Transcription
Most people think blockchain adoption is years away, but a brand new document, uh, for a risk mitigation framework, uh, with some of the largest entities in the world and some very familiar blockchain names, suggests that we are way closer than that.
Today, we're going to be connecting the dots between Ripple, Hedera, Chainlink, XDC, Cardano, Avalanche, and others, alongside some of the largest financial institutions in the world, including DTCC, Euroclear, and the World Bank. Uh, are quietly all tying together to come up with a comprehensive framework for global risk management for public blockchain infrastructure, aka shifting the traditional financial system over into distributed ledger and blockchain. This could unlock, obviously, multiple trillions, getting up into the quadrillions of tokenized assets. This is not a drill. This is how the $2.5 quadrillion dollar financial system quietly migrates on-chain.
[Music]
What is up, everybody? Solomon here. Super excited to be with you all. Uh, it's been a little while since doing a video. I've been dealing with some, uh, pretty horrible, uh, back pain issues recently, but thank you for bearing with me. Uh, so I was doing a little bit of digging today and stumbled across this. This is a brand new document coming out in July of 2025. Very interesting names are in this document. It's a very short document as well. Uh, for those of us paying attention, um, with a little bit of common sense view on what's actually going on in this space, compliance is at the is at the core of everything for adoption. Um, this is a new industry-backed initiative that just dropped. It's called the Risk Mitigation Framework. It's designed to help regulated financial institutions safely use public blockchains. Again, public blockchains, not private ledgers, not secret ledgers, which with secret things that may or may not exist, but public blockchains. That's right. Um, not private enterprise ledgers.
The names behind this, uh, DTCC, uh, shouldn't be a mistake to anybody. We found some recent patents that we're going to go over here as well. Uh, but DTCC handles over $2.5 quadrillion dollar a year in annual settlement clearing. Euroclear, $40 trillion in assets. Ripple, you know Ripple, you know the XRP ledger, you know Ripple USD. Uh, Hedera, backed by, you know, probably the most impressive, uh, governance, uh, council that exists in this space and one of the most efficient, uh, technologies that exists in this space as well. Cardano, Ava Labs, Chainlink is in this document. Canton Network. There are phase one participants and there are phase two participants. Uh, with the World Bank sitting behind all of this as an observer. This isn't just some Web3 startup wish list. This is the actual infrastructure of global finance preparing to shift the system over and plug into distributed ledger technology.
What is this Risk Mitigation Framework? An industry-led effort facilitated by the Global Blockchain Business Council and Oliver Wyman. Also has ties into some of these DTCCs as well, to give financial institutions guidelines to analyze and control the non-financial risks that arise when they use public blockchain infrastructure. A cross-sector working group comprising financial market infrastructures, global systemically important banks, multilateral development banks, and leading Layer 1 protocol teams has collaborated to provide a common reference rooted in their practical experience of managing risks and blockchain implementations and to provide an overview of the technological, um, incorporations that are necessary to establish risk management frameworks. Um, the RMF aims to provide foundational steps towards a global risk-based assessment and proposed mitigation path, enabling the safe, secure adoption of blockchains, in particular public blockchains, for regulated financial institutions. When we're talking about all the money coming on-chain, we are talking about this, and we are talking about these public networks, and we were talking about the compliance that is necessary at the core of all of this, and for all of this to happen.
Why is this important for this to happen? Why is this important for regulators and policymakers? What is next? So, first thing we want to get into is phase one. Who is part of this framework? Phase one of the RMF includes Avalanche or AVA Labs, the Cardano Foundation, Clearstream, the, uh, Depository Trust and Clearing Corporation, or DTCC, $2.5 quadrillion dollars annually. Euroclear, which we just talked about, Euroclear, $40 trillion dollars in assets. Um, the Global Blockchain Business Council, the Hedera Foundation, Oliver Wyman, and Ripple. Let me repeat that again. Who is in phase one of this? Uh, well, I, I forgot to mention the World Bank sitting behind all of this as an observer. So you have again, Avalanche or AVA Labs, Cardano Foundation, Clearstream, Depository Trust and Clearing Corporation, Euro Bank, or I'm sorry, Euroclear Group, Global Blockchain Business Council, Hedera Foundation, Oliver Wyman, and Ripple, with the World Bank as an observer.
