Episode 1137 of Bitcoin And . . . is LIVE!
Topics for today:
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https://decrypt.co/332505/strategy-raises-record-stock-offering-buy-bitcoin
https://www.coindesk.com/markets/2025/07/29/sec-approves-in-kind-redemptions-for-all-spot-bitcoin-ethereum-etfs
https://decrypt.co/332412/bitcoin-mixer-samourai-founders-plead-guilty-crypto-privacy
https://atlas21.com/more-than-half-of-the-new-bitcoin-treasury-companies-have-lost-over-50-of-their-value/
https://decrypt.co/332333/twenty-one-boosts-bitcoin-treasury-5-1-billion-tether
https://www.coindesk.com/markets/2025/07/29/billionaire-ray-dalio-backs-15-allocation-to-bitcoin-and-gold-amid-u-s-debt-spiral
https://decrypt.co/332518/visa-flags-modest-stablecoin-uptake-calls-clear-regulation
Topics for today:
- JPMorgan now lets Chase cardholders buy crypto and redeem reward points for USDC on Coinbase, marking a troubling but significant shift in TradFi’s crypto integration.
- Strategy raises another $2.5B using STRC preferred stock, instantly deploying it to buy over 21,000 BTC without diluting shareholders.
- The SEC has approved in-kind redemptions for all Bitcoin ETFs, allowing direct BTC transactions—huge for ETF efficiency and potential real-world custody validation.
- Half of all new Bitcoin treasury companies launched in 2025 have already lost over 50% of their value, proving the lollipop model may be out of flavors.
- Samourai Wallet founders plead guilty in a privacy case, sparking broader fears about what this means for Tornado Cash and self-custody freedoms going forward.
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Today's Articles:
https://cointelegraph.com/news/jpmorgan-coinbase-partnership-crypto-rewards-usdchttps://decrypt.co/332505/strategy-raises-record-stock-offering-buy-bitcoin
https://www.coindesk.com/markets/2025/07/29/sec-approves-in-kind-redemptions-for-all-spot-bitcoin-ethereum-etfs
https://decrypt.co/332412/bitcoin-mixer-samourai-founders-plead-guilty-crypto-privacy
https://atlas21.com/more-than-half-of-the-new-bitcoin-treasury-companies-have-lost-over-50-of-their-value/
https://decrypt.co/332333/twenty-one-boosts-bitcoin-treasury-5-1-billion-tether
https://www.coindesk.com/markets/2025/07/29/billionaire-ray-dalio-backs-15-allocation-to-bitcoin-and-gold-amid-u-s-debt-spiral
https://decrypt.co/332518/visa-flags-modest-stablecoin-uptake-calls-clear-regulation
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[00:00:02]
David Bennett:
It is 07:49AM Pacific Daylight Time. It is the July, or rather the last day of the 2025, and this is episode eleven thirty seven of Bitcoin, and we're just gonna run right into it. Ezra Rivera has this one from Cointelegraph saying that JPMorgan is going to allow crypto purchases with Coinbase. It's probably a deal made in hell, but we'll get into it. JPMorgan Chase has indeed partnered with Coinbase to introduce crypto integrations to its customers, a step in bridging traditional finance with digital assets. Coinbase announced on Wednesday that Chase credit card holders, yes, indeed, this is a deal made in hell, will be able to use their cards to buy crypto on Coinbase starting this fall. And in addition, Coinbase said JPMorgan's customers will be able to redeem their Chase Ultimate reward points for USDC.
That's Circle Stablecoin. Coinbase said that this will be the first major rewards program redeemable for crypto, quote, for the first time, points from a major credit card rewards program will be redeemable for crypto rewards. I gotta pause because that's freaking brilliant, dude. And the reason I say that is that, like, my wife has all kinds of airline miles. Can't use them. They're they're just worthless crap at this point. And I've heard many, many, many stories of people saying that their other other non airline credit card based stuff, that their points aren't really getting them anything. But now it looks like this deal that's been made with the devil, it might actually have some utility for some people. I'm I'm not a fan of Circle, but I'm also not a fan of having, like, look you know, you look at your your credit card bill or whatever and you've got, like, 57,000 points in flight miles and you can't even get a ticket to freaking Dallas one way. Anyway, Coinbase also said that Chase card users can link their accounts to Coinbase directly and the exchange said that this feature which is scheduled for next year will give users easier ways to buy crypto.
I wish that I hate that word. The new integration follows a broader push by JPMorgan into digital assets, probably to Jamie Dimon's chagrin. But on July 16, Jamie Dimon did reveal in an earnings call that the company had plans to be involved in stablecoins. The move was driven by competition with other fintech companies that are trying to replicate traditional financial systems, quote, we're gonna be involved in both JPMorgan deposit coin and stablecoins to understand it and be good at it. Okay. Alright. That's a hell of a sentence. And apart from stablecoins, JPMorgan is reportedly looking to offer direct loans against Bitcoin and Shitcoin number one. On July 22, the Financial Times cited anonymous sources who reported the bank's exploration if of crypto backed loans.
And the report said that the bank may start lending against crypto by 2026. However, the plans are subject to fees or rather to change. Sorry. I was looking to something else where it says fees. Anyway, e even though JPMorgan may be eyeing crypto loans, decentralized finance players still have advantages over the bank and other traditional financial players on crypto loans according to one inch cofounder Sergej Coons. On Wednesday, Coons told Cointelegraph that DeFi strength lies in offering a wider range of accepted loan collateral. He added that market driven optimization in De Fi allows users to enjoy lower fees. So ladies and gentlemen, boys and girls, what have we learned? Well, everybody knows that credit card and airline miles and points and stuff are basically turning into worthless garbage, and now they're going to let you convert that into an actual stable coin.
We've also learned that JP Morgan, even though Jamie Dimon hates Bitcoin and everything crypto, has no choice but to get into this game and they have actually partnered with the one demon in the room that is the the big boy which is coinbase. It's not it's not good, but it's inevitable. And this is the change that that everybody is seeing. And I am seeing people admit about all this type of thing. Like I saw a note earlier today on Nasr, it said something about Bitcoin losing its decentralization and, I don't know, some some other things about it. And I hear people crying about this, and this is, I don't want to say inevitable, but it is, kind of. But I'm not I I'm just not worried because Bitcoin itself isn't centralized.
By its very nature, its very architecture, it's not. What we do with the tool doesn't determine that the tool changes. A hammer is still a hammer, a wrench is still a wrench. You can fix a car or you can build a house or you can use both of them to kill the shit out of somebody. It doesn't really matter. But I honestly, this is probably going to be a very good deal for both Coinbase and JPMorgan. So we'll have to see. But late you know, meanwhile, Michael Saylor's strategy has raised $2,500,000,000 in a record stock offering to yet buy more Bitcoin from Decrypt and Vince De Aquino. Michael Saylor's strategy is yet again, one more time, pulled off the largest crypto linked equity raise this year, closing a $2,500,000,000 offering on Tuesday through a deal involving STRC, the newly created class of perpetual preferred stock that pays floating monthly dividends starting at 9%.
Wow. That's almost double digits. That's almost like a but never mind. I won't get into it. It's just another flavor of lollipop. But proceeds were already used. They immediately bought 21,021 Bitcoin at an average price of 117,256, bringing strategies total holdings to 628,900 and and no. Sorry. $6.28 $7.91 Bitcoin, which is now worth more than $74,000,000,000 at current prices. Once listed, STRC would be the first US exchange listed perpetual secured security issued by a Bitcoin Treasury company to pay monthly dividends, the company said in a statement. The STRC sale marked strategy's largest largest capital raise to date, surpassing its $800,000,000 convertible note offering from June just last year.
It also follows the March launch of STRF or Strife, I think, which Saylor initially described as their crown jewel backed by a $2,100,000,000 at the market program. Now unlike Strife, the new STRC offering is aimed more squarely at retail income investors. That's just Joe on the street. Alright? That's what retail is. With floating monthly payouts with no maturity. It never matures. It's always there. Yield products such as this offer exposure without direct spot spot market volatility, Vincent Liu, chief investment officer at Kronos Research, told Decrypt, marking the progress among, quote, structured capital flows that deepen Bitcoin liquidity without pressuring the order book.
Other observers say the rate shows strong demand for financial instrumentation that package Bitcoin exposure in less volatile, more accessible forms. Yeah. Because nobody has the cojones to hold the raw asset. It that people are just scared. They just get scared. Quote, institutions want Bitcoin exposure, but need a package like traditional investments, Ryan Yoon, senior analyst at Tiger Research, told Decrypt. STRC works because it pays dividends like a bond while giving indirect Bitcoin exposure, solving the problem for pension funds and insurers who can't buy Bitcoin directly.
I'm pausing to say, I think that's going to change. I I think that pension funds and people like insurers and those types of institutions that right at this moment cannot hold the underlying asset, I guarantee you that's gonna change. They will be able to and they're going to. Anyway, investors appear to be treating it as both a yield product that fits their compliance requirements and a way to get crypto exposure without the operational headaches of holding Bitcoin themselves. The corporate Bitcoin treasury playbook, as espoused by strategy, looks simple, but it isn't easy to copy. You need three things: enough Bitcoin to be credible, access to Wall Street financing tools, and a stock price that trades above the value of your Bitcoin holdings.
Most wannabe digital asset treasury companies lack all three, Yoon argued, because strategy got there first and then scaled. Newer entrants, however, would struggle because they don't have the credibility or financing access for the model to really scale. These companies need a brand beyond just hoping the price goes up, Yoon said. Now remember, that's the end of the article, remember that nobody knew what MicroStrategy was four years ago. Nobody in this space ever said a word about it until Michael Saylor started buying Bitcoin. And since he was basically first to the plate, we started looking at what MicroStrategy does.
The community, the Bitcoin community kind of helped Michael Saylor brand MicroStrategy.
[00:10:49] Unknown:
We helped brand. Worldwide brand.
[00:10:53] David Bennett:
Now, of course, it's it's changed the strategy, but it wasn't that he had a brand because he had a killer product. Nobody really cares about unless you're in business, you really don't care about business intelligence. Right? It's not something that's not like Apple branding or or Microsoft branding or something like where everybody on the street knows the brand. Michael Saylor built the brand on the back of Bitcoin and the people that supported Michael Saylor. So he's got the brand now, and Meta Planet may actually be able to pull that off. But I told you last during the last show, this shit's losing steam and the new entrants are gonna become less and less and less successful.
