Jim, Jim, thank you all for coming. Good. So, I'm Marc Tment, and you can tell by my accent that I'm French. I am the director of the Pyth Data Association. This is a Swiss non-profit organization, one of the two main structures developing the Pyth network, and the goal of Pyth is to give everyone access to the price of everything, anytime, anywhere.
And unfortunately for you, this afternoon I'm going to be talking about perhaps the least attractive things in the markets: market data and market structure. So I hope you won't fall asleep until the end, and overall the story will be divided into five verticals. The last two are mostly about the Pyth network. But first, we’ll explore why we created Pyth, why it makes sense, and why there’s a big opportunity to reimagine the entire marketplace industry, just like how blockchain transformed commerce. This is no longer just happening on centralized exchanges, whether it's TradFi or crypto it's TradFi or crypto .
But everything has become available 24/7 to everyone. So, first: why do we need a new type of market data provider? And if you know a little about Pyth, I won't use the word "oracle use the word "oracle ". This is a term from the past. But in general past.
But in general , if you are from TradFi, then when asked about market data, you will usually answer that it is terribly expensive and getting quality data is a getting quality data is a real nightmare. Traditional finance, as we know it, was built 30-40 years ago, and mostly not on technology, but on regulations and laws. Why do we at Pyth care about market data? Most people in the crypto community don't know, but the market data industry is estimated to be worth $50 billion. Every year, about 20-40 companies receive 90% companies receive 90% of this 50 billion.
This is the income level of a cryptocurrency from the top 10. And for 40 years nothing has changed. In case you didn't know, traditional exchanges like ICE, NASDAQ, or NYSE make 30-40% of their NYSE make 30-40% of their revenue from selling market data. Take Binance, liquidity pools, or liquidity pools, or any crypto project— any crypto project— they make zero money from this. So Pyth came about from the realization that the entire market data industry was built wrong, and it was that legal discovery that prompted us to launch Pyth.
Pyth was created primarily by trading firms that trade that trade any asset in the world, often 24/7 . But they create a ton of data, and the whole point was to collect a ton of private data from trading firms so that Pyth could aggregate it and then redistribute it; and all this to bypass the monopoly of the exchanges. Um, and why does Pyth work today and make sense today? It's a bit like how technology, iPhones, etc. have brought us to where we are today to where we are today : everything should be available 24/7, accessible to everyone, ideally everyone, ideally programmable through smart contracts.
And all of this together creates a great premise for also rethinking how market data should be created, distributed, and sold to everyone. So Pyth in general, and the way I explain it to my parents—it's like Spotify, Pyth is centrally located on the supply side. We have trading firms, exchanges, anyone who creates their own data can provide it to the Pyth network. Pyth aggregates them, and then we can distribute them to anyone who might need financial data. Whether you are an exchange, a DeFi app, a professional or a retail trader, you can buy Pyth data, and the whole idea of Pyth is not to recreate this oligopoly of the former exchanges, but to allow anyone with valuable private data to provide it.
We aggregate them and work on distribution. And that's basically what's behind my back, how Pyth is built. At the core, as fuel for the Pyth network, are all the companies, mostly trading firms, that provide data for the Pyth price level. Um, and all these entities, trading firms...it's something that took quite a few years, but we brought in some big names.
Whether it was Citadel, GTS, HRT, G-W, Wintermute, Jump Trading, Susquehanna—they all spent millions of dollars every year for years buying market data from exchanges; they created tons of data. Now we enable them to provide their oracle, the Pyth pricing tier, and get paid for it . And what's great about bringing in companies like Wintermute and others is that they trade every type of asset in the world. So we have coverage of about 3,000 assets today: from US stocks, commodities, US bonds, currencies, cryptocurrencies—you name it . And the idea itself is to provide convenience.
Today, when you buy market data, typically if you want to trade US stocks, you have to go to NASDAQ; if you want to trade commodities, you have to buy ICE data; for cryptocurrencies, you simply connect to the Binance API. With Pyth, the idea is this: data is great, it's fast, but it's also a huge convenience. You only need one data provider, one API, and you get access to all price streams, to the price of all assets. You. And, as I mentioned earlier, when we went public in the early 21st, we fell into the category of blockchain the category of blockchain oracles, which over time lost meaning for us lost meaning for us , because most people can transact with data inside the blockchain, and it's just the infrastructure.