In addition to GBBC and Oliver Wyman, phase two will include Chainlink Foundation. We know Chainlink has deep ties into DTCC, deep ties into SWIFT. Hedera also has ties into SWIFT. Um, Ripple also has some interesting stuff, uh, tying back into SWIFT if you go back far enough. Um, or and, you know, obviously just directly competing as well. Uh, Canton Foundation. I don't know, this stuff's pretty interesting to me. I'm not sure about how you guys feel about this, but, you know, with additional organizations to be confirmed, if you would like to participate in phase two or phase three, please reach out to the GBBC council.
What's next for RMF? So, further to to further develop the, um, the Risk Mitigation Framework, uh, gets into some of the stuff that's next. Phase two anticipated for Q3 and Q4 of 2025. So, phase one is already well underway. Q3 and Q4 2025, uh, you saw up there that Chainlink is going to be joining into the initiative and Canton Foundation. Phase three anticipated Q1 and Q2 2026. How do you add comments, etc., etc.? It's interesting that we see again, similar names. DTCC, uh, some of you guys may have found the patent applications that we stumbled across. Uh, this article had like 8,500 reads, so obviously a lot of people referencing this. Um, it's a legit patent for digital liquidity tokens, um, that mentioned direct integration of the XRP ledger and Stellar for interoperable asset management, going as far as, and I know a lot of people will say the low-hanging fruit comments that patents are, you know, patents mention every network because they want they want to be open-ended. Yeah, but patents don't necessarily have literally the logos of the XRP ledger or XRP and Stellar, uh, as, uh, images in the patent. So, tokenizing liquidity. This is a longer patent. The other patent directly calling out, um, Hedera alongside other networks, uh, tokenizing quadrillions, uh, global assets with centralized control. DTCC putting out a patent basically for a hierarchical, uh, wallet infrastructure plan for managing all RWAs as they come on-chain. So, all the money, uh, pretty much in the world. DTCC, you get the picture. You can see what it references in here. You can go down and read through where it mentions Ceda and some of the other networks. Um, yeah, Bitcoin, Hedera, Binance, Flow, Tron, Tezos, Cosmos, and again, Ripple. U, so, yeah, pretty big stuff here though. I mean, this Risk Mitigation Framework, crazy to see Hedera along, Hedera Foundation alongside again, Ripple, um, Avalanche, Cardano. Uh, outside of, uh, Avalanche, I mean, pretty much you have like the, um, the DRC Alliance, right? Decentralized Recovery Alliance, pretty much mentioned. I know Chainlink's not in there yet. Um, but Chainlink obviously sitting on the governing council of Hedera. Uh, Hedera has adopted the Chainlink standard for for data management in a lot of different regards, um, from the DeFi standpoint. Uh, Hedera and Chainlink certainly collaborating as well. So, and Chainlink is no joke, by the way. I mean, Chainlink deeply embedded into DTCC, deeply embedded into SWIFT. Um, I think the first public network that interoperated with for settlement on top of, uh, JP Morgan's, uh, blockchain infrastructure. So, I definitely would not sleep on Chainlink, and we know, uh, you know, Hedera has, uh, SWIFT ties as well. You can go all the way to, you know, Sibos this year and SWIFT's event, and there's some interesting names tied in here. Uh, XDC is on here, obviously. You got DTCC, um, you have Hedera on here. Um, Quant, I believe is in here as well. Yeah, Quant. So, Tokenizer put out a good post. Seems that SWIFT knows a thing or two about innovation. Hedera, Quant, and XDC all chosen for Sibos 2025 exhibitors under the Discover section. What makes Discover different from regular exhibitors? In short, Discover members are handpicked by SWIFT themselves rather than paying for a membership. Unlike exhibitors that we'll see at the event like JP Morgan, IBM, BBVA, etc., all of which are paying good money to present at one of the top annual financial events. Sibos 2019, or yeah, Sibos 2019 exhibitor agreement states that a stand is about $17,000, blah, blah, blah. Discover members are actually curated to be focused towards specific innovation themes. You can see right here again, Hedera, Quant, and XDC. Uh, and Tokenizer putting out, running this through a prompt. Is it true that Discover members from Sibos can't pay their way in and can only be selected by Sibos to present? Uh, Discover zone participants at Sibos cannot pay to be there. They're handpicked by Sibos through a selective process. And we know back from HederaCon of 2025 