Building Stablecoin Products for Mass Adoption

Transcript

Hello everybody. My name is Jordan Jefferson. I'm the founder and CEO of MyDoge, the number one Dogecoin wallet, and DojoSwap, the upcoming app layer for Dogecoin. Basically, EVM on Doge. And joined here by Justin from World Liberty. I'll let you introduce yourself. Yeah, sure. Hey everybody, Justin, head of business development for World Liberty Financial. We are building a suite of different DeFi products. The one that you guys would probably be most familiar with is USD 1, which is the fastest growing stablecoin in the world. About 5 billion issued since we launched less than a year ago.

Awesome. So, building stablecoins for mass adoption. I'm going to start by just maybe getting you to tell us a bit about the state of the stablecoin market. We are at over 320 billion dollars stablecoins stablecoin supply, more than half of which is on Ethereum. Settlements last year, 33 trillion dollars settled in stablecoins, more than double the Visa network. And stablecoin growth enormous despite, you know, total crypto market cap going down. What are you seeing? What's the state of the industry on the stablecoin side? Yeah, I think the important thing when we look at something like like the stablecoin issuance landscape as a whole, and we talk about, you know, there's 33 trillion dollars of volume being processed, record numbers. The

majority of stablecoins issued today are still being used for trading. And when we say like broader crypto market is down, that is true. Stablecoins at an all-time high, RWAs at an all-time high, payments that are being done in stablecoins is at an all-time high. I'm not sure that we're seeing that reflected in some of the prices of assets that people are more familiar with holding on chain, but in terms of just pure on-chain activity, that as a whole is at an all-time high. And stablecoins are fueling a lot of that, whether it's like RWA issuances and the growth that we're seeing there. The majority of that right now is either really stablecoins, tokenized gold, or tokenized T-bills or money markets, often which are backing stablecoins

themselves. So, the stablecoin growth itself ends up fueling a lot of the other sectors that people are very passionate about and that I've heard even others speak about today, and I'm sure more will speak about tomorrow. There is kind of a lot There's a lot of room to grow, I feel like, because we don't feel like trading is the only use case that applies to crypto. And if we believe that there will be a world where stablecoin payments are the primary form of payment, if all payments are happening on on chain, which is what we're building towards. If there will be agent commerce, which is powered by on-chain stablecoin payments, because that will be easier to interact with for agents. All of that is stuff that we believe that we believe in at World

Liberty, and that we are building towards actively. Very cool. And I know you guys have done a lot of kind of interesting interesting deals and initiatives to become the fastest growing stablecoin. I mean, 5 billion dollars in under a year, right? Um Give us some examples, like where did you see a lot of that issuance? How do you approach these deals? How did you approach these new ecosystems? Yeah, for sure. So, I think basically to the first question, I've spoken a little bit about where I think we're going and what I think will power sort of the next 300 billion dollars of stablecoin issuance, which I do think is a lot of payments, RWAs, etc. But again, what's powered us to get here has been primarily trading. That's true for USD 1

as well. So, when you look at other stablecoins that are around the 5 bill mark, maybe the 3 to 5 bill mark, most of them are doing 10 to 100 mil in daily trading volume, and that's due to prioritization of things like, you know, making sure that you have the best return in lending markets, things like that. At World Liberty, we took kind of exactly the opposite approach and we're like, okay, most of the activity is trading. Let's go into where trading happens, which is today primarily centralized exchanges. So, USD 1, despite having less than 5 bill issued right now, about 4 and 1/2 bill, is doing 2 to 3 bill in daily trading volume. That is about 40% of what USDC does, despite being about 7 to 8% of the total amount issued. So,

that's a lot of activity on major exchanges like Binance. We have USD 1 pairs listed on every major exchange, whether that's in the US, in in Europe, in the UAE, and APAC, in Korea, etc. We have USD 1 issued everywhere. We've run campaigns to boost trading volume across those venues, and that's where we're seeing a lot of adoption today. Very cool. So, I want to talk a bit about it from my perspective, which is kind of the Dogecoin Dogecoin community perspective. I mean, I think it's cool, you know, institutions using stablecoins, but we're trying to see, okay, how can bringing stablecoins to the people, to the Dogecoin community, you know, actually benefit them. And, you know, for those who don't know, the Doge community, because Dogecoin is, you

