Well, financial control is increasingly driven by digital systems and also online networks.
Now the Genius Act marks a significant step forward in this transformation, and with this act, stable points will be fully backed by banks, meaning you can redeem them 1 to 1 for US dollars, but estimates do call for up to $1.75 trillion worth of new digital dollars.
Dollars to enter circulation over the next few years and that could have a huge impact on the global economy and how countries trade with each other.
Bank issue dollars stablecoins are also divisible and programmable, combining global liquidity with the security and anonymity of blockchain.
Joining me here at the New York Stock Exchange is Anan Lee, who is CEO and founder of.
Of Codex.
Now Codex is a layer to blockchain network or stablecoins.
Great to have you here.
Thank you so much for joining me.
Thanks for having me, Remy.
It's great to see you.
Well, we are back from Labor Day, and that means Congress has returned to Capitol Hill.
But when we take a step back and look at the regulatory shifts we have seen so far this year in the US, tell me what this means for stablecoins.
Yeah, that's a great question, Renee.
I think what we're seeing on the ground in Southeast Asia and other places is that the regulation coming out of the US is such a credentializing moment for stable points.
We're seeing as a catalyst for more growth across the region.
I think you're seeing regulators in other countries attempt to catch up.
You see an effort and thinking out of China and other countries modeling themselves after the Genius Act and so I think this is a sign of American leadership in this area.
Yeah, and here at the New York Stock Exchange earlier this summer, we saw Circle go public and there's a lot of focus on stablecoin here in the US but you mentioned China, so give us an understanding of some of the dynamics, especially when it comes to national security.
Um, you know, I think stablecoins so far have been a dollar phenomenon, and they are sort of a structural bid for treasury in a way that really advances American interests.
I think if you are another country, a different geopolitical entity, I think you are analyzing this and thinking about this, well, how do we also secure a foothold in this new paradigm for payments and financial services?
And so I think this is going to be a very interesting time in the next couple of decades to see all this play out.
And with the launch of Circle as a public company here in the US at the New York Stock Exchange, we also heard from financial services institutions as well as some familiar household names in terms of retailers announced potential plans for launching stablecoins, but how do you think this will actually play out when we're talking about retail?
I think that there's a lot of churn right now in the markets, right?
People are thinking about either launching a chain or launching a stable.
I think the long term equilibrium here is probably not 5 or 12 different stablecoin chains.
I think the long term equilibrium. is probably a few chains and I think many stablecoins.
It makes sense for these companies to launch stablecoins because they can really drive economics that previously were not there for these companies and you know that's also some stuff that we're involved with and working on as well.
Hanan, you're here at the New York Stock Exchange.
So of course when we're talking about investments whether we're talking institutional or retail, break down stablecoin investments and what you're seeing.
Yeah, I think the market is hungry for stablecoin exposure, and I think that's reflected in these, you know, very high multiples when it comes to Circle and other Scoin companies.
I think the vast majority of exposure today is still in the private markets, and so that's the purview of VCs and sophisticated investors.
I think it's important that Instruments be surfaced that allow folks to ride the upside of stable coins in a responsible as well as thoughtful way.
Yeah, and Haan, when we're here in the US and we're talking about concepts such as inflation and inflation rising, if we compare it to other countries, say Argentina or Turkey, the inflation is minimal in comparison.
And when we're talking about stable coins as well here in the US, the typical American consumer may not be as familiar with this concept.
So give us your vision when it comes to use cases.
Yeah, so let's give the backstory here.
5 years ago I found myself in a hacker house in Italic Thein, the founder of Ethereum, so I quit my job in Midtown and I moved over to help scale Ethereum with him.
And what I noticed was that there was a gap in the market for chains focused on stablecoins.
And so that's what Codex is.
Codex is a blockchain focused exclusively on stablecoins, and so you know it's been gratifying to see others sort of catch on to this and join us in the fray.
Um, I think what we see is that stablecoins are an excellent way to enable people to preserve the fruits of their labor and transmit it across space and time.
I think you see the start with the edge cases, these cases of crazy hyperinflation, absurd governments, right, that's where it starts, and I think that's not where it ends.
I think we see a sort of platform shift from these traditional rails on the stable point rails and the sort of broad appeal of these systems is kind of what we're trying to drive.
You mentioned it there.
I do want to get your take on what we're seeing in terms of rotation right now.
I think we're broadly seeing rotation out of Bitcoin and into Ethereum, and I think that makes a lot of sense.
I think Ethereum is commonly known as the choice for most Wall Street folks, and that's because of its neutrality and its robustness.
And I think you know the stablecoin chain built on Ethereum will be the one that wins.
OK, Hana, great having you here at the Exchange.
Thank you so much for joining me today.
Thank you.
