00:00 Speaker A
Now, we just talked about Morgan Stanley, so we got to talk about their cousin, J.P. Morgan, who I still think should marry their families together so we can have J.P. Morgan Stanley.
00:10 Speaker A
But the story we have here is back to the hacks I’ve been telling you about all week and we got a problem, man. J.P. Morgan issues blunt warning as investors move to safety, and it’s not just J.P. Morgan that’s issuing blunt warnings. We have Crypto’s massive exploit may force Big Banks to rethink their blockchain plans, Jeffries warns. This is the two of the biggest organizations on the planet.
00:29 Speaker A
Now, let’s not pretend every time we get a headline that says J.P. Morgan says or Jeffrey says, J.P. Morgan, he’s dead.
00:37 Speaker A
He didn’t say anything. Some guy at JP Morgan said it and some guy at Jeffries among their tens of thousands of employees, he said it. But what they’re saying is true to some degree.
00:49 Speaker A
They’re saying that the hacks that we’ve seen of late that I’ve explained to you over the past few days on these shows, that those hacks are going to basically put a pause on Wall Street adoption of crypto rails. Jeffries went as far to say that this will stop the adoption of real world assets on chain and it will stop the adoption of tokenization. That is complete and utter nonsense.
01:08 Speaker A
I’ll tell you why.
01:12 Speaker A
SEC Chairman Paul Atkins said that everything will be tokenized and on crypto rails by the end of 2026.
01:21 Speaker A
Then the DTCC got a no-action lesser letter from the SEC and said that they will be moving to tokenized rails by the end of 2026. They settle 4.5 quadrillion with a Q. I’m not even sure that’s a real number. 4.5 quadrillion in volume a year. They basically settle the entire stock market. So this is not going to stop tokenization because tokenizing an asset is better, it’s faster, it’s cheaper, it eliminates the middle man, things can be settled in real time.
01:48 Speaker A
That is happening. Where the confusion comes is what can you do with those tokenized assets? Because we know that once something is tokenized and once it’s a part of your portfolio, it can be used to earn a yield.
02:02 Speaker A
And that’s really where the question mark is here. Will they trust DeFi to go into DeFi and take those tokenized assets and put them to work and find a way to earn a yield. I agree with them, I don’t think that’s going to happen. What is probably going to happen sadly is that these large institutions will create their own centralized protocols for earning and lending and borrowing and they’ll keep it inside a walled garden and the general public will not be able to capitalize on that.
02:35 Speaker A
There’s so much more to this story, but I’m going to move on to the scarier part, which is who’s actually hacking these protocols? It’s North Korea. D5 faces crisis after Lazarus infiltration claims, Kelp down hack may be just the beginning.
02:56 Speaker A
So we know that the Lazarus Group in North Korea is behind most of the huge hacks that we’ve seen in crypto and it’s clear that they’re finding novel new ways to steal people’s assets. Like I said, we’ve described DeFi as composable LEGOs. I take a little bit here and you go here and this you earn to yield and you re-hypothecate here and then you move this one here. I’m going to remind you, I use this meme before. It’s not LEGOs, it’s Jenga and this guy is North Korea.
03:19 Speaker A
You’re playing Jenga in DeFi right now with a guy with a flamethrower and an entire national government behind him and it makes it very clear that your assets are not particularly safe. It’s scary out there and I have to agree sadly with the banks that DeFi adoption, especially by institutions is probably going to be slowing at least until we can prove that these systems are safe.
03:45 Speaker A
I mean, think about once you let Anthropic’s Mythos in there which could barely hack everything at all times. This is only going to get scarier and your assets are not particularly protected.
