MORGAN STANLEY'S HUGE CRYPTO PLANS REVEALED! BIG XRP LEDGER & WALL STREET TOKENIZATION NEWS!

Tony Edward (0:05)

Hey folks, welcome into the Thinking Crypto Podcast, your home for cryptocurrency news and interviews. I'm your host Tony Edward. On your way in, please hit that subscribe button, as well as a thumbs up button and leave a comment below. If you're listening on a podcast platform such as Spotify or Apple, please be sure to follow and leave a five-star rating. All right folks, we have another round of major institutional adoption of crypto. So Morgan Stanley, the Wall Street powerhouse, sets up a digital asset lab to test stable coins, tokenization and DeFi applications, giving employees a dedicated facility to explore blockchain technology without risk to the bank's core systems. So we're seeing all of Wall Street, all the major banks and asset managers and stock exchange are headed in the same direction. And remember, Morgan Stanley was late to the game here, right? They were the last to kind of come around and launch a Bitcoin ETF. Now they're setting up a crypto lab. I mean, guys, the train has left the station, everybody's on board. So I hope you understand what's taking place here.

Let me give you some more details. So Megan Brewer, who leads Market Innovation and Labs at the Wall Street Bank, described the Digital Asset Lab as part of the bank's existing network of innovation labs. These labs give Morgan Stanley employees dedicated facilities to test new technologies without risking the bank's core systems. It simply means these technologies are first tested before they interact with the bank's systems, Brewer said. Now this makes sense. We've seen it at other companies. They have R&D departments, they do a lot of piloting, testing, research. And when they have something that is feasible, they then push it to production with smaller tests and then they push it to throughout the entire bank. So this is par for the course. She added that these labs run up to 270 projects annually, have campuses across cities including New York, Glasgow, UK, Bangalore, India, and work closely with specialized groups that includes the bank's digital asset team headed up by Amy Oldenburg. Here's a quote. The digital asset lab will give us a secure, compliant and segregated environment to be able to test and explore some of these new areas of digital assets, Oldenburg said.

So again, guys, they're all here. They're all getting involved. I hope you see what's happening. We are beyond the point of is this a fad? Is this a scam? Is this a Ponzi and all that? This is a technology that will serve as the layer for a lot of transactions and how we verify information and do payments and much, much more. So it's incredible what is taking place. And here is another example. The Cboe, the S&P Dow Jones, may explore tokenized options contracts under extended licensing deal. The agreement opens the door to tokenize derivatives as some of Wall Street's biggest institutions including the NASDAQ, New York Stock Exchange and DTCC move traditional markets on chain. So what we're going to see is a lot of innovation. Folks are going to get creative and launch a lot of different projects, build unique products we've never seen before on the blockchain tech. So financial markets, heavyweights, Cboe global markets and S&P Dow Jones indices may explore tokenized options under a newly extended licensing deal, another sign that blockchain based products are moving closer to traditional derivatives markets. The firms announce Monday a 25-year extension of their long-standing agreement giving the Cboe exclusive rights to offer its flagship S&P 500 index options through 2051 Tucked into the announcement was a potential new direction for the relationship. The Cboe and S&P Dow Jones indices said they may collaborate on innovation beyond traditional index derivatives including products such as tokenized options contracts.

So we know they're going to do it guys.

And it just takes one player to do it and then it kicks off game theory. Just look at what Black Rod did. They launched the Bitcoin ETF, then all Wall Street followed. They launched the first tokenized money market fund, then all Wall Street followed, right? We've seen it time and time again and they're all in a competition right now. And again, I think they all have their marching orders. They know what the game plan is and that is the capital markets, governments and economies all running on blockchain rails. Now, yesterday, I talked about Goldman Sachs bringing their $100 billion treasury fund to LINQ, L, Y, and Q, which we get some additional information here, is actually a permissioned Avalanche layer one. So the Avalanche blockchain, which has the native token AVAX, which I do have in my portfolio.

So they're probably, as I said in yesterday's podcast, going to tokenize this eventually or tokenize something similar to this fund, but right now they're not. But nevertheless, they're bridging to crypto firms, right? Because there's liquidity, there's investors and more. So this is a very positive sign. So just add some additional information and color to the news that was shared yesterday. Now folks, we have huge XRP news. So Ripple announced today, a licensed Central Securities Depository is recording securities ownership on a public blockchain for the first time. And they're doing it on the XRP Ledger. CSDBR is partnering with Ripple to bring Brazil's regulated capital markets on chain, starting with BTG, factual fund shares secured by Ripple custody. This is huge adoption news for the XRP Ledger. So as we've talked about, the token itself doesn't have to be used. Remember, we're talking Metcaps law here with blockchain networks. This applies to Ethereum, Solana and others, right?