And I'll prove it to you later on in the show, specifically the second half. But before we get there, the SEC has approved in kind redemptions for all spot Bitcoin ETFs. Helene Braun from CoinDesk. Let me get up here to the top. And the US Securities and Exchange Commission has approved the use of in kind creation and redemption processes for all spot Bitcoin and Shitcoin number one exchange traded funds, marking a significant shift in the regulators' approach to digital assets under new leadership. Great. This is awesome. The decision allows authorized participants, which means large institutional investors who facilitate ETF liquidity, to create and redeem ETF shares directly into Bitcoin rather than having to use cash.
The mechanism is widely seen as more efficient and secure as it lets authorized participants to closely track investor demand and adjust ETF share supply in real time without the need to convert assets back and forth into fiat currency. This marks the first SEC's major crypto friendly policy move since Paul Atkins was named chair of the agency earlier this year. Atkins, a former SEC commissioner known for his market friendly views, has long advocated for a more open regulatory approach towards digital assets. Quote, it's a new day at the SEC, said Atkins.
A key priority of my chairmanship is developing a fit for purpose regulatory framework for crypto asset markets, and I am pleased that the commission approved these orders permitting in kind creations and redemptions for a host of crypto asset ETPs. Investors will benefit from these approvals as they will make these products less costly and more efficient. The shift comes after BlackRock filed a request back in January to allow in kind transactions for its iShares Bitcoin Trust and other issuers including Fidelity and ARK Invest quickly followed. So it happened.
Now when this thing goes live, I don't know. It's probably not today. But it simply means that I could take Bitcoin out of my hard my cold wallet, which I'm not going to do, and I can send it directly directly to the iBit ETF, but I lose custody. Alright? Now, there's there's a couple of reasons why this is good. At least one of them is the fact that Fannie Mae and Freddie Mac are going to have to start looking at Bitcoin on people's balance sheets as as credit worthiness. But the as it's written right now, the the way that that's gonna work is that you're going to have to actually pony up that But But I don't wanna get into into the weeds on that one. I'm just saying that this is now a a hardcore mechanism for people that have Bitcoin on cold wallets to be able to say, well, here's my Bitcoin. It's over there on iBit. Here's the transaction.
It's being held by the third party. Boom. So it may make your stomach kind of churn a little bit, but, you know, it's probably not going to be as bad as we think. It it just it really depends on your attitude towards how you wanna handle your Bitcoin. Nobody's gonna force you to do this. So just keep that in mind while you butter your bread with some great ghee. The Circle p is open for business. Circle p is where I bring plebs like you that have goods and services for sale to plebs like you who might want to buy said said goods and services for sale that are made by plebs just like you. And great ghee makes wow.
He makes the best ghee. And if you don't know what ghee is, it's clarified butter. It becomes very, very shelf stable at room temperature because of that, but it changes the flavor profile. And the way it works is that it basically makes the protein the milk solids and milk proteins fall out of the actual milk fat. And that's what butter is mostly fat, but it's not all fat. And if you keep butter at room temperature for too long, it will definitely go rancid. You don't want that. So if and and by the way, the ghee has a different flavor profile. It's it's heavily used in Indian cooking, but you can use it anywhere that you use butter. And it's got a nice depending on how you handle it, it has a sometimes a deeper flavor.
Great ghee. I I he sent me a jar of it and we love this stuff. You can get an eight ounce grass fed pasture raised jar of ghee for 24,997 sats and make sure that you tell Great Ghee that you heard about it here on the Bitcoin and podcast by using the code Bitcoin and I think that there's a small discount. I'm not sure, but make sure that if there is that you don't miss out. Plus, if Great Guy doesn't know that I was able to make a sale for him, Great Guy won't be able to value for value me on the other end and send me satoshis for whatever he thinks that sale was worth. Now the big news is that the Bitcoin Mixer Samurai founders have pled guilty in the crypto privacy case.
This makes me sad. Matt DeSalvo from Decrypt tells us what's implied here. The founders of Bitcoin mixer, Samurai Wallet, plead guilty on Wednesday, federal court documents show, in a case that has rattled privacy advocacy groups. Both William Lonergan Hill and Keone Rodriguez will change their pleas in a New York court according to the filing in US District Court for the Southern District Court of New York. Feds arrested Hill and Rodriguez last year and then shut down the Bitcoin mixing platform. The Department of Justice alleged that the app was an unlicensed money transmit transmitting business used by criminals.
[00:18:30] Unknown:
So there's not much more to say here.
[00:18:33] David Bennett:
Lowell Elites is is going to probably end up with a very in-depth and detailed account on what the implications are, but I personally think that this does not help the tornado cash guys. I I and I honestly do not know why why these guys changed their plea. That's hopefully one of the things that we'll be able to uncover as a little bit more time goes by. But first, we gotta run the numbers. West Texas Intermediate Oil is down one and a quarter point to $69 and a dime. Brent North Sea is down almost a full point. Natural gas is down point 3% to just over $3 per thousand cubic feet, and gasoline is down a row of sticks to $2.24 per gallon. All your shiny metal rocks are not doing well. They're everything's in the a lot of things are in the red today.
Gold is down point 1% to 33.49 in three dimes. Silver is down over three full points. Platinum is down five and a half. This is weird. Copper, according to cnbc.com, is down 21.92%. Whoever was holding copper just got rugged. Wow. 21.92% to the downside on copper. If that's not a mistake, if this is a real number, somebody got wiped wiped out. Actually, a lot of people got wiped out on that. That's not good. Palladium is down 4.18%. Ag is mostly in the red today. Biggest winner is chocolate, 3.6% to the upside. Biggest loser appears to be lumber, which is down point 94%.
Meanwhile, live cattle is down point 7%. Lean hogs are up point 6%. Feeder cattle are down a quarter. Meanwhile, the Dow is running in the red, but mostly just sideways. S and P is up a third, Nasdaq is up a third, and the S and P Mini is down a half of a point. Bitcoin chilling out at a $117,880 per coin, that is a $2,350,000,000,000 market cap, and you can get 35.7 ounces of shiny metal rocks with your one Bitcoin of which there are 19,899,672.7 of. And average fees per block are fairly low, And we do have quite a bit of blocks in mempools around the world, probably about 28 blocks carrying 40,000 unconfirmed transactions waiting to clear at high priority rates of 2 Satoshis per v byte. Low priority is going to get you in at one.
We've had a drop in hash rate, not terrible, but 896.9 exahashes per second, and you can do with that what you will. From Arizona man, which was the day before yesterday's episode of Bitcoin and I got Turkey. Thousand says welcome back. Jubjub with a thousand says glad you had a great trip. Happy to have your podcast back in my feed. Digital Panhandler with a thousand says nothing. And Psyduck with seven thirty six says Psyduck. Bitcoin Sandy with 500 sat says always great. That's the weather report. Welcome to part two of the news that you can use from Atlas twenty one. As promised, here's the article about Bitcoin treasury companies losing steam. I'm not talking about all Bitcoin treasury companies here. We I kind of went through that. Michael Saylor was, you know, the first and then you got Meta Planet and then you got you had a good handful of of very large entities that are considered pure play Bitcoin treasury companies and we can say what we want about them but they're probably not gonna go away.
However, do you may or may not remember this. Back I can't remember when this was. I wanna say this was around 2017, 2018. I think we were coming off of the heels of the the split between Bitcoin and what became the Bitcoin Cash, which then got split itself and became BSV. There was an I think it was an iced tea company. Yeah, they made iced tea and they were a failing iced tea making company and they said that they converted over into bitcoin mining and their stock price went through the roof. And then it quickly came back down because it was kind of all bullshit. And then I remember something I Kodak, I don't know, made a deal with some miners to put the the their brand on these particular miners and that was a failure.
It's Bitcoin causes affinity plays to occur and treasury companies, Bitcoin treasury companies, whether pure play or not, are causing another kind of affinity scam, for lack of a better term. But the newer entrants are finding it very, very difficult to get any traction, like, at all. So again, from Atlas twenty one, we have this one. More than half of the new Bitcoin Treasury companies have lost over 50% of their value. So it's no longer a slam dunk just to say, hey man, we're buying Bitcoin and putting it on the balance sheet. Because according to data from Bitbo, all 43 companies that added Bitcoin to their treasury in 2025 and are still publicly listed are reporting negative performance compared to the highs reached earlier this year.
The median drop from the annual highs among Bitcoin Treasury companies stands at a negative 52.4%. This means that more than half of the companies have lost over half of their market value in just a few months. 23 out of 43 monitored companies representing 53% of the sample have posted losses exceeding 50% from their 2025 peaks. An example of this decline is Cantor Equity Partners. The company peaked at $59.75 per share on May 1 right after announcing their corporate merger that led to the creation of the company Twenty One, the entity led by Bitfinex, Tether, and Jack Mallers.
Today, Kantor Equity Partners is trading at $28.31 per share on Nasdaq, marking a 52% drop from its yearly high. The direct correlation between the price of Bitcoin and the stock performance of these companies has proven to amplify both gains and losses. I'm not sure just how much I put credence in that last sentence about amplification of gains and losses. I I just I think what's what's going on here is that
[00:26:16] Unknown:
people are getting bored as people do.
[00:26:21] David Bennett:
They're getting bored with the announcement of yet another treasury company. They're getting bored with the announcement of yet, you know, a a major player like Jack Mallers entering the market even though it's gonna be probably a big deal. But everybody did make a huge deal out of the Cantor Equity Partners being part of the 21 play, and yet they've lost quite a bit of value on their stock price for their shareholders. And that's not going to be that's not that's not a good look. And I'm not talking about for Bitcoin. I'm talking about for Cantor Equity Partners because their partners some of the partners are probably not happy and there's other stakeholders involved and they're probably not happy about this shit either.
I'm just saying, look, if you flood the market with a single product, even if it's from 50 different companies, and you've got like like I was saying the day before yesterday, you got 50 lollipop makers and all of them seem to have like four or five flavors. I don't think we need that many lollipops. And I think people are getting bored with lollipops. They're gonna want gummy bears next or Swedish fish. What just go to the go to a a big ass one of those big ass candy stores that you find in the mall and just pick one. Right?