know, like Bitcoin, no smart contracts, which is kind of the whole reason we're bringing EVM to Doge, a lot of the Doge community are kind of crypto normies. Like, they hold Doge, they use Doge, but they maybe have never interacted with a smart contract. They maybe have never used a stablecoin, because they're not, you know, multi-chain. They're just kind of Doge people. And so, we're really excited about, okay, how can stablecoins on Doge kind of onboard these 10, 20 million Doge holders into this payments world. When you're looking at a new ecosystem, for instance, I know you guys, you know, brought USD 1 to Solana, and Solana's seen huge stablecoin growth this year. Obviously, a lot less stablecoins than Ethereum. But, when you look at something like that, where you have this existing user base, they're already kind of, you know, have

their feet wet in crypto, but weren't transacting with stablecoins, how do you think we, you know, get those consumers? And I can tell you my opinion, but I'm going to ask you kind of first, like, how do you get the consumer outside of trading? You know what I mean? Outside of trading. Yeah, for sure. I mean, I think we have USD 1 launched on just under 10 chains today. So, we obviously have a centralized amount of USD 1 on chains like Ethereum, Solana, sort of the bigger chains that you would expect to see USD 1 on, but we have seen a lot of growth on other chains, on newer chains that have launched. And there is kind of the point that you made where there are people that are already familiar with interacting on chain, who we don't necessarily have to go through the same level of education to

get them to use a wider variety of products. And I think that's true for what you're building. I think that's true for a lot of people that are basically just trying to access liquidity on assets that they are probably very long-term holders of. And obviously, stablecoins provide a way and other infrastructure around stablecoins provide a way for people to get access against that liquidity. And that is it's a primary focus of ours, like, be everywhere where there is activity that is happening. I think that makes sense. I mean, I look at, okay, what can we do with stablecoins for Doge users? I think there's there's one, you know, very exciting kind of broader opportunity which the Dogecoin community is definitely buying into, which is that right now, Dogecoin one of the, you know, most traded assets

across every exchange in every single country, all of that trading is on CEXes. Every single, you know, Doge traded is on centralized exchanges. There's virtually no DeFi on Doge. You look at, you know, another coin, Ethereum, Solana, whatever, a lot of that trading is happening in DeFi. What does that mean? It means, you know, people can LP and capture value. It means builders can build a product and capture value. Um we just want to bring value back to the people in the Dogecoin community. So, simply having a DeFi pair of Doge and, for instance, USD 1, um that's already a game-changer. That's a, you know, complete revolution for the Dogecoin world, which is really not on chain. Um We have a wallet. We have, you know, half a million, almost a million users

using this Dogecoin wallet. We want to do fun stuff for them. What is fun? What is cool? Where is like real opportunity? One, yes, okay, now you can LP Doge. Now there's DeFi in trading. Um I think helping them, you know, learn that you can actually not sell your Doge, but borrow against it. Something I think, you know, crypto OGs understand, whether it's for tax reasons, whether it's for, you know, not having to sell, that you can actually borrow against your asset and maybe, you know, pay a bill or, you know, buy a dog or whatever you're doing. Um Doge people are not super familiar with that. So, I think these basic sort of DeFi opportunities coming to Doge is kind of like an exciting stablecoin use.

The last, and maybe you can touch on where where you're seeing with kind of USD 1 across different ecosystems, um the thing I'm most excited about is yield. Again, Doge community, tens of millions of holders, no access to yield. Do stablecoins offer an opportunity for yield? Because right now, people just hold Doge. It goes up and down. They hold dollars, they get 0% in their bank account. What are you guys doing on the yield side specifically? Or what are, you know, other projects that have integrated USD 1 doing? I think that would be cool to know. Yeah, for sure. I mean, I think that there is obviously a huge wait for what regulation will look like in the US, and whether stablecoin issuers will be allowed to directly pass their yield to consumers. There is If I knew the answer to that question, I

think it would be it would be pretty beneficial for everybody to know, but unfortunately, do not. What I think that we are trying to do is build some of the primitives through which people can get um can use stablecoins productively. And for us, what that means is we partnered with Dolomite, which is an Ethereum uh native protocol that's been on Ethereum for about 4 or 5 years now, and we launched World Liberty Markets, which is our own lending market. That was launched about 2 months ago. World Liberty Markets now has about 600 mil of deposits, about 300 mil borrowed. A lot of that is actually, I think, 80 mil of that is ETH that is that is deposited on World Liberty Markets, USD 1 that's borrowed against