back in February, um, that, uh, you know, SWIFT and Hedera, well, SWIFT was at the event obviously speaking, Alyssa DiCaprio, which I think I forget what her role is at, uh, SWIFT, but speaking on stage with Rob Allen. Rob Allen, AP+ Australia Payments Plus, which is a merging of FPOS, which is the AC system in Australia, and I think it's MPPA, um, in Australia, and I think one other entity. But anyways, um, another big announcement coming out today is Brazil's Vert Capital plans to tokenize up to $1 billion in debt and receivables on the XDC network. I'm not going to read the CoinDesk article because it's behind a paywall, but I'll read the AI Invest one or some of it. Vert Capital to tokenize a billion dollars in real-world assets on XDC network. This is Brazilian financial services firm Vert, um, including corporate debt, agribusiness receivables, and structured credit products using using the XDC network over the next 30 months. So, to put into context of how big this is right now, uh, if you go to RWA.xyz to see how many real-world assets have been tokenized, it's only like 25 billion. We just surpassed 25 billion excluding stablecoins. That number is probably obviously a little bit higher because they haven't aggregated everything. However, uh, in just over three years, um, under three years, 30 months, um, XDC network will get 1/25th of that volume across all of crypto. Um, so that's huge, obviously. Uh, and this is like, you're going to see more and more of these initiatives for RWA tokenization. I'll show you here in a second, uh, from Hedera Network, and you see BlackRock funds and all sorts of other funds, uh, coming out of Archax. Archax should ring a bell to people in the XRP community, to people in the XDC community, to people in Algorand, to people across the board. Um, but this move representing on XDC, one of the largest tokenization initiatives in the emerging real-world asset space and underscoring the growing role of blockchain in transforming traditional financial infrastructure. This development builds on Vert Capital's earlier earlier success in tokenizing $130 million in agribusiness assets on the XRP ledger, a prior blockchain deployment, but XDC getting about 10x that and about a billion dollars in tokenized RWAs over the next 30 months. So, pretty huge for the XDC ecosystem. Uh, XDC getting a lot of traction recently, too. I know there there was kind of a bigger influencer campaign. Um, you can go and watch some of that stuff as well. A bunch of stuff over the past week or two.
Full financial disclosure, obviously, and I'm not a financial investor. Genfinity has a media partnership with XDC. However, this is my own content. I'm presenting what I find is interesting, and I certainly think a billion dollars in tokenized assets over the next 30 months is valid and worth talking about, as well as a Sibos invite to the SWIFT event for XDC, Hedera, and Quant. Um, yeah, shout out to Tokenizer again, you know, and this is all in alignment with what we see right now. I did, like I said, that deep dive right when I started doing deep dives probably in 2019 or 2020 about how the Office of the Comptroller of the Currency was essentially the bank, the regulator of banks in the United States. That office basically regulates all the banking institutions. They were trying to get pushed across the line regulations for non-depository institutions to basically become national banks for these special purpose, uh, fintech charters in the United States. This was like five years ago. Um, interestingly enough, you see Ripple filing to become a national bank in the United States as a non-depository institution. Huh. And more recently, uh, about two weeks ago, you see BitGo also sitting on the Hedera Council alongside Chainlink. We mentioned Chainlink earlier. BitGo, uh, a bank and a trust, similar to what Ripple was doing. This is more recent. This was the 14th. Don't have the PDF in front of me for the BitGo filing, but I'm sure if you do enough digging, maybe you could potentially find the application somewhere. Ripple's National Trust Bank application, you can find. Um, it is right here. It is a lot bigger. It gets into some of the stuff I talked about. Um, just crazy to see all this stuff coming, uh, to fruition, and, you know, HyperScale Data clarifying XRP acquisitions to remain on the company balance sheet. I saw this today as well. Um, Intention to, uh, today clarified that its previously announced intention to acquire up to 10 million of XRP would remain solely on the balance sheet of HyperScale Data, not to be owned by Alt Capital Group Incorporated as previously reported, blah, blah, blah, blah, blah.