We're like this. I mean, hairless apes falling out of trees and eating mushrooms to gain some kind of intelligence apparently always results in somebody getting bored to tears. And I think that that's really what's going on here. The price is kinda stagnant. You know, we're we're in this in this range. We keep getting nothing but good news to keep trading in the range. We keep getting nothing but physical Bitcoin being taken off of the market by all these companies that want to be treasury companies and we're still trading in the same range. It just goes on and on and on and on and on. And at one point or another, these bottom tier companies are probably going to end up selling their bitcoin and you're going to be looking at not havoc and not a holocaust, but you are going to see negative price pressure.
Because some of these guys got into this as a hail Mary and for half of them it seems like it's not working so just be aware that shit's on the horizon and speaking of 2121 boost Bitcoin Treasury total to $5,100,000,000 with help from Tether Bitcoin Treasury twenty one Capital has increased the amount of Bitcoin it will hold when it begins trading after adding about 5,800 BTC from Tether, the company said on Tuesday, potentially making it the third largest corporate holder of the asset. The firm, the product of a joint effort by Tether, Bitfinex, Kantor, Fitzgerald, that's we were just talking about, and SoftBank, said that it will have 43,500 Bitcoin. That's about $5,100,000,000 at the current prices.
Quote, with the partners, capital, team, and structure we've assembled, we feel like we can do anything, and we're just getting started, twenty one CEO and cofounder Jack Mallor said in a statement. The company will join a rapidly growing list of firms that are making accumulation of the asset their primary focus. It had planned to start with a treasury of more than 42,000 BTC. Austin, Texas based twenty one will hold more Bitcoin than any other corporate entity except for strategy and Bitcoin miner Mara Holdings. Bitcoin treasuries are firms that hold BTC and allow more traditional investors to gain investors to gain exposure to the leading cryptocurrency via shares that trade on stock exchanges. Let me pause just to to clarify.
It's an ETF. Not exactly. It's a different structure, but it gives retail the same ability to expose themselves to the price of bitcoin without actually owning it why this is a thing is beyond my comprehension but it is right and nothing stops that The I I wish I had a very good explanation as to what it is about human psychology that they want to be exposed to the best asset on the face of the planet, but they don't actually wanna hold it. I know for some institutions, like the aforementioned, like, four zero one k's and pension funds and insurers and stuff like that, they can't legally do that. But I'm still dead set in believing that that will change.
But will they? Even if they could, will they? Would they rather have somebody else do the heavy lifting for them when there's no heavy lifting involved. And that's where the logic of this entire thing fails for me. I don't get it. It's not that hard. And for large institutions with very large amounts of capital invested in the underlying asset itself, there are solutions to make you feel nice, safe, and secure. And, hell, you can even involve an external third party like Unchained to help you set up a multisig wallet that's like I don't know three of five you know or five of seven or something like that where Unchained holds a key and the board of directors of whatever company that wants to actually hold the underlying asset, they hold keys and they've all got to collaborate together if they want to move any amount of Bitcoin whatsoever.
And like let's say it's a three of five multisig like Unchained or either three of the people that hold keys in the company need to get together and say, we're going to do this, we're going to move it to this wallet or we're going to sell it. We're going to do whatever it is we're going to do. They all have to agree and they agree by signing that transaction in all three of them, at least three of them out of the five that hold the keys need to be able to do that in order for the transaction to go through. 00Three:3five2000Three:5five22 Speaker one There's plenty of safeguards here.
I mean, plenty of safeguards. There's no reason whatsoever that you have to use something like I bit or BlackRock the iBit BlackRock Bitcoin spot ETF it's not necessary and yet with all the education that's out there with all the harping that Bitcoiners do with all the emails and the letters sent, you should self custody. Nothing has told Michael Saylor that he should actually or has has worked to get Michael Saylor to take custody of his own Bitcoin. Even he uses Coinbase, as far as we know, to custody the Bitcoin for him. And he knows he has access to to the finest Bitcoiners that have been around the longest. He can call any one of them and they would be more than happy to help. And as far as I know, he hasn't called a soul to say, let's convert this to a multisig hold.
I don't know why these people do it. But, well, let's go on with the story. 21 is a new kind of public company built on Bitcoin backed with proof and driven by a vision to reshape the global financial system, said Mallers. Quote, we're not here to beat the existing system. We're here to build a new one, end quote. Twenty one is launching through a planned SPAC merger with Cantor Equity Partners, the same people that lost half the value on their stock, which it's a black it's a blank check company affiliated with the financial services firm Cantor Fitzgerald at large.
It trades on the Nasdaq under the ticker symbol CEP, and shares of CEP closed Tuesday down another 4.5%. When 21 launches, the company will trade under the ticker XXI. Okay. So that's the end of the story. Oh, wait. No. It's not the end of the story. Hold on. There's one more. The firms behind the new treasury are a mix of traditional financial giants and crypto companies. Tether is the biggest issuer of stablecoins, while SoftBank is a Japanese multinational investment holding company. Bitfinex is a crypto exchange, and Cantor Fitzgerald is a Wall Street firm, previously headed up by US president Donald Trump ally and US Secretary Of Commerce Howard Lutnick.
So there's the end of the article. I keep hearing this, and I even had one of, you know, one of my friends on Noster wrote me this morning while I was waiting in chairs,
[00:35:36] Unknown:
in the hospital because my wife had an appointment. And
[00:35:40] David Bennett:
I get this I get this note saying, hey. Do you know when twenty one's gonna launch? Because I'd like to get in on that IPO. I'm like, you know, okay. I'm I'm not gonna say anything about that at all. I I honestly think you should just buy Bitcoin and hold Bitcoin, but you do you. But here's the thing. Nobody knows when the fuck this thing's supposed to launch. I don't I mean, I have read story after story when it when it launches when it launches. It's gonna launch soon, you know, soon, t m. When? What's the day? Right? What's the day? And if you can't give me the day, then that might actually be because there are certain hoops that they've got to run through, which I know that they do, and that there's no way to say when on an exact day the IPO is actually going to happen. And that's okay.
It's just when story after story after story doesn't say why they can't give a correct date, that just I don't know. It just makes it feel like hype, and I hate I just don't like the thought of Jack Mallers being involved in a hype machine. I I don't think it's I I don't know, man. I'm just gonna say it straight out. I don't think it's good for anybody's reputation. I think hype is is, well, it's hype. I don't think it's a positive in the human experience. But there's also one other thing people need to understand about IPOs.
[00:37:09] Unknown:
Are you a credited investor?
[00:37:12] David Bennett:
Do you have a million dollars in the bank? If you don't, then the chances of you getting in on any initial public offering by any publicly trade soon to be publicly traded company is small to none. How do I know? Well, there was a company, and I can't remember the name of it. And I knew exactly when they were gonna launch because they it was reported, said, hey. We've we've cleared all the hurdles and the SEC and everything's fine. Federal Trade Commission's fine. We're good to go. I don't know. Let's pick a date. October 16. I think it was, like, '19 or 2007 or something like that, and I can't remember the name of the company. So at the time, I'm still kind of in I'm still in the stock market.
I still think this is the way to go. Hadn't heard about Bitcoin. Pick up the phone, call my broker, and say, hey. I need you to, arrange where I can be part of this IPO. I wanna get some shares of this company when it launches. Here's the ticker symbol. Here's the company. Look into it. He goes, woah. Woah. Woah. Woah. Woah. Stop. Stop. Stop. And I go, what? And he goes, no you're not getting in on that IPO like why not he's like you're not accredited investor dude if you you don't have a million dollars which is apparently one of the things that they test for and I've I'm holding up my hands with quotes it's like this arbitrary almost invisible barrier that as long as you've got a million dollars that you might be able to be considered a credited investor.
Right? And if you don't have that, you're not participating in the IPO, and that was the second when I realized just how rigged the system is. So if you guys are looking to get in on 21, good luck, and you may do it, you know, but honestly don't get your hopes up. And we're gonna have to we're gonna it's gonna take a lot of work for us to figure out exactly when twenty one is gonna go public because I haven't even seen a around this date kind of thing, or at least if I have, I can't remember it because it didn't make an impression on me, but this did. Derrick Ross, one of the good old nostriches, vibe coded something called yakback.app, and you can go to it at yakback.app.
It's live. It's a bit kludgy, but he did vibe code it, and I I don't remember how long it it took. Yakbak.app. Yak. Like, you know, like a yak. It's like a cow except not in The United States. It's yak and you yak and you yak back. What the hell is it? Voice messages on Nostr, and I can't remember the kind. Let's see if I can get the let's see if I can get the, kind of it. The kind of note. I cannot. I I can't remember the the actual note kind. It is not a kind one. It's like a kind 24873 or something like that. But what yeah. When you go to yakback.app, you there's a that you will see, like, little like notes except instead of words in the notes like on Nostr, you will see like the little voiceprints of a recording.
And there's a play button. You put on your headphones and you hit play and it's one of the people on Nostr who's just recording a voice message. You know, like, hey. What the hell is Jack back? I did one last night. You know? I was like, well, I don't know what to do with this thing. And right now, nobody is gonna know what to do with this thing and that's okay. I'm gonna I want to get into that for a sec here in a second. But I can reply to these I'm just gonna call them Yaks instead of notes, but it is on the Nostra protocol. It is fully Nostra native. In fact, it already had the ability for me to log in using my, my Git Albie extension in my browser. So I'm looking at it right now. I'm logged in. I see a whole bunch of notes except all the notes are just the little voice prints, and I can I can reply to them with another voice with another voice recording, and I can be replied to with a voice recording on that?
And at this particular point in time, only a very few Noster clients are able to read this kind, which means that you won't see these in primal. You're not gonna see them in Domus. They are look both those groups of people are looking to get this in. And if they do, you will see them. But for right now, I think Derek said that there's only three, clients that can actually view these things. And I can't remember what they are, so bad host. I get it. But yakback.app. Go go try it out. And if you're worried, then just spin up a new noster insect and test it out. And that way, you won't have to worry about, you know, like, what happens to your your insect if if it gets compromised.