it. And it's exactly to your point. I mean, I think that that is a way for users to feel comfortable and actually productively utilize their stable coins or productively get stable coins to utilize outside of the ecosystem. Yeah, I think it's it's really fun for us because a lot of the Doge users that we have, they don't even know you can hold dollars on chain. I mean, they just don't Doge is on chain, the dollars are in my bank account or I mean, a lot of them still, you know, buy crypto with credit cards. So, it is sort of this exciting green field for us. It's like, "Hey, we can offer sort of these basic things that the rest of crypto's been doing, bring it to Doge, unlock, you know, a ton of value." And again, I mean, it's I think it's the it's the

biggest user base of active crypto users that are barely touching DeFi smart contracts or anything. >> And save them a lot in fees, as well. Exactly. I mean, a lot of them aren't even big sex users. I mean, they're like whatever kind of on ramp someone puts in front of them, they're like, "Okay, let me go in." And they end up paying, you know, 10% just to acquire some Dogecoin. Yeah, and I mean, like that's also the the whole point of stable coins is better, faster, cheaper dollars. That's been the whole pitch from the very beginning. That's the pitch for bringing it to payments. That's the pitch for why people like to trade on uh decentralized venues to get better execution, to get cheaper dollars that they can use and move around more quickly. That's where the work on the remittance flows goes. It's all based

around that idea and where it can benefit, whether it is existing asset holders on chain or people who are just trying to get a dollar sent back home. All of that is kind of facilitated by the same core assets, the same core primitives. Now, some might say that Dogecoin is better, faster, cheaper money or better, faster, cheaper Bitcoin. Um I say that it's funner. Um that's the one thing I can certainly say. Uh so, definitely accurate. Good alignment there. Uh funner money for sure. Um What do you think about I mean, okay, stable coins are kind of becoming this on ramp layer, as you said. It's like much it's just much simpler brings to this world. I from my perspective, it does unlock more yield for everyone.

Again, your bank gives you basically nothing and simply holding stables anywhere, you can, you know, earn basic yield. What are kind of the I don't know, what are like the other drivers that are going to bring another billion stable coin users on? I think a lot of it will be invisible, like people won't know they're using stable coins, but like what do you see in the next like, let's say, 5 years as being like the key drivers that continue to get people to on ramp? Yeah, I think so some of them are things that we are directly building for. So, we launched our own Agoric payments SDK last week. There is another version of that or an updated version of that that's coming out shortly, as well.

And if you believe the thesis, which I think we and many others do right now, including what you're saying built by Visa and Stripe and Circle and other companies, as well, that a lot of the commerce, a lot of the payments that will happen in the very near future will be driven agent to agent or agent to business, etc., then we believe that stable coins are a better form doing those payments because you can pre-fund a stable coin wallet that you can immediately direct your agent to do a billion different tasks that they now have immediate liquidity for. We believe that that's part of the future. We're building for that. I can see that being billions and billions in stable coin growth kind of across the board. So, I think that there's that. The other part

that we're spending a lot of time on is tokenization and RWAs. And we spoke about that a little bit earlier, but most of the RWAs in market today are not particularly interesting. You have tokenized gold products that I think are interesting and provide greater exposure to gold. And then you have a lot of money markets or tokenized T-bills, which again, interesting from the perspective of providing access to an asset globally, but not the type of assets that unlock investment or that bring non-crypto retail capital. So, sort of like or sorry, non-crypto institutional capital on chain. What we're working on is also tokenizing a whole bunch of different

assets. We announced that we're tokenizing the Trump property that that sale will go live in April. We are working towards some types of assets that we believe people will come on chain in order to get access to and that are uniquely positioned to benefit from living on chain. An asset like that that we can use as collateral in our own lending market that people can get liquidity against. Like the story that you're drawing with Doge and people wanting to get liquidity against their Doge, that's true for all of the most interesting RWA assets, as well. And that's a uniquely sort of on chain capability that you can facilitate to numerous to a lot of people at the same time.

I think that's a great segue because we're also, you know, very focused on RWAs, but again, the challenge is, okay, how do you make these fun or how do you make these assets interesting, right? Especially in the Doge world with this huge base of consumers, you know, they're not interested in buying some random apartment building in some city they've never been to just because it's been tokenized. But would they be interested in, you know, owning a share of their favorite sports team? Would they be interested in some you know, some safe access to something super high yielding? Like these are the things we're looking at to be like, "Hey, like there's actually fun stuff here."

