Institutional Bitcoin, the transformation of Bitcoin from a speculative retail asset into a standardized, regulated, and that grade financial instrument is growing on the Canton network.
While BitSafe has launched Canton Bitcoin, which is the first one to one-bed rapp Bitcoin on the Canton network, and it is designed to be institutional grade, which means it adheres to specific compliance as well as custody standards that traditional.
Tokens often lack and apart from Bitcoin maximalism, investing in Bitcoin is no longer just about owning the coin, and it is about the infra as well as legal wrappers that allowed the world's largest pools of capital to hold and use it.
Well joining me to weigh in this morning is Aki Balogh, the CEO of BitSafe.
Aki, great to have you on.
Welcome back.
So we have been hearing about Canton Network and you launched CBTC.
So tell us why.
So we build Rap Bitcoin solutions on Ripple and Ethereum and other chains.
Canton, which is perfectly positioned, it really bridges the gap between TradF, or traditional finance, and DeFi, but it's neither TradFi nor DeFi.
It's something that was built from the ground up for institutional use.
And speaking of which, you and I are here on the floor of the New York Stock Exchange, and we're continuing to see a lot of developments when it comes to.
Institutional adoption in the space.
So walk us through why the Canton networks specifically.
So traditionally, traditional finance happens within the context of one bank or one custodian.
Canton brings interoperability.
So when the systems can talk to each other, and those can be banks or other software companies like ours, when you have interoperability, well of course you have faster settlement.
And so on, but you also have new product experiences that can be built, so you can have tokenized royalties for Spotify streams or you can have collateral that pays you while you use it.
So it's really just an open world of building new financial products and building on what you just said, obviously I do want to hear about your outlook when it comes to innovations as well as projects here, but.
The fact that we're hearing about new tokenized products on the network.
What are you specifically doing?
We're focused on CBTC is the first decentralized asset, so it has a decentralized set of holders.
We're not the custodian and we're not the issuer behind it.
We make a technology that others use and we specifically run a node network.
Now what this forms is what we call a multi.
And I think multi-stake is the least known and probably the most important aspect of crypto.
It's the ability for multiple parties to hold an asset, and so that makes it programmable.
So you can put any kind of asset into various types of pools.
So it's like a really important building block that you can build on.
We make open source software that lets anyone create decentralized parties or multi-stake parties on.
And I do want to get your take on privacy as well because we're talking about a regulated industry and space.
So tell us about privacy.
Kent was built from the ground up for privacy.
Privacy is essential for regulated entities.
You can't just have like someone's wallet, you know.
Just show all the balances, all the transfers that will never work.
So Canton was built, and we've built over many years.
It's not a flash in a pan thing, but it was designed in order to let everything from large banks, hedge funds, asset managers, just various regulated entities participate.
We are counting down to the opening bell here at the New York Stock Exchange, and we are set for one of the biggest IPOs so far this year.
So there's a lot of noise and activity here, but I do want to get your take on what we've been seeing in terms of Bitcoin this year because there's been a lot of volatility and you and I have talked about this before.
So where are we right now in the cycle?
It's Really hard for me to say.
It's been just kind of up and I'm biased.
I've built the whole company around Bitcoin technologies.
I think what people don't understand about Bitcoin is the main, what gives it its value.
Yes, it's a meme and it's a network effect, but the security of Bitcoin, the secure design means that it's less likely or more difficult to hack or for someone to.
Take your Bitcoin, and that's the core value.
So I think most people I talk to don't understand that the primary value of Bitcoin is security and that matters on a government level, on a corporate level as well as a retail level.
So I think there's just more awareness around how Bitcoin works and why it's such a special token, I think over the coming years we'll see more and more interesting designs with.
And as you mentioned, there are a lot of moving parts here, so I do want to finally ask you this question before you go.
So how do you think all of these features that you're talking about will actually rewire traditional capital markets?
It's kind of like moving from traditional text SMS messaging to WhatsApp and Facebook Messenger, the ability to connect in that case communication to various platforms where you have various data.
You can choose to share or not share.
It just sparked a revolution and you can now you have businesses where you can do customer support in WhatsApp.
It's just really connecting the world better and this, I think, will do it on a financial level.
So we're going to see a lot of interesting products and services over the years to come.
And finally, one last question for you.
What about tokenization?
What do you expect to see in the near term as well as long term?
I think it's a broad broad area.
I think there's More things that can be tokenized than people think.
So some of the innovative like I mention Spotify, royalty streams or any kind of streaming music royalty, that's cool.
Who would think of that?
So I think there's going to be a lot more creativity when you get builders able to build in an open source environment working with large, it was great to have you on the show.
Thank you so much for joining us today and as always, thank you so much for sharing all of your insights.
Always a pleasure.
Thank you.