I I use an extension, so I'm not worried about it. But I wanna say a couple things about about this. If something like Primal or Domus is able or if and when, and I'm pretty sure it's gonna be when, they dump this into their client as in something that will render on your screen, and you can see the voice print, and and then you can, like, hit the play button and it'll play through your phone or it'll play through your headphones on your computer at the house. That's gonna introduce a very interesting way to interact with other people in the nostril, on the nostril protocol.
Being able to record my reply instead of typing it out will be I think will be interesting, and I also think it's gonna be useful. And for there's a lot there's a lot of projects that are being vibe coded right now. And and my friend, Huddlebod has a few things to say about vibe coding, and they're not really all that good. And I I actually tend to agree that some of this vibe coded stuff, we really should be watching out because are you vibe coding the the back end? Like, are are you vibe coding the database that all this shit needs to sit in? Are you vibe coding the connections to an already existing database? It I am perfectly fine with vibe coding as proof of concept, but a deployable, maintainable product, I think vibe coding, you can start out that way. But unless you really know what you're doing as a developer, you know, having it stay around and, you know, and be useful for longer than a few months is, you know, there's a good chance that it will not survive.
And that leads me into something that I've been thinking about for a while after I sort of got into a little snit with with some guy on Noster about his attitude was that Nostra is dying, and I could get into that too, but I won't. It's not. It's it's just it's not. So I need everybody to calm down on that one. But he was saying, like, Nostra is dead because all these these stupid projects that are just they're just dead projects now. And I think one of the ones that that he brought up was Pablo f seven z's Olas, which doesn't seem to be working.
[00:45:01] Unknown:
His shipyard,
[00:45:05] David Bennett:
Nostra client doesn't seem to be working or at least the at least the feature that that that I use it for, and it hasn't worked for quite a while. And then we went back. I said, hey. Well, this is just the way development works. And I I don't even have to be a computer developer myself to to know that that's how this has to work. Projects are gonna come up, and nobody's gonna use it, and it's going to die. And I likened it to dead branches on a tree. And under normal circumstances, when trees grow up, the the the bottom as the tree grows taller and the canopy spreads out, the smaller branches that were underneath that were supporting the tree, they don't get sunlight anymore, so they die.
And they should either break off through high winds or if we had megafauna in the forest anymore, which you've heard me bitch about on several occasions, they would come by and, you know, kind of scrape against the tree and knock them off and and the the tree would be trimmed up. But the earlier branches of a tree as it grows in its growth cycle are going to be pruned off because they're not getting sunlight because the larger branches above it but they served a purpose, the initial growth of the tree. So when I see things like Olas, when I see things like Shipyard, I know there's a very good chance that it doesn't survive, but I think it's a critical I think it's critical for the development of Noster. And I think Noster is critical for the development of humanity at this point.
I mean, this you you've seen the Spotify news. And if you haven't, if you wanna listen to something with explicit material, you have to ID or facial scan your face for ID to make sure that you're of a certain age, whatever your your age of being an adult in whatever jurisdiction you're in. It uses your phone's camera, and you have to scan your face, and you have to do all kinds of stuff. And it somehow takes it through an algorithm and says, yeah. This kid's not 13. This isn't at least an 18 year old person. It doesn't matter how the algorithm works. The fact that they're actually having you scan your face so that you can listen to something explicit is why we lost her.
This is why we why we work with mesh networks. This is this is how water routes around every barrier it sees. If you don't let the water out of a dam, out of a reservoir, eventually the water will build up and it will flow over the top of the reservoir. It will negate that barrier. It will. That's the way water works. It's one of the also one of the reasons why Bruce Lee used to say be like water. Nobody can stop you if you are able to continuously flow. Right? So getting back to yak back, I think this is a really really good idea. I I love this idea.
There's only two things that I have to say about it or the only two things that that I have a concern about is is its development, its code base stable enough to last because it was vibe coded? And second, will it get enough sunlight? Is it a branch from the tree that is the nostril protocol that is like out there far enough that sunlight will strike it and continuously let it grow and it ends up becoming part of the nostril protocol that we use every day like a kind one note. It it's it's something that you should look at. Again, it's yakback. App. That's yakback.
App, yakbak.app. Go look at it. It's an interesting take. It really is. And Ray Dalio himself has an interesting take as well as he recommends 15% of Bitcoin and gold investment as US faces debt doom loop. Oh my god. He's a doomer. This is, by the way, out of CoinDesk. Bridgewater associate founder Ray Dalio is calling for investors to allocate 15% of their portfolios to Bitcoin or gold, citing heightened risk from The US's accelerating debt burden and long term currency devaluation. Quote, if you were optimizing your portfolio for the best return to risk ratio, you would have about 15% of your money in gold or Bitcoin, Dalio said on the Master Investor podcast, Sunday.
The comments mark a notable shift from his 2022 recommendation of only one to 2% in BTC, reflecting growing concerns over what Dalio calls a debt doom loop. He pointed to a projected $12,000,000,000,000 in new treasury issuance over the next year. K. Let's hold on. Let's just let's take a breath. A projected 12,000,000,000,000, with a t, dollars of new treasury issuance over the next single year. Required to service The United States' $36,700,000,000,000 national debt. A US Treasury report on Monday confirmed the trend, with the government expected to borrow $1,000,000,000,000 in the third quarter, 453,000,000,000 more than previously forecast, followed by $590,000,000,000 in the fourth quarter.
Dalio, who still favors gold, still I'm what hold on. I just skipped a hold on. If it's 453,000,000,000 in the in the third quarter and 590 in the fourth quarter, maybe they're talking about maybe CoinDesk missed a decimal. Maybe Ray Dalio meant $1,200,000,000,000 and not 12 because in my mind, we're not like, these projected numbers aren't high enough to end up as $12,000,000,000,000 over the next year. So I'm gonna let that float. Alright? I just wanted to make sure that that that I kinda caught myself there. Anyway, Dalio, who still favors gold over Bitcoin, described both as effective diversifiers in a scenario where fiat currencies lose value relative to hard assets.
Still, he maintains skepticism about the asset's role as a reserve currency, citing concerns about surveillance and the transparency of the blockchain. Governments can see who is doing what transactions on it, he said, adding that any code level vulnerabilities could undermine Bitcoin's credibility as an alternative money. While Dalio owns, quote, some Bitcoin, he framed his updated 15% recommendation as flexible. The specific ratio of BTC to gold is up to you, he said. Okay. Okay. Right. So he he changed his mind, and I honestly think that that's that's sort of a good thing here. But going from 1.2% to 15% in just a, you know, a couple of years, that's that's actually kinda huge. And so is this one. Even if we all hate Visa, Visa flags modest stablecoin uptake and calls for clear US regulation.
Guys, I thought you got that with the with the stable act and the genius act. I guess that just wasn't enough. But Vismaya v finishes us off here from decrypt. Visa has processed over $200,000,000 in stablecoin settlements, but the payment giant says that the technology is still in its infancy and awaits firmer regulatory guardrails before it can scale further. Let me pause. And they're gonna say later on in this article, $200,000,000 is a drop in the bucket to what Visa does. It's nothing. But the fact that Visa is settling in stablecoin at all, that's the bullish flag.
Oh, you know, I hate stablecoins. I know. I hear you, dude. I hear you, dude. Honestly, for me, at this point, I'm I'm looking at stablecoins as neutral. I don't need them. I'm not gonna buy them, and there's no reason for me to think of it as an investment because if anybody who thinks that stablecoins are an investment, you might as well go ahead and burn the rest of your stash buying, I don't know, Casper or some bullshit like that. Just get out of my hair because if you don't if you think that a stable coin is an investable product to make you money, you're insane.
It's that's not what stablecoins are supposed to do and that's honestly why I'm kinda treating them as neutral, at least for now. I mean, they they represent the greatest evil on the planet in so far that The United States will use it to export brand new generated debt instrumentation. And I've talked about that till I'm blue in the face, so I'm not gonna do it here. But other than that, I put them on a different table. There's there's a Bitcoin table. There's the stable coin table, and then there's everything else, which is all piles of shit and affinity scams. And that's Ethereum and Solana and all that crap. In either event, the fact that Visa is touching it, let alone $200,000,000 of flow of it, is actually a bullish flag.
Quote, it's still early, but we do see real potential CEO Ryan McInerney said on Tuesday during Visa's fiscal q two earnings call. On the one hand, 200,000,000 is a great kind of milestone. On the other hand, it's still relatively small to our overall settlement volume, end quote. Visa posted strong financials for the quarter reporting $10,170,000,000 in revenue, which is up 14% year over year. The company shares closed at $351.29 on Tuesday, which was down 1.18% for the day. Visa has been testing stablecoins through Visa Direct, focusing on real time cross border transfers where legacy settlement delays persist.
It is also building out programmability with the Visa Tokenized Asset platform to help enable banks to issue and leverage stablecoins for new types of programmable finance. That's gonna be an interesting job title. What do you do? I'm in programmable finance. We are optimistic about the US government passing more clear and pragmatic regulations, I think not just in The US, but hopefully other countries as well, McInnery said, stablecoins are cryptos that are typically pegged to the US dollar. Yeah. I know. We know. That's why you should really you might as well just go buy dollars.
Or well, but the way that works is if you're in The United States, you just get your paycheck and you just put it in your savings account and and hope that your investment beats the inflation rate. Not gonna happen. Quote, data shows that only 10 to 20% of stablecoin transactions currently represent payment activity, while the rest are tied to trading and liquidity provisioning by crypto platforms, said Zakil Suresh, CMT, founder and CEO at crypto asset manager, Bit Save, quote, however, this share is projected to rise above 50% in the next year as clear regulations emerge and businesses increasingly adopt stablecoins for cross border payments and payrolls, end quote.
The payment giant has made several strategic moves in the stablecoin space recently, including an investment in London based stablecoin infrastructure bank,
[00:57:29] Unknown:
BVNK. Oh, that's just that's so dumb.
[00:57:37] David Bennett:
B v n k. It's an upside down a for you know, it spells bank, but the a is upside down. You need better marketing. And a partnership with Bridge, which is a Stripe unit to offer stablecoin services in Latin America. Quote, there's a lot of activity and discussion about stablecoin in the space right now, McInnery said. Others view the space as still nascent compared to Visa's existing scale. Quote, Visa's 5 to $7,000,000,000,000 daily volume. I had no idea that they were doing 5 to $7,000,000,000,000 in daily volume, and it dwarfs stablecoins 20 to $30,000,000,000 daily transactions.