Um but, you know, it's a challenge. I would say it's it's the challenge everyone in the industry is facing. We're like, "Okay, let's make stable coins fun. Let's make RWAs fun." If you don't make stuff fun in the Doge world, it's a little less exciting. But uh I think people will be kind of uh surprised, you know, by the end of the year, I guess, with the the quality and the I don't know, the sheer excitement around some of the the crazy RWA things that we're bringing actually to Dogecoin. Yeah, and like the RWAs that are issued, where I think we have a unique advantage here is the ability to procure interesting assets to tokenize.

And that's like a big part. Like, yes, you have to get demand for these assets. I think that there will be a ton of demand for these assets when they're online, but very few teams have the capability of actually speaking with issuers and getting them to feel comfortable with deploying on something that for most of them, they still don't have the greatest trust in, which is blockchain {slash} crypto industry as a whole. And I think once, hopefully, we break that barrier of having the first nine-figure huge RWA that is unique, that happens on chain, that gets fundraising very quickly, etc. Once that happens, I'm excited to see a world where, like you're talking about, like hopefully in the near future, you can

actually buy a part of a sports team, uh that a tokenized version of a sports team. Like you can buy these assets that typically most even large institutional investors would literally never be able to get a hold of. Um when Chelsea sold a few years back, you couldn't just get access to that, even though that was a collection of different institutional investors that participated together. We envision a world where the next time a football club sells like that or whatever it is, there are thousands of people, tens of thousands of people who participate. I love it. I mean, that that's kind of why we're all here, I assume. It's like democratizing or, you know, democratizing money, um democratizing access to financial opportunities through DeFi, etc. Um yeah, I I think that's cool if kind of

>> Yeah, it has to make good sense for the issuer, too, you know? Like for the buyer, it makes a ton of sense, super easy. But for the issuer, is it actually easier to raise capital this way? Is it actually cheaper to raise capital this way? If the answer to those questions are no, why would they do it? And, you know, for most issuers, they still view the answer as no when you're talking about things like an interesting like real estate property or sports team or an asset of that sort. And we are trying to work towards that answer being yes. I think that that answer is clearly yes, and there's still like an education barrier towards doing that. And also that first mover issue. Somebody has to do the first one. Somebody has to make it big. Somebody has to make it exciting.

And yeah, that's I'm excited to hopefully be the first ones to do that next month. Very cool. Okay, something coming next month. Um What has been I think we have a few minutes left. I I want to know kind of either what has been, I guess, the biggest challenge in this, you know, USD1 growth story or what do you see as like the biggest challenge to kind of go from, you know, 5 billion to 100 billion issued, uh you know, over the next months, years? Yeah, I mean, I think quite like stable coins are obviously as dollars, they're a commoditized instrument. So, convincing people as to why you should use one stable coin or another

actually requires you to have like a deep value prop. And that's whether you want to convince a protocol to work with you as a stable coin issuer or consumer. And those are slightly different value props. But why would it why would users use USD1? For us, that trading story of like use USD1 because you'll have better execution, you'll have um more access to different interesting assets that you can all denominate in USD1 that you don't have to actually switch out of USD1 to access. That story has been great. I think the next story for like 5 to 100 bill goes back to this like beyond interesting new venues that are coming out, whether those are new venues that are crypto native or not crypto native.

Be somebody who is working with interesting asset issuers to get new things on chain. Those are all things that are organically going to drive USD1, I think, from 5 bill to 100 bill and beyond over the next couple years. Very cool. Yeah, it's uh it's interesting to me to kind of hear that it's some of the same challenges or some of the same, you know, things we're trying to do purely on the Dogecoin side, unrelated to stables, but the challenge is the same. I mean, we're you know, we're dealing with a community that's really old that's just kind of been happy with, "Hey, Dogecoin works like this and we like it and we hold it and we send it to our friends and sometimes we buy coffee." But they they haven't had an ecosystem. And so, we're saying, "Hey, there's advantages to be had here. If we build a

whole ecosystem on Doge, there's fun to be had, but you have to like you have to incentivize them properly, whether it's fun, whether it's financially." So, um Yeah, I guess for you, what's the use case that you see the Doge community being most excited about when you tell them about it. I think the biggest thing they're excited about, and this is what I say, is like we add up the fees that all the big exchanges have made over the last few years, and I'm going to wrap up in 10 seconds cuz I'm getting the signal. We add up those fees, and it's like tens of billions of dollars of Dogecoin trading fees that we kept have been captured by a few companies. If we have Doge DeFi, Doge USD pairs, the users can actually share in the fees, the builders can share in the fees. That is billions

and billions of dollars that we can bring to the community. Excited to see it. Let's do it. Thank you everybody. >> Thank you, guys. Oh.