Enterprise Adoption of Stablecoins - TOKEN2049 Singapore 2023

hey how's everyone doing today did uh anyone else have trouble getting here today from the F1 traffic yeah I literally just walked in so uh we're going to take it from here so my name is Dave yorak I lead ecosystem development at Trona and speaking of conferences is really something we like to do engaging with our community is really something that's Paramount Atron and this is a great way to get out into the market to share with you what we're working on what we're thinking and even just as importantly we want to hear your feedback we want to answer your questions um and really get your input because at Tron uh our community is really incredibly important to us uh so over the past year since token 2049 last year we've been a little bit busy so we've grown accounts by over 63% at this point right we have it says 182 million on there it's probably I would guess over 183 million at this point uh our market cap is just about 7 billion and we've done more than or about 6 and A5 billion transactions uh that's that's a pretty fair amount also importantly you know we we talk you hear a lot about daily average active users um Tron actually has more average daily active users than Bitcoin or any other chain if you there's a lot of work out there from firms like massari and nanson and if you look that up and go research it um you'll see that Tron is leading the the blockchain world in terms of a of active users right and we'll get into why a little bit later um and then interest interestingly yes um according to the firm Masari um at the end of June over 35% of all stable coins transact on the Tron Network right that's you got to say that's pretty impressive additionally we've been launching new products and in July we we launched Stak usdt and that is our first product that's really a tokenized real world asset and that's a bridge between traditional finance and blockchain and it connects crypto with traditional assets and one more thing you know here on stage I can see this sign that says there's a blockchain that's the greenest in the world well last year we worked with a company called CCRI cryptocarbon ratings Institute and we did our own work to see how green Tron is and Tron is one of the greenest chains in the world one of the most environmental environmentally friendly chains in the world so I encourage you to go look up that report it came out last November it's from CCRI and Tron um and it really shows how environmentally friendly Tron really is so today uh I want to talk to you about payments so I want to go over the traditional model of payments what we've seen up to now on web 2 and then I want to focus on what's coming right what's ahead and how do we get there and that's really how stable coins become ingrained into the market and really become the predominant form of payment technology and payment transactions throughout the world so let's get into it right so the web 2 model of payments is actually good it's really good and it's worked really well to this point right so anyone from around the world I'm from Chicago I can go into any shop here in Singapore and buy something without any trouble at all and that's really that's really positive um and the current model works great but it's a web 2 model and it it doesn't it's not capturing the emerging Technologies and there's some issues with the web 2 model first of all is it's kind of expensive right so you know $ $3 of every $100 goes to a variety of middlemen right so it's not a direct system there's a variety of middlemen that um do things like authorized transactions authorized um borrowers or or consumers authorized lenders there's a lot of processing that goes on in between that plus it's not particularly fast it takes at least a few days for all these payments going on in the world to settle right so you know there are some there are some issues with it and web 3 and stable coins and blockchain have the opportunity to improve that but you might say well okay a couple dollars per every hundred really isn't that big of a deal you know to pay for the safety and and soundness of your payments right and be able to buy anything around the world well the payments industry is actually gigantic right so the the consulting firm McKenzie did some work last year and they found out that you know over 2.1 the payments industry generates over 2.1 trillion dollars of revenue for Global Banks right and banks that makes up about 40% of their revenue and they project that amount to grow to over 3.3 trillion in just a few years right so now you're thinking all right if if you let's say you're a bank right and you have 40% of your Revenue coming from this technology that's kind of outdated right you can choose to fight it or you can choose to adopt it right and so you see different strategies throughout the world some companies I think the smarter companies are choosing to adopt that technology so you see Visa Mastercard and companies like that trying to evolve and trying to engage with the new technology but you see other companies EG retail banking in the United States really fighting that and the biggest way uh I think traditional banks in the US are fighting this this new payments model is through regulation or at least in the US the lack thereof regulation right um and one of my favorite sayings is that when the Winds of Change blow be a windmill and not a wall right and the stable coin change isn't just Winds of Change it's a hurricane of change right and this is what we see so right now now the hurricane the hurricane the stable coin market cap is at 122 billion but over the next 5 years that growth is going to explode and be over 2.8 trillion right that is amazing growth so what's going to drive all that growth and where's it going to come from and how are payments and retailers and consumers going to en engage and facilitate all that growth uh well before we get into that let's look at how it's being used now so milk Road has done some interesting work and they looked at the volume of stable coin transfers being used right now you know just to see is anyone actually using stable coins for anything right now well the volume of stable coin transfers is just under $8 trillion throughout the world and that was at the end of last year so it's probably higher this year and that transfer volume is the same or nearly the same as what occurs on visa and MasterCard these major Global Credit Card networks right so there's demand for stable coins in the marketplace that there's there's a definitely multiple use cases for stable coins in the market um and we're seeing that manifest itself in a variety of ways and I'll extrapolate this out with the last slide so if you see the stable coin market cap explode to whatever it was over $2.