However, with 250,000,000,000 in stablecoin issuance, the space is still in its early ages. Similar to ecommerce in the late nineties, Jagdesh Panjia, founder of BlockOn Ventures, told the crypt, quote, as digital assets become more regulated, Visa may witness massive adoption in the next decade. Yeah. You better hope so, buddy, because your business model was dying. Well, okay. $57,000,000,000,000 a day, not exactly dying, but I've seen it happen. American Express used to be the shit, dude. Not not so much. Have you heard of Diner's Club?
Yeah. I'm just saying that all of this is gonna go away. And the only way Visa and Master and Earlier this month, president Trump's did sign the Genius Act. While the Genius Act provides clarity for businesses in The US global payment processors like Visa, they'll also need to stay watchful for regulatory developments in other countries, and I think that that's what they're saying about. They they need more regulatory clarity. We've got a lot in The United States now, but the European Union still far, far, far behind the curve. And that is it for the show for the day. I am terribly sorry that I did not bring you a show yesterday. Couldn't be helped.
It just was what it was. I will see you on the other side. This has been Bitcoin and and I am your host, David Bennett. Bennett. I hope you enjoyed today's episode and hope to see you again real soon. Have a great day.
It is 07:49AM Pacific Daylight Time. It is the July, or rather the last day of the 2025, and this is episode eleven thirty seven of Bitcoin, and we're just gonna run right into it. Ezra Rivera has this one from Cointelegraph saying that JPMorgan is going to allow crypto purchases with Coinbase. It's probably a deal made in hell, but we'll get into it. JPMorgan Chase has indeed partnered with Coinbase to introduce crypto integrations to its customers, a step in bridging traditional finance with digital assets. Coinbase announced on Wednesday that Chase credit card holders, yes, indeed, this is a deal made in hell, will be able to use their cards to buy crypto on Coinbase starting this fall. And in addition, Coinbase said JPMorgan's customers will be able to redeem their Chase Ultimate reward points for USDC.
That's Circle Stablecoin. Coinbase said that this will be the first major rewards program redeemable for crypto, quote, for the first time, points from a major credit card rewards program will be redeemable for crypto rewards. I gotta pause because that's freaking brilliant, dude. And the reason I say that is that, like, my wife has all kinds of airline miles. Can't use them. They're they're just worthless crap at this point. And I've heard many, many, many stories of people saying that their other other non airline credit card based stuff, that their points aren't really getting them anything. But now it looks like this deal that's been made with the devil, it might actually have some utility for some people. I'm I'm not a fan of Circle, but I'm also not a fan of having, like, look you know, you look at your your credit card bill or whatever and you've got, like, 57,000 points in flight miles and you can't even get a ticket to freaking Dallas one way. Anyway, Coinbase also said that Chase card users can link their accounts to Coinbase directly and the exchange said that this feature which is scheduled for next year will give users easier ways to buy crypto.
I wish that I hate that word. The new integration follows a broader push by JPMorgan into digital assets, probably to Jamie Dimon's chagrin. But on July 16, Jamie Dimon did reveal in an earnings call that the company had plans to be involved in stablecoins. The move was driven by competition with other fintech companies that are trying to replicate traditional financial systems, quote, we're gonna be involved in both JPMorgan deposit coin and stablecoins to understand it and be good at it. Okay. Alright. That's a hell of a sentence. And apart from stablecoins, JPMorgan is reportedly looking to offer direct loans against Bitcoin and Shitcoin number one. On July 22, the Financial Times cited anonymous sources who reported the bank's exploration if of crypto backed loans.
And the report said that the bank may start lending against crypto by 2026. However, the plans are subject to fees or rather to change. Sorry. I was looking to something else where it says fees. Anyway, e even though JPMorgan may be eyeing crypto loans, decentralized finance players still have advantages over the bank and other traditional financial players on crypto loans according to one inch cofounder Sergej Coons. On Wednesday, Coons told Cointelegraph that DeFi strength lies in offering a wider range of accepted loan collateral. He added that market driven optimization in De Fi allows users to enjoy lower fees. So ladies and gentlemen, boys and girls, what have we learned? Well, everybody knows that credit card and airline miles and points and stuff are basically turning into worthless garbage, and now they're going to let you convert that into an actual stable coin.
We've also learned that JP Morgan, even though Jamie Dimon hates Bitcoin and everything crypto, has no choice but to get into this game and they have actually partnered with the one demon in the room that is the the big boy which is coinbase. It's not it's not good, but it's inevitable. And this is the change that that everybody is seeing. And I am seeing people admit about all this type of thing. Like I saw a note earlier today on Nasr, it said something about Bitcoin losing its decentralization and, I don't know, some some other things about it. And I hear people crying about this, and this is, I don't want to say inevitable, but it is, kind of. But I'm not I I'm just not worried because Bitcoin itself isn't centralized.
By its very nature, its very architecture, it's not. What we do with the tool doesn't determine that the tool changes. A hammer is still a hammer, a wrench is still a wrench. You can fix a car or you can build a house or you can use both of them to kill the shit out of somebody. It doesn't really matter. But I honestly, this is probably going to be a very good deal for both Coinbase and JPMorgan. So we'll have to see. But late you know, meanwhile, Michael Saylor's strategy has raised $2,500,000,000 in a record stock offering to yet buy more Bitcoin from Decrypt and Vince De Aquino. Michael Saylor's strategy is yet again, one more time, pulled off the largest crypto linked equity raise this year, closing a $2,500,000,000 offering on Tuesday through a deal involving STRC, the newly created class of perpetual preferred stock that pays floating monthly dividends starting at 9%.
Wow. That's almost double digits. That's almost like a but never mind. I won't get into it. It's just another flavor of lollipop. But proceeds were already used. They immediately bought 21,021 Bitcoin at an average price of 117,256, bringing strategies total holdings to 628,900 and and no. Sorry. $6.28 $7.91 Bitcoin, which is now worth more than $74,000,000,000 at current prices. Once listed, STRC would be the first US exchange listed perpetual secured security issued by a Bitcoin Treasury company to pay monthly dividends, the company said in a statement. The STRC sale marked strategy's largest largest capital raise to date, surpassing its $800,000,000 convertible note offering from June just last year.
It also follows the March launch of STRF or Strife, I think, which Saylor initially described as their crown jewel backed by a $2,100,000,000 at the market program. Now unlike Strife, the new STRC offering is aimed more squarely at retail income investors. That's just Joe on the street. Alright? That's what retail is. With floating monthly payouts with no maturity. It never matures. It's always there. Yield products such as this offer exposure without direct spot spot market volatility, Vincent Liu, chief investment officer at Kronos Research, told Decrypt, marking the progress among, quote, structured capital flows that deepen Bitcoin liquidity without pressuring the order book.
Other observers say the rate shows strong demand for financial instrumentation that package Bitcoin exposure in less volatile, more accessible forms. Yeah. Because nobody has the cojones to hold the raw asset. It that people are just scared. They just get scared. Quote, institutions want Bitcoin exposure, but need a package like traditional investments, Ryan Yoon, senior analyst at Tiger Research, told Decrypt. STRC works because it pays dividends like a bond while giving indirect Bitcoin exposure, solving the problem for pension funds and insurers who can't buy Bitcoin directly.
I'm pausing to say, I think that's going to change. I I think that pension funds and people like insurers and those types of institutions that right at this moment cannot hold the underlying asset, I guarantee you that's gonna change. They will be able to and they're going to. Anyway, investors appear to be treating it as both a yield product that fits their compliance requirements and a way to get crypto exposure without the operational headaches of holding Bitcoin themselves. The corporate Bitcoin treasury playbook, as espoused by strategy, looks simple, but it isn't easy to copy. You need three things: enough Bitcoin to be credible, access to Wall Street financing tools, and a stock price that trades above the value of your Bitcoin holdings.
Most wannabe digital asset treasury companies lack all three, Yoon argued, because strategy got there first and then scaled. Newer entrants, however, would struggle because they don't have the credibility or financing access for the model to really scale. These companies need a brand beyond just hoping the price goes up, Yoon said. Now remember, that's the end of the article, remember that nobody knew what MicroStrategy was four years ago. Nobody in this space ever said a word about it until Michael Saylor started buying Bitcoin. And since he was basically first to the plate, we started looking at what MicroStrategy does.
The community, the Bitcoin community kind of helped Michael Saylor brand MicroStrategy.
[00:10:49] Unknown:
We helped brand. Worldwide brand.
[00:10:53] David Bennett:
Now, of course, it's it's changed the strategy, but it wasn't that he had a brand because he had a killer product. Nobody really cares about unless you're in business, you really don't care about business intelligence. Right? It's not something that's not like Apple branding or or Microsoft branding or something like where everybody on the street knows the brand. Michael Saylor built the brand on the back of Bitcoin and the people that supported Michael Saylor. So he's got the brand now, and Meta Planet may actually be able to pull that off. But I told you last during the last show, this shit's losing steam and the new entrants are gonna become less and less and less successful.
And I'll prove it to you later on in the show, specifically the second half. But before we get there, the SEC has approved in kind redemptions for all spot Bitcoin ETFs. Helene Braun from CoinDesk. Let me get up here to the top. And the US Securities and Exchange Commission has approved the use of in kind creation and redemption processes for all spot Bitcoin and Shitcoin number one exchange traded funds, marking a significant shift in the regulators' approach to digital assets under new leadership. Great. This is awesome. The decision allows authorized participants, which means large institutional investors who facilitate ETF liquidity, to create and redeem ETF shares directly into Bitcoin rather than having to use cash.
The mechanism is widely seen as more efficient and secure as it lets authorized participants to closely track investor demand and adjust ETF share supply in real time without the need to convert assets back and forth into fiat currency. This marks the first SEC's major crypto friendly policy move since Paul Atkins was named chair of the agency earlier this year. Atkins, a former SEC commissioner known for his market friendly views, has long advocated for a more open regulatory approach towards digital assets. Quote, it's a new day at the SEC, said Atkins.
A key priority of my chairmanship is developing a fit for purpose regulatory framework for crypto asset markets, and I am pleased that the commission approved these orders permitting in kind creations and redemptions for a host of crypto asset ETPs. Investors will benefit from these approvals as they will make these products less costly and more efficient. The shift comes after BlackRock filed a request back in January to allow in kind transactions for its iShares Bitcoin Trust and other issuers including Fidelity and ARK Invest quickly followed. So it happened.