And in infrastructure, you never have a significant advantage, and over time it becomes a commodity. But one thing: when we were creating this, we didn't realize a little bit that all our power lies in the data. Back then, five years ago, no blockchain oracle had price feeds for US stocks. We had 200 of them from day one. This was hardly used; Today it is actively used in Hyperliquid, Trade, XYZ, etc.
But in the beginning, we had access to a data product that no one was particularly interested in, but we were able to do it. And now, today, and this is a rather interesting point, 90% of PT's revenue comes from off-chain participants: centralized crypto exchanges, trading firms, fintech applications firms, fintech applications . But very few DeFi . But very few DeFi applications do, because centralized or off-chain industries know that the data they used to buy cost them a million, two or three million a year. Now with PT they can reduce their costs by 10-50 times.
When creating and delivering data, especially for large companies, you have few ways to achieve trust and a level of reliability where organizations are willing to spend a ton of money on your product and use it in mission-critical systems. We understood very early on and focused on trying to get data that no one else had before. So when five years ago Jump Trading, Jane Street, Susquehanna were giving us price feeds, and I was telling DeFi developers about it was telling DeFi developers about it , they were like, "Oh, you're just lying." They would n't have given this data. But when you anonymize it, aggregate it, and distribute it, all these organizations that were customers and spent millions a year buying data realized that they could turn the tables and become the ones producing the data and benefiting from it themselves.
Another great thing, I already mentioned, is that 90% of PT's revenue today is off-chain. We still remain very crypto- very crypto- native. We have a token, we have a DAO, etc. But pretty much all the data pretty much all the data we provide and create is accompanied by cryptographic confirmation. So whether you are a DeFi application or someone else who needs price data that is authenticated, verified, and used without trust, you can stream Pyth data to over 100 blockchain over 100 blockchain networks.
And one thing Pyth has always focused on, with his serious background in trading, background in trading, is apps and companies offering trading services. Three or four years ago, these were large on-chain these were large on-chain perpetuals. Industrial vertical. Today, Hyperliquid has virtually absorbed everything. But in general, if you trade cryptocurrency, on-chain or even off-chain through Binance or Coinbase, there is a 90% chance that the price channel behind the tool you are using is taking data from Trade XYZ, Coinbase, or Binance.
Almost certainly, if you look at the top 10 crypto exchanges that offer trading in commodities or stocks. They use Pyth price channels because, as I said, by integrating Pyth into one endpoint, you get forex, metals, and commodities quotes updated every 50 milliseconds, which is very convenient and profitable for these companies. As of today, we have about 700 or more applications, or at least companies, using Pyth data. We have secured, I mean, trillions, but I think there's more to come, in asset value. And that's why Pyth focused on trading more than other aspects of the industry, like lending, from the very beginning, because much more value is created around trading.
Let's say there are millions of trading volumes every minute on Hyperliquid , while maybe around 100 million are moved on Aave. That's why we focused on trading experience and trading companies from day one, because that's where most of the value is concentrated, and that's why we publish it. That's why Pyth was very successful in the beginning. We managed to attract very large trading firms whose names you usually either don't know, or they simply don't want to work with you. Over time, interestingly enough, TradFi's behavior has become similar to that of crypto participants "in the trenches."
If one person does something, everyone else starts repeating it. The hardest part was probably the first six months, getting 10–20 companies to provide us with their data. And then it all went pretty smoothly because they said, "Oh, my competitor is providing Pyth data, I must be missing something, I should try it." And since, for example, we had Cboe, which earns, I don't know, two or four billion from selling data, we can say that Pyth competes with them. Um, but overall, now we've managed to engage them, and they see Pith as a new way to monetize their data.
And at the peak of our development, we had about 135 publishers. Um, but overall you don't need that much. That's where we stopped. You just need the best and, uh, build it. Um, so so far I've mostly mentioned or talked about, uh, the best price channels that almost fit into Pith Pro.
So Pith Pro is your Spotify. It gets better every month : new and bigger data publishers, new and bigger price channels, more assets covered. For example, right now or this month we're launching, probably, the top 50 or 100, uh probably, the top 50 or 100, uh , stocks for most Asian countries. Er, so this is really the staple bread for Pith. We create our own data, have OIP, and redistribute it.
