00:01:58 · Brian Armstrong, Molly O'Shea
[00:01:58] S0: There [00:02:00] S1: have been some companies that have said they're going to release this. There's also exchanges that wanted to release this. Why has that not worked before and how are you gonna make it work?
00:02:08 · Brian Armstrong, Molly O'Shea
[00:02:08] S0: Yeah. So lots of people have been talking about this for a while, and there are some products that are out there today, but they're actually not one to one backed by the stock itself. They are a derivative or a synthetic. So there are ways to get exposure, but you're not un you're not actually owning the underlying asset. And that's what was powerful about stablecoins. What caused them to take off so much is once there was a trusted stablecoin like USDC, where you could say, all right, I know and believe that there is a dollar underlying every single one of these tokenized dollars, then it really took off in a massive way, and we saw with regulatory clarity like the Genius Act that now hundreds of large US companies are adopting it. So we think that the same thing is on the cusp of happening now, especially with, the market structure legislation or the Clarity Act is is sort of the next piece of crypto legislation that we think is right on the horizon. So, Coinbase is the most trusted brand in crypto. I think we're the the ideal company to actually be that trusted, that bridge, you know, where we have the underlying stocks, a one to one token, minted on top of it. And then the benefits of that are that, people all over the world can trade it. Right? There's actually about 4,000,000,000 people in the world today who are unbrokered. They don't have access to any high quality US investments. They can trade it. [00:03:20] S1: Say 4,000,000,000?
00:03:20 · Molly O'Shea, Brian Armstrong
[00:03:20] S1: Say 4,000,000,000? [00:03:20] S0: Yeah. 4,000,000,000, like half the planet. That's They simply can't get access to any high quality, US companies to invest in. And so they're stuck just holding cash and like lower quality investments. And then, you can get, you can do 20 fourseven trading with tokenized stocks. So that's gonna totally change the world, on that dimension. And then lastly, one kind of cool feature is that you can just really easily send these stocks just like any other token. So you can gift it to your friends. You know, you can give people a share of Coinbase or Nvidia at, you know, your nephew's birthday party. So I don't know. It just it brings stocks onto modern financial rails, and it's gonna be really cool. [00:03:58] S1: In addition to that, I I really wanna get into the advisor Yeah. Product. So you have an SEC registered AI agent adviser. How does that work?
00:03:58 · Molly O'Shea, Brian Armstrong
[00:03:58] S1: In addition to that, I I really wanna get into the advisor Yeah. Product. So you have an SEC registered AI agent adviser. How does that work? [00:04:10] S0: Yeah. Okay. So we, we knew that AI tools like need to be embedded right in the Coinbase app because people are asking their AI, like a lot of investment and financial questions right now, but they, the, the AI agent doesn't really have context about what's in your account and what your financial goals are. It can't actually take actions on your, on your behalf. So we launched this thing Coinbase advisor. It's built right into the Coinbase app and you can talk to it in plain English and it can do research, but it can also conduct trades, do tax loss harvesting strategies. Like it can do financial literacy or education. Okay. So then most people on the internet, you know, they, when they write something on X, they say, this is not investment advice. And we thought, you know, we're the most trusted brand in crypto. Why don't we do build this the right way and actually make it real investment advice? And, the advice you're getting now from it is, yeah, it is investment advice. We can actually say that. [00:04:58] S1: How are you tracking its performance?
00:04:58 · Molly O'Shea, Brian Armstrong
[00:04:58] S1: How are you tracking its performance? [00:05:01] S0: Well, so right now, we are collecting all of that data. One of the things that I'm excited to do over time is actually build a leading front like a frontier model for investing, right? So that a lot of like, the scaling laws apply anytime you're building one of these AI models, and we're collecting starting to collect a lot of that data now. Today, the human's in the loop on these investment recommendations it's making, so it'll, you know, it can research things, it can propose things that you might wanna do, but the human is hitting accept and deciding what to do, and then we can start to build that data set over time, which I think will be a real moat. [00:05:36] S1: I guess, like taking a step back, what is the broader vision of all these products and what are you, what is the goal you're building towards?
00:05:36 · Molly O'Shea, Brian Armstrong
[00:05:36] S1: I guess, like taking a step back, what is the broader vision of all these products and what are you, what is the goal you're building towards? [00:05:45] S0: Well, the mission of the company is to increase economic freedom in the world. And we believe that it's important for everybody to have access to good financial services, to have sovereignty of money, like to have sound money that can't be eroded via inflation, for people to raise money to start a company or to get a loan or to make payments all over the world. We wanna democratize access, bring down the fees, reduce the friction, and that's how we're gonna unlock a lot of prosperity in the economy and, frankly, like, for civilizational progress. There's a lot of good research out there on economic freedom and the different countries of the world, and the highest economic freedom countries, it's positively correlated with all kinds of things, not just higher GDP per capita. It's also correlated with higher happiness, better treatment of the environment. The poorest 1010% of people in those societies are much better off, and it actually is correlated with, believe it or not, like, reduced, corruption, reduced war, reduced infant mortality, like, kinds of things. And so we believe that economic freedom is a foundational necessity for all civilizational progress, and crypto is this unique technology which can actually update lots of financial services and create more economic freedom in the world.