Mill City Ventures, uh, announces $450 million private placement to initiate a Sui treasury strategy, which also is obviously big news. We've seen this in Bitcoin for years with MicroStrategy. Um, we saw, I think what is it, Webis, I think was the company that announced, uh, a lot, I think it was like $100 million, maybe it was more, uh, in XRP treasury. Um, we also saw from that same entity, uh, I think some of that going over into Flare to for XRP DeFi. Um, I, there's just so much to keep up with here, guys. Some very interesting tokens were just created on Hedera mainnet, and they look like tokenized money market funds from Archax. For context, you know, and I, I'll go to Genfinity again, and you can as a good reference point about who Archax is. Uh, here this graphic pretty much tells you what you want to know about Archax, and you can see the entities that Archax surrounds themselves with. Uh, XDC, I think that's Polkadot, Solana, XRP, Ethereum, Bitcoin, Tezos, Litecoin, Stellar, Hedera, Avalanche, Algorand, Polygon, all Archax. Uh, Archax, uh, actually are the ones that that, uh, created these tokens. Uh, and this is huge sleuthing from Tata. This is Hbar, Tata, 1,000% top, I would say top five accounts if you like deep divey type content, especially Hedera-based deep divey content. Top five easy, top five, um, that is doing the digging and the research. His account is full, filled with like tons of deep divey content. Some very interesting tokens were just created on Hedera mainnet, and they look like tokenized money market funds from Archax. Names include BlackRock, Fidelity, State Street, Aberdeen, um, I think that's London Stock Exchange Group, LGIM. I probably have that wrong. You can see the image here though. Anyways, or no, it's Lloyds, I think. Um, ILF Group, Fidelity, State Street, BlackRock, um, Aberdeen, you get the picture. Lots of BlackRock, lots, lots of Aberdeen, lots of State Street. Interestingly enough, I think this was like a day or two after he posted this, um, the CEO of Archax stated, "Hbar Tata is right. We've created the contracts for all funds we have available on Archax. Hopefully, we will see those with balances soon on RWA.xyz." For context, RWA.xyz still doesn't have Hedera on there for RWA tokenized assets. Um, it just got Algorand on there, I think, like four or five months ago. I think it just got XDC Network on there like six or seven months ago. I think it just got XRPL on there like six or seven months ago. So, like I said, 25 billion on RWA.XYZ, but there are a lot of networks and a lot of tokenization projects and assets that are not listed on there right now. That's why I'm saying 25 billion is probably a low, low number. Um, I don't know if we're above 100 billion yet, but I know 25 billion is low. Um, I think even Dovu in Hedera has a billion dollars in, um, renewable assets over the next, I think it's nine years. Um, but anyways, this is the CEO of Archax, and you saw all the all the organizations and blockchain networks that Archax is involved with saying that yes, this is us. We've created all the contracts for all the funds we have available at Archax, and hopefully, we will start seeing tokenized real-world asset balances on Hedera mainnet on RWA.XYZ soon for funds, uh, dealing in BlackRock funds, for funds dealing in Fidelity and State Street funds, for funds dealing in Aberdeen funds, ILF, um, you get the picture, guys. I mean, I don't know how much more writing on the wall you need. There's literally a risk mitigation framework for the traditional financial system to start coming on and using and leveraging public blockchain networks. You have entities like Chain, Chainlink, who have been laying the foundation, uh, for years with SWIFT, with with DTCC, um, with all these entities. You have the stuff that Ripple has been doing for literally years, um, to not just disrupt but value-add into the traditional system and build out compliance layers in the traditional system. Same thing with Hedera. Um, same thing with XDC. Uh, I, I actually have started to see Hedera talk about trade finance, and I think it's awesome to see Hedera talk about the trade finance gap and $3 trillion and whatever that number actually is. But I know XDC Network has been building out initiatives in trade finance for years and have a crazy comprehensive, um, crazy comprehensive infrastructure as far as digital documentation and KYC, KYB, and all the stuff that is necessary and boots on the ground for trade, the trade finance industry, and it's not talked about in crypto because we're talking about whatever else is, you know, shiny in crypto. I would love to to be in a cross-chain podcast with, you know, Hedera and with XDC talking about trade finance or talking about whatever. And you're starting to see these cross-collaborations for these frameworks, these open frameworks to drive the industry forward. It's not just one network to rule them all. It's Ripple coming together with Hedera, coming together with Avalanche, coming together with Cardano. Uh, these fa, this phased approach, literally DTCC sitting in there, literally, um, you know, like we said, Euroclear, $40 trillion in assets, guys. This is like legit what we've been talking about since 2019, 2020. What's actually happening is actually happening. Um, I know it's happening slower than most of us want to happen, but it is, it is happening. And these walled gardens of private networks are not the end all be all for where this space and where this technology goes. These institutions want the liquidity that is going to be flowing in and about these public networks. It is literally a level playing field that we talked about for competition. It's how this, it's where this technology is going. The public networks are going to be used. It's just a matter of time. Uh, and yes, of course, the private networks and the subnets and all this other stuff that is private and doesn't have liquidity over on the mainnet and all this other stuff that is pissing everybody off is literally just these institutions dipping their toes in and understanding the technology and doing it in a way that's compliant because right now, we've heard that some of these institutions just can't fully adopt the technology because they literally can't. Like, I think even David Schwartz put out a post today, obviously CTO of Ripple, that the some of these institutions just can't come onto the public networks fully yet because of regulations. But these risk mitigation frameworks, things like that, this is what's going to allow that to happen.
