OK. Hello everyone, I'm Mike Cahill. I am the CEO of Dora Labs. We are building the Pith network. Let's start.
I have my clicker here. OK. OK. So, I'm going to talk to you about the Pit network, the price of everything, and how we make it accessible to everyone it accessible to everyone , and why does the market need a new pricing system? So, there are a few things I want to address.
want to address. First, what problem was Pith supposed to solve, and why is the infrastructure around market prices broken? And then we'll talk a little bit about where Pith is today, how big we've become, and a little bit about who's building the network and where the data comes from. And finally, we'll look at some of the product verticals and talk a little bit about the new one we're launching today. So, a few years ago, about five years ago, I was working at Jump Trading with my co-founders, Ian and Kieran, and we were diving really deep into market infrastructure, specifically because there was a huge amount of activity happening in blockchain , and we were trying to figure out: how do we get to a global, harmonized marketplace harmonized marketplace where you could trade assets around the world off- blockchain without any distribution issues?
And the place we found the biggest bottleneck is financial market data. So we went down this rabbit hole. The financial market data industry is very large now. That's about $50 billion in revenue per year revenue per year . And it is very isolated and fragmented.
It's a bit of a mess. If you asked anyone in the financial industry about market data market data , they would tell you something about Bloomberg. And Bloomberg charges $30,000 per seat. And this is a kind of basic cable TV package. If you want real data, you need to actually pay for all those extra premium channels.
So, CME, real time, NASDAQ, second level data, ICE, etc. If you travel the world, you will find yourself with hundreds of data providers and connections to all of them, and you will have to go through an audit with each of them. Sometimes it's difficult. They are located in jurisdictions where they are difficult to access. So it's really a mess.
But the reason it didn't turn out to be a mess before is because it worked pretty well in existing markets. But that doesn't work if you get into a cleared blockchain-based market. Therefore, blockchains allow you to create a global market without geographical restrictions. They are programmable by nature, which means that if you are going to transfer information to the blockchain, you need to do so in a way that preserves the trust of the network. So, cryptographic evidence goes into the blockchain so you can use the network because it's programmable.
And finally, it's 247, right? So, there is no operational staff or operating company around blockchains operating company around blockchains ; these are networks of validators, 247 of them. So that's what Pit was aiming to create, and it's a very simple market model, right? So, on one hand, you have data publishers; on the other hand, you have consumers. And then, in the middle, Pith aggregates the information, and during this aggregation process, it is able to maintain trust and publish proof to any of the blockchains.
Now, to create a publisher network that didn't look like the Bloomberg model, we had to rethink it from first principles. If we were to buy data from NASDAQ or CME, we would be limited by the same restrictions they are limited by today. So we thought about it from first principles and came up with a new model. The big discovery for us was that there are many large trading firms that have access to extremely high-quality data. They've never monetized them before .
It's a byproduct of their business. So think about Jump Tradings think about Jump Tradings , Jane Streets, Susca Hannah. So the first step was to reach out to them and ask them to provide data to the network. Of course, none of them will individually have as much data as the entire exchange. So we can bring them all together, anonymize them, make them accessible.
This was a model, and many people like to abbreviate Pith as oracle. It's true that when we create a cryptographic proof that can now be used in the blockchain, and that's how I imagine an oracle, but it's actually much bigger. This is infrastructure, and this is a whole new level of pricing, price creation that has never been done before. This is the first time someone has created an original source of prices. So the scale of this has now become quite impressive.
We have over a hundred institutions that provide their data. The proofs are configured to be delivered to over 100 different blockchains. Every asset class is covered. So, cryptocurrency, data, stocks, global stocks, currency, commodities, futures–you name it . And together, this has powered over 60% of has powered over 60% of perpetual options markets, using data to generate funding.
This amounts to $3 trillion in transaction volume. Over 700 businesses have been created, and we count over 3,000 different symbols. Now let's look a little bit at the publishing side of the network, because if you want to build a network that has every asset, you need to be very careful about how you're going to source them. So we partner with the best in each of these categories. In the cryptocurrency category, these are Binance, OKEx, Vybit, all on-chain OKEx, Vybit, all on-chain indices, winter mutes, flow-desky.