Most recently, we wanted to further improve the usability of the product, and we aim to ensure that your company relies on a single data provider, if possible. The point is, we can't create all the data in the world; Some data is very private or cannot be reproduced cannot be reproduced . That's why we introduced the marketplace. The Marketplace is a kind of platform for third-party distributors, but it uses the same API as all Pith products. So you can consume, say, the US 100 stock price channel from Pith, but you also need the second-level NASDAQ data.
So you can get all the order book data . So the idea was to further improve the product so that all you need is us need is us , and our latest focus is , and our latest focus is 24/7 markets. We brand this as Pith indices. But the whole idea is to use our knowledge and all the data that we create to connect traditional financial markets with on-chain markets, especially if you've seen and traded on Hyperliquid, where you now trade US indices, commodities—all of this is available 24/7. And how can you access or visualize all of this?
Pith Terminal. So, after that, if you have time, go to pith.com. There you will be able to access a site similar to TradingView where you can view all the data we have. And today, as we move beyond purely crypto beyond purely crypto oracles, it's a full-fledged self-service application.
It also allows me to work less because now you can just go in, create your account, pay, and I don't have to convince you to buy a $10,000 package . So, Pyth Pro was launched late last year and is run by Douro Labs—the second organization appointed by Pith DAO to run this off-chain off-chain data business. In total, since its launch, Douro has managed to add $1 million in annual recurring revenue every month. We are targeting 12 million by the end of the year, but there is a high probability that we will reach 20 million in the first 18 months. Mostly thanks to our new 24/7 indices, where we're probably repeating a strategy from traditional finance traditional finance : when you create something really great and new that people appreciate, you can sell it for a little more.
So the product and business are developing very well. This is paying off, and you could see some big names: Polymarket, Koshi, TradeXYZ—all of them use Pyth price streams to varying degrees for their markets and derivatives settlements. For 45 years, financial data has been fragmented, expensive, and stuck in the past stuck in the past —until now. Python Pro. One platform for stocks, cryptocurrencies, currencies and commodities.
All necessary asset classes. One platform, one commission, all markets. Python Pro. Better market data by design. We're trying to make market data a little more attractive a little more attractive than usual.
And don't worry, there will be two more videos, so you won't have to listen to me for too long. But, as I mentioned, we have crazy growth. It's been five or six years in the cryptosphere. It may seem like a long time, but we are very happy with where we are today are today . We’ve gone from exclusively cryptocurrency on-chain price feeds powering a few dozen applications on Solana to public companies like Coinbase relying on Pyth data to build beautiful and complex products.
I'll quickly mention a few names on our marketplace. Marketplace actually started with the US Department of Commerce a few years ago when the government wanted to get GDP data directly on the blockchain. Since then, we have grown and now have names like Tradeweb, Euronext, SGX, as well as EDI—the SGX, as well as EDI—the world's leading provider of corporate data in the US and around the world— providing their data through Pyth. I'll probably talk more in future videos , but right now we're aiming to ensure 24/7 data availability. This is where, in my opinion, crypto or DeFi and on-chain finance are pushing traditional finance, and that's great—providing 24/7 access to financial products.
We called them Pyth indices, so let's hope the future of finance is based on this. The sad part is that you will no longer have holidays or weekends. Oh, next, video. Um, but the indices, I think we have about 20 of them now. They cover commodities, individual US stocks, metals, currency pairs.
For example, yesterday, it seems, Kraken launched their perpetual silver futures with Pyth indices, and dYdX also had oil futures using our indices. It takes some time, but time and again we will see traditional asset markets become available 24/7, largely thanks to these great companies and Pyth price streams. Ahem. And yes, this is exactly what I mentioned earlier: why we want to create indexes—these are companies that you may not know about, or know about but have no idea how much they earn. S&P has over a billion in profits from selling indices.
MSCI is almost, I mean, almost a billion too. So hopefully Pyth will grow from 20 million to a billion soon. But we will see about that later. Overall, what started as a blockchain oracle 5 years ago... years ago...
has evolved, and as you can see from the commercials, the marketing team is having fun, but we are increasingly entering the world of traditional finance, fintech, etc. And, um, I don't know if you have time to scan the QR code, but hopefully, whatever deal you make today or next week, check out the documentation, but there's a good chance that there's Pyth data behind it . Thank you very much.
Automatic transcript — names and jargon may be misspelled.