“It’s one thing to think about Bitcoin as the asset, but now we can start thinking of it as settlement rails.” – 01:20
Remy Blaire engages in a thought-provoking discussion with two prominent figures in the cryptocurrency space: Matt Mudano, CEO of Arch Network, and Josh Gordon, CEO of HoneyB. The conversation centers around the evolving role of Bitcoin as it transitions from being viewed primarily as digital gold to becoming a foundational layer for a new financial system.
Remy opens the segment by highlighting the insights of investors like Tom Lee and Matt Hogan, who have pointed out the DeFi capabilities of Ethereum and Solana, particularly in areas such as tokenization and stablecoins. She notes that Bitcoin is now expanding into these domains, introducing HoneyB as the first Bitcoin-native platform designed for compliant tokenization of traditional real-world assets, developed in partnership with Arch Network.
The discussion begins with Matt Mudano explaining how Bitcoin, initially created to address the double spending problem, is now evolving into a financial infrastructure that supports real economic activity. He emphasizes that Arch Network’s role is to enhance Bitcoin’s functionality by creating a programmable layer that operates directly on the Bitcoin network, allowing it to serve as a settlement layer.
Josh Gordon then shares his vision for HoneyB, detailing the challenges faced by investors seeking returns on their Bitcoin holdings. He explains that the current methods of generating yield, which have relied on basis trade strategies and token emissions, are neither scalable nor sustainable. Josh outlines his efforts to integrate private credit and fixed income markets with institutional Bitcoin, aiming to create a more robust and sustainable yield environment.
The conversation shifts to the historical difficulties of programmability on Bitcoin. Matt elaborates on how Bitcoin’s design has prioritized security and simplicity, which has limited its programmability compared to other blockchain platforms. However, he points out that recent upgrades to Bitcoin’s core architecture have enabled the storage of arbitrary data, paving the way for innovations like Arch Network that can enhance Bitcoin’s capabilities without compromising its security.
Josh further explains how institutions can now leverage their Bitcoin holdings to generate yield without losing custody or exposing themselves to the risks associated with DeFi smart contracts. He describes how HoneyB allows institutions to maintain their Bitcoin with trusted custody providers while utilizing the Arch ecosystem to create derivatives and access stablecoin yields.