So it's very easy to go out and find a new product. For example, for US stocks, these are benefits, jumps, global markets SIBO, etc. This gives us the unique opportunity to poll our network of publishers on any asset someone wants to trade, whether it's Japanese stocks, Indian stocks, or base metals. Now we'll delve a little deeper into the products. So, Pith has three product verticals.
The first is most similar to Spotify. If we think of the original model I described with Bloomberg as basic cable as basic cable , and you buy premium cable , and you buy premium cable subscriptions through it, our vision is that Pith could become the Spotify for financial market data. It's a subscription that gets better every month, with an ever- growing catalog growing catalog . It's called Pith Pro. This is a key product for Pith that allows the creation of market data, which gives developers a license to use this data both on and off the blockchain.
Then we have a data marketplace, which is a bit more like a distributor like databrick or Bloomberg, except for the fact that we provide cryptographic proof so that the distributor can use their data to sell to an audience that actually needs that data on the blockchain. And the latter applies to 247 markets. That's what we'll talk about today. It's about creating indices for markets that historically have never been 247 so that you can get trading that actually happens on a 247 basis. Now, at the heart of all of this is the Pith terminal, so you can access all of these products on one self-service website.
The PIT terminal allows you to browse all products, view some benchmarks, perform analysis, and then of course manage your subscription. Earlier this year, Pith Pro started selling these premium services, premium products, on a subscription basis. We are adding a million dollars in ARR every month. This year we are scaling the baseline to $12 million, but we expect that with some of the products that are rolling out, we will that are rolling out, we will likely reach around $20 million in ARR by the end of this year. But the most interesting thing is that even though we were created to provide data to blockchain users, we believe that we are the only place where you can get a lot of data for blockchain users.
We find verticals where there is no interest in our on-chain evidence. Everything revolves around data. So a great example of this is Pith, which provides financial markets event markets for California. None of them require on-chain verification. They just need a data package that is extremely scalable and will allow them to distribute the data to their end clients for trading so they know exactly what the resolution market is going to be.
For 45 years, financial data has been fragmented, expensive, and stuck in the past. Until now. Pit Pro. One platform for stocks, cryptocurrencies, currencies, commodities, every asset class you need. One platform, one commission, every market.
PIT Pro, the best market data by design. Good. Um, just to remind you of the scale we have. So, today, over 700 businesses use PIP data. There are 138 institutions that provide their data.
This includes some of the biggest names in the financial markets. This can be proven on over 100 blockchains and already covers 60% of the already covers 60% of the federal on-chain market. This scale has already reached enormous proportions. As I mentioned, a marketplace is a way to distribute data from a third party using Pith Rails and publish it to the blockchain. All of this happened thanks to the cooperation we had with the US Department of Commerce last year.
Their intention was to publish GDP on different blockchains. So we worked with them and we did it. This was the first time we published data that was not PIT data. This was clearly US government data. And then we started getting other input and realized that there was actually a product here.
So if an exchange or a large intellectual property owner has a dataset that they want to make available to a blockchain user, we built this product for them and just launched it with seven institutional trading platforms or publishers on a trading platform. This includes Euronext, SGX, OTC Markets, EDI for all corporate action data and this will continue to grow and we expect this to be a fairly large area of growth for us. And finally, we'll talk a little bit about our new 247 markets. The good news is that news is that they will change the state of finances. The bad news is news is that it will probably eat up your weekend.
So 247 markets are built using Pith's own data feeds, but harmonize together seamlessly when the data when the markets are trading off- net based on 245 or based on the fifth hour of the market, and also whatever was traded on- net if it's stock X or if it's trading XYZ, and Pith now creates these indices with weights that make them seamless to deploy. A few weeks ago, we experimented with rolling out cork oil, and the demand was insatiable. So we've been able to expand that now to many other areas, US stocks, metals, futures and currency. So now we'll show you another little video. And finally, to ruin your vacation even more.
OK. OK. So, we're launching them this week. Hmm, tomorrow it will be officially announced, um, the first users will be Coinbase, Kraken, DYDX, Market Vector. This will be 247 unique Pith indexes.
And look, Pith was designed to modernize markets, and we believe that doing this 24 hours a day will become the norm. And indexes are just one way to achieve this. Good. Thank you very much everyone for your time.
Automatic transcript — names and jargon may be misspelled.