Off the Rails: How Smart Contracts are Galvanizing De-Fi

[Music] all right welcome everyone it is a great honor to be here uh I want to start off by giving a big compliment to adg you know uh being part of this ecosystem now for the last I would say one and a half years it's really amazing to watch this transformation of AD G happening right in front of us right like we can see it with the event which is even better bigger and more professional this year uh so I think next year we'll be even more exciting to watch it on fold um I would also like to reflect a little bit on what's been happening on the blockchain space right so we've been operating in blockchain I've personally been in blockchain for the last 15 years now all right and so we've really seen a huge evolution of the of the space and I think this year is really the year where we can say that things have gotten real right Black Rock entering building up their own tokenized fund ETFs coming up and launching right really raising hundreds of millions of dollars billions and u a very much forward-looking and uh positive uh Administration in the United States and everything is really starting to bloom right even though AI is the latest hype and the latest Trend I think that this year is really where where we've seen this inflection point in blockchain right stable coins are really taking off circle is really taking Great lead there exchanges and the next part is obviously tokenization right so the really exciting part about blockchain is that we've used the last decade to build certain building blocks right starting out with defi starting out with the base blockchain which enables this frictionless exchange of assets but then building applications on top that really help us create new financial markets right tokenization um is at the centerpiece of that but what's really exciting of that uh as part of that is really how do then actually utilize these tokenized assets so what started out sort of like as a House of carts if you will right because defi was really a a hyped up uh market and uh it it saw itself also crumble a little bit over the last few years is not really starting to bloom again because now tokenized assets real assets are starting to be injected into these protocols that we've built and are helping us to build a new Financial ecosystem and so what we have focused on with the with the pioneering work of AD g a couple of Partners is to really start building up a tokenization ecosystem here in adjm as well right and what's really amazing about this is that we can bring safe stable yield bearing assets on chain right we can use those assets and Empower investors to utilize those assets within the entire blockchain ecosystem and then with that create entire new use cases so we've helped to set up the first tokenized treasury bills fund and right now we're actually in the process of setting up a few more funds with some part Partners to really build up an entire tokenization ecosystem we're still at the start of tokenization right so if we look at the treasury bill Market uh the tokenized treasury bill market today is around $ three3 and a half billion dollars but but this is really just a start we're talking about trillions of dollars of assets that are going to be tokenized and are coming onchain because it makes a lot of sense right instead of you tracking your funds uh ownership in in a centralized Excel sheet not being able to know what the net asset value is at the end of the day because like a huge spreadsheet you can now do things in a tokenized way and the key Innovation here is that instead of having having a share certificate you will have a token and this token has legal represents legal ownership in the fund or in in a certain asset right could also be tradeable invoices uh bonds or other equities right now once we have this token we can then start doing really amazing things right and so I think this is really what I want to encourage all of you to really think further because tokenization it's just a start right what we really should focus on is building up an entire ecosystem because just tokenizing a fund is kind of boring if you think about it right you can't really do more than you can do today with these assets once they're just because they're tokenized what you need to focus on is building up an entire ecosystem around that and so what we are focused on is really solving the tokenization piece right this is where it's really critical to work with Forward Thinking uh Regulators like adgm M that are willing to take the first step right so we've actually set up the first directly tokenized fun where each token uh represents legal ownership into the fund itself and so this is really the the first start in all of this right so then once you start bringing these tokenized assets on chain you're going to start thinking about what can you actually do with those tokenized assets right and instead of instead of building up this entire uh uh uh blockchain ecosystem with volatile crypto assets it makes a lot more sense to build it up to have a strong foundation with these tokenized assets right and so what we are building at the moment is really an entire ecosystem where you can actually utilize these tokenized assets right so you have a yield bearing asset you can actually uh use it as collateral within a stable coin right you can use it within a exchange you can trade it frictionlessly 24/7 you can uh take out a collateralized loan right you can loan against these Assets in a 24/7 way and much cheaper than the traditional system right and so I think this is really the premise and this is the promise of this tokenized future where we are building up an entire new Financial ecosystem starting out with tokenization but in actually leveraging these blockchain rails so that their assets can be exchanged in a frictionless way and so that we can really enable these new use cases that are not possible today right so I encourage you you um all to check out the the website um where we've actually built up uh the entire infrastructure connecting with the fund administrator connecting with the fund manager to really make it seamless to actually deploy Capital into these uh uh tokenized assets and then to start uh uh managing and leveraging them and so over the next uh couple of months we're going to really focus on expanding accessibility to this infrastructure right making sure that we can work with other uh fund managers and with other partners to really make it globally accessible I think as a as a closing remark I want to talk a little bit about the permissionless blockchains right um it's the same as was happening with the cloud where initially all the large financial institutions sort of against the cloud right because they were saying hey it's not private it's not secure we want to really keep like control over our data we want to keep control over our infrastructure and look at where the cloud is today right everybody uses some form of Cloud either it's AWS Azure Google cloud or others and I think the same is going to or is starting to happen with permissionless public ledgers right because initially that is the talk was all about how permissioned blockchains are the only way to build up this financial ecosystem but many of those permission blockchains um have actually failed over the last few years right and I think with the with the great uh introduction of the bill fund which was introduced by Black Rock on ethereum blockchain we sort of seen a shift right where the shift is really like not no longer about permissioned private networks but really about public networks so that any anybody can connect to them where it's really a public goods infrastructure where we can then now build this this tokenized future and this tokenized ecosystem so we as a company we always really focus on building up this based infrastructure with Iota and also connecting with other blockchains like ethereum like salana and so on to really make sure that this tokenized future is not built on on private permissioned rails but really on public percious one so that anybody can actually benefit um from this tokenization and so I really encourage all of you who are actually part of a traditional financial institution to really think more about how permissionless uh blockchains can really be part of your strategy uh building up these Financial ecosystems uh thank you [Applause] [Music]