Big banks and crypto firms are teaming up more than ever these days, but make no mistake, the competition between them is also heating up and banking and crypto leaders have been an ongoing debate over the firms offering stable coin yields and this debate has moved on from the genius, which is already US law to the clarity Act, which faced challenges in the JPMorgan Chase CEO Jamie Dimon. on the bill recently saying that banks won't accept it as it is now at the same time, the Wall Street Journal saying big banks are planning to launch a tokenized deposit network in the first half of next year.
This would allow representations of bank deposits to travel across blockchain 24/7 and is competition to the crypto industry's current dominance and stable coins will joining me live here at the New York Stock Exchange.
To weigh in is Jerald David, CEO of Lynq.
Good morning.
Great to have you here.
Thank you so much for joining me.
It's great to be back again.
Thanks for having me.
Well, first and foremost, let's talk about what's happening at this intersection between Trad as well as Dey.
We know that Wall Street giants, these financial institutions are also focusing on their own digital dollar network.
So what does all of this mean when it comes to the long term impact?
Yeah, I mean, I think that there's so much activity that's happening right now that it's such a positive thing.
I think you're seeing the positive and forward movement with reference to what you're seeing in DeFi in the digital asset space, but now we're seeing the convergence of Chadha actually embracing it.
I think there are a couple of things that are really important to keep your eye on.
The first is what that convergence looks like, what happens to the projects that have been out there and all the work that's happened over the course of the last, say, 10 years, and how does that impact what the consumer is going to see when they're working at, let's say, or dealing with, let's say their traditional banks.
Yeah, and of course when we're Talking about this, I do want to get your take on what we're seeing in the regulatory landscape as well.
It is a midterm election year.
We're keeping a close eye on the primaries that are unfolding across the country.
So what are your expectations when it comes to the regulatory landscape, in particular, clarity?
Yes, I think there's two things right now.
I think everyone's watching the clock right now, right?
I think that we're in a very, very, very precarious position down in DC.
There's obviously a lot of movement happening with reference to legislation, as you mentioned before.
The opening with reference to clarity already being passed, but now we're dealing with genius being passed.
Now we're dealing with things like clarity and how is that going to impact things.
I think that the actual lobby from the crypto space is doing what they're supposed to be doing down in DC, trying to push the message, but I think that the question now really is time.
Is there time within the legislative session before recess in order for legislation to be brought back to the floor and passed?
And it's hard to believe, but we are fast approaching that one year mark since the Genius Act has passed.
So it really gives you a sense of how much.
Time has passed, but of course we're still awaiting clarity when it comes to clarity.
So what do you make of the points of contention here?
Yes, I mean, I think you keep hearing two big points are out there right now, right?
The first, the ethics considerations that are out there right now and how is that going to come into play.
There's some questions right now regarding the state attorney generals and what role they're going to have on a go-forward basis.
And the other part really is, you know, yield bearing and what ends up happening with reference to banks, what ends up happening to tokenized deposits, and what is that going to look like with reference to yield or rewards.
And so given the fact that we're still awaiting further clarity, what are the impacts when it comes to the companies and the space?
I know that you mentioned some of the projects at the outset of our interview, but what are the implications for companies?
Yes, I mean, I think that it's where you're building right now, and I think that when I look at our company and what we're doing at Link right now, we're building a key piece of infrastructure, and I think that infrastructure right now is a place where all, all folks that are.
Have begun building there, should continue building there because these are pieces of foundational parts of the industry that need to be there.
So I think that if one has actually carved out a spot for creating pieces of key parts of the industry that will be moving forward, I think that's a place people need to stay working.
And of course for our viewers right now that are watching, most of them are stateside.
So given the fact That there has been so much focus on stablecoins.
Why are businesses starting to choose stable coins right now, and what are the pros and cons compared to, say, regular bank transfers?
Yes, I think this all comes down to 24/7 transferability.
When you think about how businesses operates, businesses are limited in their ability to go ahead and perform key banking functions.
Stablecoins unlock that in such a way that hasn't been seen before.
It's not just the transferring.
It's the ability to go ahead and conduct operations in such a way that is continuous.
When I think about what we're building at Link, we've created a system now that allows for clients to transfer 24/7 on a private permission blockchain which allows them to operate in essence, like you're saying, 24/7, which is a key piece of infrastructure again and the place that I think many people are driving towards.
And finally, before I let you go, because you have an insight into what's happening when it comes to.
Holders, what do you expect will unfold when it comes to infrastructure here on Wall Street, and what is your timeline?
Yes, I mean, it's happening fast when you take a look and think about 24/7.
If you're sitting in NSA, think about the announcements they've made with reference to going 24/7 and the motions that both the CME and Coinbase derivatives have done.
I think they're all set their own timelines.
I think their timelines are less than 12 months at this point right now.
You saw the CME.
Flip the switch.
ICE will be doing so relatively soon, and allowing for clients to have the ability to send funds directly to their FCM after hours to eliminate pre-collateralization is going to be a major unlock for the industry and it'll be a great piece of infrastructure for Tragfi and the digital assets space and it's in total.
Well, a lot to keep our eyes on as we head into the second half of 2026.
So I appreciate your time.
Thank you so much for joining us and thank you so much for sharing all of your perspectives.