Now when this thing goes live, I don't know. It's probably not today. But it simply means that I could take Bitcoin out of my hard my cold wallet, which I'm not going to do, and I can send it directly directly to the iBit ETF, but I lose custody. Alright? Now, there's there's a couple of reasons why this is good. At least one of them is the fact that Fannie Mae and Freddie Mac are going to have to start looking at Bitcoin on people's balance sheets as as credit worthiness. But the as it's written right now, the the way that that's gonna work is that you're going to have to actually pony up that But But I don't wanna get into into the weeds on that one. I'm just saying that this is now a a hardcore mechanism for people that have Bitcoin on cold wallets to be able to say, well, here's my Bitcoin. It's over there on iBit. Here's the transaction.
It's being held by the third party. Boom. So it may make your stomach kind of churn a little bit, but, you know, it's probably not going to be as bad as we think. It it just it really depends on your attitude towards how you wanna handle your Bitcoin. Nobody's gonna force you to do this. So just keep that in mind while you butter your bread with some great ghee. The Circle p is open for business. Circle p is where I bring plebs like you that have goods and services for sale to plebs like you who might want to buy said said goods and services for sale that are made by plebs just like you. And great ghee makes wow.
He makes the best ghee. And if you don't know what ghee is, it's clarified butter. It becomes very, very shelf stable at room temperature because of that, but it changes the flavor profile. And the way it works is that it basically makes the protein the milk solids and milk proteins fall out of the actual milk fat. And that's what butter is mostly fat, but it's not all fat. And if you keep butter at room temperature for too long, it will definitely go rancid. You don't want that. So if and and by the way, the ghee has a different flavor profile. It's it's heavily used in Indian cooking, but you can use it anywhere that you use butter. And it's got a nice depending on how you handle it, it has a sometimes a deeper flavor.
Great ghee. I I he sent me a jar of it and we love this stuff. You can get an eight ounce grass fed pasture raised jar of ghee for 24,997 sats and make sure that you tell Great Ghee that you heard about it here on the Bitcoin and podcast by using the code Bitcoin and I think that there's a small discount. I'm not sure, but make sure that if there is that you don't miss out. Plus, if Great Guy doesn't know that I was able to make a sale for him, Great Guy won't be able to value for value me on the other end and send me satoshis for whatever he thinks that sale was worth. Now the big news is that the Bitcoin Mixer Samurai founders have pled guilty in the crypto privacy case.
This makes me sad. Matt DeSalvo from Decrypt tells us what's implied here. The founders of Bitcoin mixer, Samurai Wallet, plead guilty on Wednesday, federal court documents show, in a case that has rattled privacy advocacy groups. Both William Lonergan Hill and Keone Rodriguez will change their pleas in a New York court according to the filing in US District Court for the Southern District Court of New York. Feds arrested Hill and Rodriguez last year and then shut down the Bitcoin mixing platform. The Department of Justice alleged that the app was an unlicensed money transmit transmitting business used by criminals.
[00:18:30] Unknown:
So there's not much more to say here.
[00:18:33] David Bennett:
Lowell Elites is is going to probably end up with a very in-depth and detailed account on what the implications are, but I personally think that this does not help the tornado cash guys. I I and I honestly do not know why why these guys changed their plea. That's hopefully one of the things that we'll be able to uncover as a little bit more time goes by. But first, we gotta run the numbers. West Texas Intermediate Oil is down one and a quarter point to $69 and a dime. Brent North Sea is down almost a full point. Natural gas is down point 3% to just over $3 per thousand cubic feet, and gasoline is down a row of sticks to $2.24 per gallon. All your shiny metal rocks are not doing well. They're everything's in the a lot of things are in the red today.
Gold is down point 1% to 33.49 in three dimes. Silver is down over three full points. Platinum is down five and a half. This is weird. Copper, according to cnbc.com, is down 21.92%. Whoever was holding copper just got rugged. Wow. 21.92% to the downside on copper. If that's not a mistake, if this is a real number, somebody got wiped wiped out. Actually, a lot of people got wiped out on that. That's not good. Palladium is down 4.18%. Ag is mostly in the red today. Biggest winner is chocolate, 3.6% to the upside. Biggest loser appears to be lumber, which is down point 94%.
Meanwhile, live cattle is down point 7%. Lean hogs are up point 6%. Feeder cattle are down a quarter. Meanwhile, the Dow is running in the red, but mostly just sideways. S and P is up a third, Nasdaq is up a third, and the S and P Mini is down a half of a point. Bitcoin chilling out at a $117,880 per coin, that is a $2,350,000,000,000 market cap, and you can get 35.7 ounces of shiny metal rocks with your one Bitcoin of which there are 19,899,672.7 of. And average fees per block are fairly low, And we do have quite a bit of blocks in mempools around the world, probably about 28 blocks carrying 40,000 unconfirmed transactions waiting to clear at high priority rates of 2 Satoshis per v byte. Low priority is going to get you in at one.
We've had a drop in hash rate, not terrible, but 896.9 exahashes per second, and you can do with that what you will. From Arizona man, which was the day before yesterday's episode of Bitcoin and I got Turkey. Thousand says welcome back. Jubjub with a thousand says glad you had a great trip. Happy to have your podcast back in my feed. Digital Panhandler with a thousand says nothing. And Psyduck with seven thirty six says Psyduck. Bitcoin Sandy with 500 sat says always great. That's the weather report. Welcome to part two of the news that you can use from Atlas twenty one. As promised, here's the article about Bitcoin treasury companies losing steam. I'm not talking about all Bitcoin treasury companies here. We I kind of went through that. Michael Saylor was, you know, the first and then you got Meta Planet and then you got you had a good handful of of very large entities that are considered pure play Bitcoin treasury companies and we can say what we want about them but they're probably not gonna go away.
However, do you may or may not remember this. Back I can't remember when this was. I wanna say this was around 2017, 2018. I think we were coming off of the heels of the the split between Bitcoin and what became the Bitcoin Cash, which then got split itself and became BSV. There was an I think it was an iced tea company. Yeah, they made iced tea and they were a failing iced tea making company and they said that they converted over into bitcoin mining and their stock price went through the roof. And then it quickly came back down because it was kind of all bullshit. And then I remember something I Kodak, I don't know, made a deal with some miners to put the the their brand on these particular miners and that was a failure.
It's Bitcoin causes affinity plays to occur and treasury companies, Bitcoin treasury companies, whether pure play or not, are causing another kind of affinity scam, for lack of a better term. But the newer entrants are finding it very, very difficult to get any traction, like, at all. So again, from Atlas twenty one, we have this one. More than half of the new Bitcoin Treasury companies have lost over 50% of their value. So it's no longer a slam dunk just to say, hey man, we're buying Bitcoin and putting it on the balance sheet. Because according to data from Bitbo, all 43 companies that added Bitcoin to their treasury in 2025 and are still publicly listed are reporting negative performance compared to the highs reached earlier this year.
The median drop from the annual highs among Bitcoin Treasury companies stands at a negative 52.4%. This means that more than half of the companies have lost over half of their market value in just a few months. 23 out of 43 monitored companies representing 53% of the sample have posted losses exceeding 50% from their 2025 peaks. An example of this decline is Cantor Equity Partners. The company peaked at $59.75 per share on May 1 right after announcing their corporate merger that led to the creation of the company Twenty One, the entity led by Bitfinex, Tether, and Jack Mallers.
Today, Kantor Equity Partners is trading at $28.31 per share on Nasdaq, marking a 52% drop from its yearly high. The direct correlation between the price of Bitcoin and the stock performance of these companies has proven to amplify both gains and losses. I'm not sure just how much I put credence in that last sentence about amplification of gains and losses. I I just I think what's what's going on here is that
[00:26:16] Unknown:
people are getting bored as people do.
[00:26:21] David Bennett:
They're getting bored with the announcement of yet another treasury company. They're getting bored with the announcement of yet, you know, a a major player like Jack Mallers entering the market even though it's gonna be probably a big deal. But everybody did make a huge deal out of the Cantor Equity Partners being part of the 21 play, and yet they've lost quite a bit of value on their stock price for their shareholders. And that's not going to be that's not that's not a good look. And I'm not talking about for Bitcoin. I'm talking about for Cantor Equity Partners because their partners some of the partners are probably not happy and there's other stakeholders involved and they're probably not happy about this shit either.
I'm just saying, look, if you flood the market with a single product, even if it's from 50 different companies, and you've got like like I was saying the day before yesterday, you got 50 lollipop makers and all of them seem to have like four or five flavors. I don't think we need that many lollipops. And I think people are getting bored with lollipops. They're gonna want gummy bears next or Swedish fish. What just go to the go to a a big ass one of those big ass candy stores that you find in the mall and just pick one. Right?
We're like this. I mean, hairless apes falling out of trees and eating mushrooms to gain some kind of intelligence apparently always results in somebody getting bored to tears. And I think that that's really what's going on here. The price is kinda stagnant. You know, we're we're in this in this range. We keep getting nothing but good news to keep trading in the range. We keep getting nothing but physical Bitcoin being taken off of the market by all these companies that want to be treasury companies and we're still trading in the same range. It just goes on and on and on and on and on. And at one point or another, these bottom tier companies are probably going to end up selling their bitcoin and you're going to be looking at not havoc and not a holocaust, but you are going to see negative price pressure.
Because some of these guys got into this as a hail Mary and for half of them it seems like it's not working so just be aware that shit's on the horizon and speaking of 2121 boost Bitcoin Treasury total to $5,100,000,000 with help from Tether Bitcoin Treasury twenty one Capital has increased the amount of Bitcoin it will hold when it begins trading after adding about 5,800 BTC from Tether, the company said on Tuesday, potentially making it the third largest corporate holder of the asset. The firm, the product of a joint effort by Tether, Bitfinex, Kantor, Fitzgerald, that's we were just talking about, and SoftBank, said that it will have 43,500 Bitcoin. That's about $5,100,000,000 at the current prices.
