00:00 Speaker A
Talk to me about this deal from Coinbase and and how you rate it. Do you think that this was the right move?
00:08 Speaker B
Absolutely. And and thank you, Madison. Great to be great to be here. Uh, I think part of Coinbase’s mission is really to scale its liquidity. At the end of the day, it comes down to liquidity, um, and because that’s going to be able to to draw in more capital and and have the lower lower fees and and certainly access points. And derbit is is clearly a pathway towards that competitive advantage. Uh, first, it gives them more of a and an international footprint, that’s something that Coinbase has been working hard on on delivering. And then additionally it enhances their derivatives, um, capabilities for sure. On top of 800, 800 billion of of futures volume, they now add a potential of, um, roughly a trillion dollars in options volume on top of that. So it’s really helped them on the institutional side.
02:25 Speaker A
And and what does it signal to you more broadly about M&A specifically within digital currencies?
02:35 Speaker B
Yeah, it’s been interesting. There’s been a lot of activity and we we hear of things uh, constantly. Um, I think we’re entering a new era for the crypto industry. Um, it’ll be really interesting to see if traditional finance and crypto native firms come together. Uh, and also just from the crypto native side, how these companies scale. Uh, I think there’ll be a lot of competition, which I think will be good for the sector, but certainly a lot of opportunities. We do believe, and we’ve written extensively on this, that there will be a lot more public companies, uh, in uh, crypto native public companies to come out. And and in our dealings and speaking with a lot of them, is they don’t necessarily need the money. What they really do is crave legitimacy. And they believe that Coinbase has had a bit of an unfair advantage, being a public company, having publicly disclosed financials and CEO and CFO attestation. So, uh, I think a lot of crypto native firms want to close that competitive gap versus Coinbase.