Again, the whole purpose of this video is to go over just the scale of who's involved in these initiatives. Phase one of this, um, risk mitigation framework that is going on right now includes Avalanche, Cardano, Clearstream, $40 trillion in, or Clearstream, which is, um, a huge obvious entity, um, Depository Trust and Clearing Corporation, which is like 2.5, probably more quadrillion, uh, in clearing yearly, Euroclear, $40 trillion in assets, the Global Blockchain Business Council, the Hedera Foundation, Oliver Wyman, and Ripple, with the World Bank sitting as an observer, observer to this framework. Um, phase two, then you have Chainlink coming in, coming in. Then you have Canton Foundation with additional organizations to be confirmed. I don't know, guys. It's wild that this stuff is happening, and that the mass majority of the world, the 95% of people that still aren't in crypto, that still aren't in DLT or blockchain, that still don't even, that look at this space like it's total nonsense, don't see the writing on the wall because the writing is clearly on the wall at this point in time. It is a matter of when, not if. And it's pretty crazy to see some of the entities involved in this.
Then you start piecing this stuff together with, um, you know, the patents that have been public that have been applied for and publicized through DTCC. You start putting one of, you know, this isn't even just necessarily dot connecting. This is just literally saying, oh, the same entity that is in this, uh, that is in this initiative with all these Layer 1s, also has a patent that mentions all these Layer 1s talking about literally tokenizing all the real-world assets and having, uh, control, like centralized control and this hierarchy of wallet infrastructure. Oh, and that same entity also talks about digital liquidity tokens and specifically mentions different networks. Oh, and then you have like, you know, an entity like, um, you know, the, uh, what is it, National Science Foundation, no, National Science, um, Exponential Science Foundation, which has like Paolo Taska, uh, sitting at the top of this, you know, who was also a co-author to Quant's white paper, who also is an advisor to Ripple and an advisor to Hedera, um, putting out, you know, white papers for, like, multi-party computing-based, like, shared wallet infrastructure between Hedera and Ripple, uh, that also has like Ripple as authors. Like, I don't know, guys, maybe I'm just the crazy person here, but I think that this stuff's wild.
Um, anyways, I hope you guys enjoyed this video. I didn't mean to make it 25 minutes. I'm sorry to not do a video in like 10 days or whatever. Um, I think that this is crazy, and I think it's super fascinating. Uh, and I am excited to watch what happens because you literally couldn't write this stuff out. It's like a script for all the crazy stuff that we've been talking about for years is coming to fruition, and the writing is on the wall. So, I hope you guys enjoyed this video. Go to genfinity.io if you're interested in reading more. Um, you can also go to genfinity.io for a lot of these podcasts. We've interviewed a lot of these people. Um, I can't think of anybody else that's doing kind of these cross-ecosystem podcasts. Probably going to be doing some more in the very near future. Tomorrow, we have a gaming, uh, podcast between, uh, Hedera Network, Sui, Solana, um, and Algorand. Um, we've done a lot of cross-chain stuff with XDC, a lot of cross-chain stuff with Algorand, a lot of cross-chain stuff with Constellation, and, uh, way more networks than I can even remember. And hopefully, I can get Ripple on again for some more interviews with David or somebody. But hope you guys enjoyed this. This was, uh, a little bit longer, and I'll talk to you guys when I talk to you. Thanks. Bye.