Podcast Summary
The podcast features Edward Woodford, CEO of ZeroHash, discussing the company’s role in powering the backend for stablecoin payment companies, tokenized offerings, and other digital asset use cases. The conversation covers the regulatory landscape for digital assets, the emerging use cases for stablecoins and tokenized instruments, and how banks and broker dealers are engaging with the digital asset market.
Key Takeaways
ZeroHash’s Role in the Digital Asset Market
- Company Background: ZeroHash was founded in 2017 with the belief that crypto and cryptography are technologies with the potential to disrupt various markets, not just an asset class. The company’s mission is to simplify the technological and regulatory complexities for clients, enabling them to integrate digital assets into diverse platforms such as payments, brokerage, and remittance.
- Regulatory Compliance: ZeroHash’s regulatory compliance efforts are highlighted, including licensure in every U.S. state, which facilitates the adoption of digital asset technologies by reducing barriers for clients.
- Comparison with Early Internet: Edward draws a parallel between the early days of the internet and the cryptocurrency industry, noting that startups in the early internet era had to build many components themselves, similar to the current state of the crypto industry.
Emerging Use Cases for Stablecoins and Tokenized Instruments
- Stablecoins as On-Ramps and Off-Ramps: Stablecoins are highlighted as a key area of interest, with their use as on-ramps and off-ramps for entities like Franklin Templeton and Securitize, which is working on a tokenized BlackRock money market fund.
- Potential for B2C Payouts: The potential for B2C payouts is discussed, with the example of Stripe’s payout product enabling Uber drivers in Argentina to hold USDC or USDT through ZeroHash.
- Brokerage Industry: The speaker touches on the brokerage industry, mentioning the recent launch of a “fund with Stables” product that allows instant funding of brokerage or CFD accounts outside the U.S., contrasting this with the traditional multi-day clearing process for cash deposits.
Regulatory Landscape for Digital Assets
- Increasing Regulatory Complexity: The speaker notes the increasing regulatory complexity in the U.S., with recent developments such as the vetoed sub one two one by President Biden, new consumer complaint procedures in New York, and the European travel rule, all contributing to the growing overhead for integrating financial technology.
- Regulation by Implication: They introduce the concept of “regulation by implication,” which they describe as a regulatory approach that indirectly increases the burden on businesses by implying that certain activities will require significant time and resources to comply with.
- Global Regulatory Footprint: The speaker discusses their company’s extensive global regulatory footprint, highlighting registrations and approvals in various countries, including Canada, the US, Brazil, Argentina, the UK, New Zealand, Bermuda, and Australia.
Sentiment Analysis
- Bullish: The overall sentiment of the podcast is bullish, with the speaker expressing optimism about the potential of stablecoins and tokenized instruments to disrupt various markets. The speaker also highlights the significant work ZeroHash is doing in the industry, suggesting a positive outlook for the company.
- Neutral: While the speaker acknowledges the increasing regulatory complexity in the U.S. and internationally, he does not express a negative sentiment towards these developments. Instead, he emphasizes the efforts of ZeroHash to navigate these complexities and reduce barriers for clients.