5 trillion dollar uh the the transfer volume of stable coins is going to move along with it all right so let's talk about the web 3 Model right the web 3 Model offers significant advantages to the current model first of all it's instantaneous secondly it's it's secure it's really hard to commit fraud on a blockchain network most importantly it's low cost right it's interoperable and it's Direct right there's no intermediates you don't need intermediaries in a blockchain world they they're just really not necessary right and importantly uh it it offers or provides consumers with a choice of using a different payment mechanism or payment token for different purchases right and it allows more freedom for consumers to choose how they want to hold their currency right so if if you're let's say your country X right and you have your currency but your currency you've made some poor monetary policy decisions and your your currency has rapid inflation the users of your country can swap out of that currency go to a dollar back currency they can go to a goldb currency if they want right so this is much better for consumers around the world but you know at this point adoption is early so what's going to be some drivers of this adoption right I think it comes down to three areas uh first you have business model Evolution second there's what I call Global personal capitalism and third there's the adoption by adjacent Technologies so let's go through these business model evolution is really the recognition of web 3 by Enterprises that they can gain a competitive Advantage by adopting these emerging Technologies right so let's say if you if a company adopts stable coins for payments or crypto for payments right they have the opportunity to really create significant efficiencies within their model right they can differentiate themselves they can create pricing power in the marketplace which they otherwise would not have had uh and then ultimately they can really leverage all of those things to increase their competitive Advantage um and really if they're first mover if you see companies that are smart enough to be a first mover in these areas they can they can leverage that advantage to really lock in their customer base for a much longer time the global personal capitalism is something that is the ability of consumers around the world to secure monetize secure and monetize their Creations their information and their activities right it's really it creates this explosion of personal property rights that is really yet to be seen and it it's going to create new markets and all of these markets will need to have some type of payment mechanism involved in them and that payments will occur via stable coins right and I think this is going to lead to further adoption of stable coins as payments now the third piece of this puzzle is adjacent Technologies so when you think about things like like iot or virtual reality right or um AI things like that those things have payments involved in in them as well to to a large extent and that's going to further adoption further the adoption of stable coins as payments so we're ALS we're already seeing some key P some some countries um really make significant moves in legislation to make stable coin payments a reality so in Asia you see the monetary authority of Singapore and if anyone is here is from the monetary authority of Singapore big shout out to you and thank you uh you helping make great strides also in Japan we've seen great legislation for stable coins uh in Europe we've seen Micah which is helping to further web 3 and then in the Middle East we're also seeing some significant legislation coming out of there right these countries are taking the windmill approach to web 3 you see other countries unfortunately the US taking the wall approach to web 3 and ultimately as we know that's not going to be sufficient and we we really stand the potential to fall behind um but that's a different that's a different topic a different presentation so now lastly I want to point out this gentleman right here Prince a right he's in Ghana and he's already using stable coins for payments right so in this picture what he has done he has leveraged the Tron network to use usdt to buy a new phone there right and we're seeing this happen around the world we have uh amazing adoption of the Tron Network throughout the world um from Argentina to Africa throughout the Middle East uh people are using the Tron Network to get out of their home currency and to get into a stable coin like usdt right but this is just the beginning and Tron is continuing to take take steps to be the global settlement layer uh that's all my time but thank you