William Quigley, the Co-Founder of WAX & Tether, joins Remy Blaire to discuss the dynamic landscape of the crypto industry, focusing on recent developments in exchanges, stablecoins, and digital asset treasuries.
The conversation begins with the recent rebranding of Hong Kong’s Prestige Wealth to Aurelian Treasury, which has launched as a Tether gold-backed treasury, successfully raising $150 million in financing. Quigley shares his perspective on this development, describing it as a natural progression in the tokenization of assets. He explains that the evolution from tokenizing fiat currencies to commodities like gold is a logical step, given the efficiency of blockchain technology in facilitating cross-border transactions and the persistent demand for globally traded assets.
Remy then shifts the discussion to the profitability of crypto exchanges. Quigley asserts that crypto exchanges are among the most profitable businesses in the crypto space, second only to stablecoins and decentralized finance (DeFi). He elaborates on the simplicity and scalability of exchanges, which allow them to generate billions in free cash flow. Quigley also highlights the role of exchanges in contributing to market volatility, noting that many engage in proprietary trading, making them a powerful force in the crypto ecosystem.
The segment takes a turn as they discuss the struggles faced by digital asset treasuries, particularly Metaplanet, which has fallen below its market net asset value. Quigley expresses skepticism towards digital asset treasury companies (DApps), arguing that investing in these intermediaries adds unnecessary risk to an already volatile asset class. He advocates for direct investment in cryptocurrencies rather than through companies that hold crypto on behalf of investors, suggesting that this approach mitigates additional uncertainties.