Quote, with the partners, capital, team, and structure we've assembled, we feel like we can do anything, and we're just getting started, twenty one CEO and cofounder Jack Mallor said in a statement. The company will join a rapidly growing list of firms that are making accumulation of the asset their primary focus. It had planned to start with a treasury of more than 42,000 BTC. Austin, Texas based twenty one will hold more Bitcoin than any other corporate entity except for strategy and Bitcoin miner Mara Holdings. Bitcoin treasuries are firms that hold BTC and allow more traditional investors to gain investors to gain exposure to the leading cryptocurrency via shares that trade on stock exchanges. Let me pause just to to clarify.
It's an ETF. Not exactly. It's a different structure, but it gives retail the same ability to expose themselves to the price of bitcoin without actually owning it why this is a thing is beyond my comprehension but it is right and nothing stops that The I I wish I had a very good explanation as to what it is about human psychology that they want to be exposed to the best asset on the face of the planet, but they don't actually wanna hold it. I know for some institutions, like the aforementioned, like, four zero one k's and pension funds and insurers and stuff like that, they can't legally do that. But I'm still dead set in believing that that will change.
But will they? Even if they could, will they? Would they rather have somebody else do the heavy lifting for them when there's no heavy lifting involved. And that's where the logic of this entire thing fails for me. I don't get it. It's not that hard. And for large institutions with very large amounts of capital invested in the underlying asset itself, there are solutions to make you feel nice, safe, and secure. And, hell, you can even involve an external third party like Unchained to help you set up a multisig wallet that's like I don't know three of five you know or five of seven or something like that where Unchained holds a key and the board of directors of whatever company that wants to actually hold the underlying asset, they hold keys and they've all got to collaborate together if they want to move any amount of Bitcoin whatsoever.
And like let's say it's a three of five multisig like Unchained or either three of the people that hold keys in the company need to get together and say, we're going to do this, we're going to move it to this wallet or we're going to sell it. We're going to do whatever it is we're going to do. They all have to agree and they agree by signing that transaction in all three of them, at least three of them out of the five that hold the keys need to be able to do that in order for the transaction to go through. 00Three:3five2000Three:5five22 Speaker one There's plenty of safeguards here.
I mean, plenty of safeguards. There's no reason whatsoever that you have to use something like I bit or BlackRock the iBit BlackRock Bitcoin spot ETF it's not necessary and yet with all the education that's out there with all the harping that Bitcoiners do with all the emails and the letters sent, you should self custody. Nothing has told Michael Saylor that he should actually or has has worked to get Michael Saylor to take custody of his own Bitcoin. Even he uses Coinbase, as far as we know, to custody the Bitcoin for him. And he knows he has access to to the finest Bitcoiners that have been around the longest. He can call any one of them and they would be more than happy to help. And as far as I know, he hasn't called a soul to say, let's convert this to a multisig hold.
I don't know why these people do it. But, well, let's go on with the story. 21 is a new kind of public company built on Bitcoin backed with proof and driven by a vision to reshape the global financial system, said Mallers. Quote, we're not here to beat the existing system. We're here to build a new one, end quote. Twenty one is launching through a planned SPAC merger with Cantor Equity Partners, the same people that lost half the value on their stock, which it's a black it's a blank check company affiliated with the financial services firm Cantor Fitzgerald at large.
It trades on the Nasdaq under the ticker symbol CEP, and shares of CEP closed Tuesday down another 4.5%. When 21 launches, the company will trade under the ticker XXI. Okay. So that's the end of the story. Oh, wait. No. It's not the end of the story. Hold on. There's one more. The firms behind the new treasury are a mix of traditional financial giants and crypto companies. Tether is the biggest issuer of stablecoins, while SoftBank is a Japanese multinational investment holding company. Bitfinex is a crypto exchange, and Cantor Fitzgerald is a Wall Street firm, previously headed up by US president Donald Trump ally and US Secretary Of Commerce Howard Lutnick.
So there's the end of the article. I keep hearing this, and I even had one of, you know, one of my friends on Noster wrote me this morning while I was waiting in chairs,
[00:35:36] Unknown:
in the hospital because my wife had an appointment. And
[00:35:40] David Bennett:
I get this I get this note saying, hey. Do you know when twenty one's gonna launch? Because I'd like to get in on that IPO. I'm like, you know, okay. I'm I'm not gonna say anything about that at all. I I honestly think you should just buy Bitcoin and hold Bitcoin, but you do you. But here's the thing. Nobody knows when the fuck this thing's supposed to launch. I don't I mean, I have read story after story when it when it launches when it launches. It's gonna launch soon, you know, soon, t m. When? What's the day? Right? What's the day? And if you can't give me the day, then that might actually be because there are certain hoops that they've got to run through, which I know that they do, and that there's no way to say when on an exact day the IPO is actually going to happen. And that's okay.
It's just when story after story after story doesn't say why they can't give a correct date, that just I don't know. It just makes it feel like hype, and I hate I just don't like the thought of Jack Mallers being involved in a hype machine. I I don't think it's I I don't know, man. I'm just gonna say it straight out. I don't think it's good for anybody's reputation. I think hype is is, well, it's hype. I don't think it's a positive in the human experience. But there's also one other thing people need to understand about IPOs.
[00:37:09] Unknown:
Are you a credited investor?
[00:37:12] David Bennett:
Do you have a million dollars in the bank? If you don't, then the chances of you getting in on any initial public offering by any publicly trade soon to be publicly traded company is small to none. How do I know? Well, there was a company, and I can't remember the name of it. And I knew exactly when they were gonna launch because they it was reported, said, hey. We've we've cleared all the hurdles and the SEC and everything's fine. Federal Trade Commission's fine. We're good to go. I don't know. Let's pick a date. October 16. I think it was, like, '19 or 2007 or something like that, and I can't remember the name of the company. So at the time, I'm still kind of in I'm still in the stock market.
I still think this is the way to go. Hadn't heard about Bitcoin. Pick up the phone, call my broker, and say, hey. I need you to, arrange where I can be part of this IPO. I wanna get some shares of this company when it launches. Here's the ticker symbol. Here's the company. Look into it. He goes, woah. Woah. Woah. Woah. Woah. Stop. Stop. Stop. And I go, what? And he goes, no you're not getting in on that IPO like why not he's like you're not accredited investor dude if you you don't have a million dollars which is apparently one of the things that they test for and I've I'm holding up my hands with quotes it's like this arbitrary almost invisible barrier that as long as you've got a million dollars that you might be able to be considered a credited investor.
Right? And if you don't have that, you're not participating in the IPO, and that was the second when I realized just how rigged the system is. So if you guys are looking to get in on 21, good luck, and you may do it, you know, but honestly don't get your hopes up. And we're gonna have to we're gonna it's gonna take a lot of work for us to figure out exactly when twenty one is gonna go public because I haven't even seen a around this date kind of thing, or at least if I have, I can't remember it because it didn't make an impression on me, but this did. Derrick Ross, one of the good old nostriches, vibe coded something called yakback.app, and you can go to it at yakback.app.
It's live. It's a bit kludgy, but he did vibe code it, and I I don't remember how long it it took. Yakbak.app. Yak. Like, you know, like a yak. It's like a cow except not in The United States. It's yak and you yak and you yak back. What the hell is it? Voice messages on Nostr, and I can't remember the kind. Let's see if I can get the let's see if I can get the, kind of it. The kind of note. I cannot. I I can't remember the the actual note kind. It is not a kind one. It's like a kind 24873 or something like that. But what yeah. When you go to yakback.app, you there's a that you will see, like, little like notes except instead of words in the notes like on Nostr, you will see like the little voiceprints of a recording.
And there's a play button. You put on your headphones and you hit play and it's one of the people on Nostr who's just recording a voice message. You know, like, hey. What the hell is Jack back? I did one last night. You know? I was like, well, I don't know what to do with this thing. And right now, nobody is gonna know what to do with this thing and that's okay. I'm gonna I want to get into that for a sec here in a second. But I can reply to these I'm just gonna call them Yaks instead of notes, but it is on the Nostra protocol. It is fully Nostra native. In fact, it already had the ability for me to log in using my, my Git Albie extension in my browser. So I'm looking at it right now. I'm logged in. I see a whole bunch of notes except all the notes are just the little voice prints, and I can I can reply to them with another voice with another voice recording, and I can be replied to with a voice recording on that?
And at this particular point in time, only a very few Noster clients are able to read this kind, which means that you won't see these in primal. You're not gonna see them in Domus. They are look both those groups of people are looking to get this in. And if they do, you will see them. But for right now, I think Derek said that there's only three, clients that can actually view these things. And I can't remember what they are, so bad host. I get it. But yakback.app. Go go try it out. And if you're worried, then just spin up a new noster insect and test it out. And that way, you won't have to worry about, you know, like, what happens to your your insect if if it gets compromised.
I I use an extension, so I'm not worried about it. But I wanna say a couple things about about this. If something like Primal or Domus is able or if and when, and I'm pretty sure it's gonna be when, they dump this into their client as in something that will render on your screen, and you can see the voice print, and and then you can, like, hit the play button and it'll play through your phone or it'll play through your headphones on your computer at the house. That's gonna introduce a very interesting way to interact with other people in the nostril, on the nostril protocol.
Being able to record my reply instead of typing it out will be I think will be interesting, and I also think it's gonna be useful. And for there's a lot there's a lot of projects that are being vibe coded right now. And and my friend, Huddlebod has a few things to say about vibe coding, and they're not really all that good. And I I actually tend to agree that some of this vibe coded stuff, we really should be watching out because are you vibe coding the the back end? Like, are are you vibe coding the database that all this shit needs to sit in? Are you vibe coding the connections to an already existing database? It I am perfectly fine with vibe coding as proof of concept, but a deployable, maintainable product, I think vibe coding, you can start out that way. But unless you really know what you're doing as a developer, you know, having it stay around and, you know, and be useful for longer than a few months is, you know, there's a good chance that it will not survive.
And that leads me into something that I've been thinking about for a while after I sort of got into a little snit with with some guy on Noster about his attitude was that Nostra is dying, and I could get into that too, but I won't. It's not. It's it's just it's not. So I need everybody to calm down on that one. But he was saying, like, Nostra is dead because all these these stupid projects that are just they're just dead projects now. And I think one of the ones that that he brought up was Pablo f seven z's Olas, which doesn't seem to be working.
