're working with? What-- You know, the-- and just sort of the product roadmap for what Ondo is focused on.

Are you blown away by the amount of adoption we're seeing?

Oh, for sure.

And I mean, relative to 2016, yes, but even relative, quite frankly, to 2023, it's just night and day, right? I think the space has come a very, very long way.

The infrastructure has been developed a lot more than back in 2016.

The liquidity that's available also grew quite a bit.

I mean, this really is the innovation of the stablecoin that really was a key unlock for this entire space to really mature and unlock because you could have crypto that was around in the ecosystem and you could even put traditional financial assets on a blockchain all the way back to 2016.

But what were you going to do with the actual settlement of these instruments you needed a cash leg which ended up being a stable coin leg so stable coins truly were the first zero to one innovation i think in how to make all this work um which back in 2016 obviously i mean stable coins existed but they were so small it didn't really matter uh i think d5 was the other massive zero to one innovation where all of a sudden people could actually see how this could work in a 24 7 autonomous fashion and there was a ton of innovation happening Back in 2020, 2021 in the space.

Tell us a bit about that and maybe some other examples of institutions using Ondo.