[00:45:01] Unknown:
His shipyard,
[00:45:05] David Bennett:
Nostra client doesn't seem to be working or at least the at least the feature that that that I use it for, and it hasn't worked for quite a while. And then we went back. I said, hey. Well, this is just the way development works. And I I don't even have to be a computer developer myself to to know that that's how this has to work. Projects are gonna come up, and nobody's gonna use it, and it's going to die. And I likened it to dead branches on a tree. And under normal circumstances, when trees grow up, the the the bottom as the tree grows taller and the canopy spreads out, the smaller branches that were underneath that were supporting the tree, they don't get sunlight anymore, so they die.
And they should either break off through high winds or if we had megafauna in the forest anymore, which you've heard me bitch about on several occasions, they would come by and, you know, kind of scrape against the tree and knock them off and and the the tree would be trimmed up. But the earlier branches of a tree as it grows in its growth cycle are going to be pruned off because they're not getting sunlight because the larger branches above it but they served a purpose, the initial growth of the tree. So when I see things like Olas, when I see things like Shipyard, I know there's a very good chance that it doesn't survive, but I think it's a critical I think it's critical for the development of Noster. And I think Noster is critical for the development of humanity at this point.
I mean, this you you've seen the Spotify news. And if you haven't, if you wanna listen to something with explicit material, you have to ID or facial scan your face for ID to make sure that you're of a certain age, whatever your your age of being an adult in whatever jurisdiction you're in. It uses your phone's camera, and you have to scan your face, and you have to do all kinds of stuff. And it somehow takes it through an algorithm and says, yeah. This kid's not 13. This isn't at least an 18 year old person. It doesn't matter how the algorithm works. The fact that they're actually having you scan your face so that you can listen to something explicit is why we lost her.
This is why we why we work with mesh networks. This is this is how water routes around every barrier it sees. If you don't let the water out of a dam, out of a reservoir, eventually the water will build up and it will flow over the top of the reservoir. It will negate that barrier. It will. That's the way water works. It's one of the also one of the reasons why Bruce Lee used to say be like water. Nobody can stop you if you are able to continuously flow. Right? So getting back to yak back, I think this is a really really good idea. I I love this idea.
There's only two things that I have to say about it or the only two things that that I have a concern about is is its development, its code base stable enough to last because it was vibe coded? And second, will it get enough sunlight? Is it a branch from the tree that is the nostril protocol that is like out there far enough that sunlight will strike it and continuously let it grow and it ends up becoming part of the nostril protocol that we use every day like a kind one note. It it's it's something that you should look at. Again, it's yakback. App. That's yakback.
App, yakbak.app. Go look at it. It's an interesting take. It really is. And Ray Dalio himself has an interesting take as well as he recommends 15% of Bitcoin and gold investment as US faces debt doom loop. Oh my god. He's a doomer. This is, by the way, out of CoinDesk. Bridgewater associate founder Ray Dalio is calling for investors to allocate 15% of their portfolios to Bitcoin or gold, citing heightened risk from The US's accelerating debt burden and long term currency devaluation. Quote, if you were optimizing your portfolio for the best return to risk ratio, you would have about 15% of your money in gold or Bitcoin, Dalio said on the Master Investor podcast, Sunday.
The comments mark a notable shift from his 2022 recommendation of only one to 2% in BTC, reflecting growing concerns over what Dalio calls a debt doom loop. He pointed to a projected $12,000,000,000,000 in new treasury issuance over the next year. K. Let's hold on. Let's just let's take a breath. A projected 12,000,000,000,000, with a t, dollars of new treasury issuance over the next single year. Required to service The United States' $36,700,000,000,000 national debt. A US Treasury report on Monday confirmed the trend, with the government expected to borrow $1,000,000,000,000 in the third quarter, 453,000,000,000 more than previously forecast, followed by $590,000,000,000 in the fourth quarter.
Dalio, who still favors gold, still I'm what hold on. I just skipped a hold on. If it's 453,000,000,000 in the in the third quarter and 590 in the fourth quarter, maybe they're talking about maybe CoinDesk missed a decimal. Maybe Ray Dalio meant $1,200,000,000,000 and not 12 because in my mind, we're not like, these projected numbers aren't high enough to end up as $12,000,000,000,000 over the next year. So I'm gonna let that float. Alright? I just wanted to make sure that that that I kinda caught myself there. Anyway, Dalio, who still favors gold over Bitcoin, described both as effective diversifiers in a scenario where fiat currencies lose value relative to hard assets.
Still, he maintains skepticism about the asset's role as a reserve currency, citing concerns about surveillance and the transparency of the blockchain. Governments can see who is doing what transactions on it, he said, adding that any code level vulnerabilities could undermine Bitcoin's credibility as an alternative money. While Dalio owns, quote, some Bitcoin, he framed his updated 15% recommendation as flexible. The specific ratio of BTC to gold is up to you, he said. Okay. Okay. Right. So he he changed his mind, and I honestly think that that's that's sort of a good thing here. But going from 1.2% to 15% in just a, you know, a couple of years, that's that's actually kinda huge. And so is this one. Even if we all hate Visa, Visa flags modest stablecoin uptake and calls for clear US regulation.
Guys, I thought you got that with the with the stable act and the genius act. I guess that just wasn't enough. But Vismaya v finishes us off here from decrypt. Visa has processed over $200,000,000 in stablecoin settlements, but the payment giant says that the technology is still in its infancy and awaits firmer regulatory guardrails before it can scale further. Let me pause. And they're gonna say later on in this article, $200,000,000 is a drop in the bucket to what Visa does. It's nothing. But the fact that Visa is settling in stablecoin at all, that's the bullish flag.
Oh, you know, I hate stablecoins. I know. I hear you, dude. I hear you, dude. Honestly, for me, at this point, I'm I'm looking at stablecoins as neutral. I don't need them. I'm not gonna buy them, and there's no reason for me to think of it as an investment because if anybody who thinks that stablecoins are an investment, you might as well go ahead and burn the rest of your stash buying, I don't know, Casper or some bullshit like that. Just get out of my hair because if you don't if you think that a stable coin is an investable product to make you money, you're insane.
It's that's not what stablecoins are supposed to do and that's honestly why I'm kinda treating them as neutral, at least for now. I mean, they they represent the greatest evil on the planet in so far that The United States will use it to export brand new generated debt instrumentation. And I've talked about that till I'm blue in the face, so I'm not gonna do it here. But other than that, I put them on a different table. There's there's a Bitcoin table. There's the stable coin table, and then there's everything else, which is all piles of shit and affinity scams. And that's Ethereum and Solana and all that crap. In either event, the fact that Visa is touching it, let alone $200,000,000 of flow of it, is actually a bullish flag.
Quote, it's still early, but we do see real potential CEO Ryan McInerney said on Tuesday during Visa's fiscal q two earnings call. On the one hand, 200,000,000 is a great kind of milestone. On the other hand, it's still relatively small to our overall settlement volume, end quote. Visa posted strong financials for the quarter reporting $10,170,000,000 in revenue, which is up 14% year over year. The company shares closed at $351.29 on Tuesday, which was down 1.18% for the day. Visa has been testing stablecoins through Visa Direct, focusing on real time cross border transfers where legacy settlement delays persist.
It is also building out programmability with the Visa Tokenized Asset platform to help enable banks to issue and leverage stablecoins for new types of programmable finance. That's gonna be an interesting job title. What do you do? I'm in programmable finance. We are optimistic about the US government passing more clear and pragmatic regulations, I think not just in The US, but hopefully other countries as well, McInnery said, stablecoins are cryptos that are typically pegged to the US dollar. Yeah. I know. We know. That's why you should really you might as well just go buy dollars.
Or well, but the way that works is if you're in The United States, you just get your paycheck and you just put it in your savings account and and hope that your investment beats the inflation rate. Not gonna happen. Quote, data shows that only 10 to 20% of stablecoin transactions currently represent payment activity, while the rest are tied to trading and liquidity provisioning by crypto platforms, said Zakil Suresh, CMT, founder and CEO at crypto asset manager, Bit Save, quote, however, this share is projected to rise above 50% in the next year as clear regulations emerge and businesses increasingly adopt stablecoins for cross border payments and payrolls, end quote.
The payment giant has made several strategic moves in the stablecoin space recently, including an investment in London based stablecoin infrastructure bank,
[00:57:29] Unknown:
BVNK. Oh, that's just that's so dumb.
[00:57:37] David Bennett:
B v n k. It's an upside down a for you know, it spells bank, but the a is upside down. You need better marketing. And a partnership with Bridge, which is a Stripe unit to offer stablecoin services in Latin America. Quote, there's a lot of activity and discussion about stablecoin in the space right now, McInnery said. Others view the space as still nascent compared to Visa's existing scale. Quote, Visa's 5 to $7,000,000,000,000 daily volume. I had no idea that they were doing 5 to $7,000,000,000,000 in daily volume, and it dwarfs stablecoins 20 to $30,000,000,000 daily transactions.
However, with 250,000,000,000 in stablecoin issuance, the space is still in its early ages. Similar to ecommerce in the late nineties, Jagdesh Panjia, founder of BlockOn Ventures, told the crypt, quote, as digital assets become more regulated, Visa may witness massive adoption in the next decade. Yeah. You better hope so, buddy, because your business model was dying. Well, okay. $57,000,000,000,000 a day, not exactly dying, but I've seen it happen. American Express used to be the shit, dude. Not not so much. Have you heard of Diner's Club?
Yeah. I'm just saying that all of this is gonna go away. And the only way Visa and Master and Earlier this month, president Trump's did sign the Genius Act. While the Genius Act provides clarity for businesses in The US global payment processors like Visa, they'll also need to stay watchful for regulatory developments in other countries, and I think that that's what they're saying about. They they need more regulatory clarity. We've got a lot in The United States now, but the European Union still far, far, far behind the curve. And that is it for the show for the day. I am terribly sorry that I did not bring you a show yesterday. Couldn't be helped.
It just was what it was. I will see you on the other side. This has been Bitcoin and and I am your host, David Bennett. Bennett. I hope you enjoyed today's episode and hope to see you again real soon. Have a great day.
Introduction and Episode Overview
Bitcoin's Decentralization Debate
Market Updates and Financial News
Nostr and Yakback: Innovations in Communication
