The 2 Quadrillion Dollar Wave

Transcript

Even in the 2017 18 days, I always believed that uh you know the crypto should go mainstream and I put a lot of effort in doing that and a lot of you guys might know Polygon uh from uh 21 22 days where like you know from Nike to Instagram to Reddit all of these uh different large brands uh came into web 3 and most of them uh were working with polygon. Even now every day uh every other week you hear some large announcements like Visa or Meta doing the payouts and uh you know uh basically like some of the largest banks uh coming into crypto and many times they are uh

working with polygon right and so this is the moment for polygon like you know uh how I've been building uh polygon is for the for the real world adoption and this is the real world adoption wave that is coming in crypto and uh this is with stable coins and uh you know we call it the two quadrillion dollar wave. Um this is about the payments right so there's roughly uh two quadrillion dollars of payments are done uh you know every year uh we all know about you know huge hundreds of billions or trillions of dollars of volume on crypto exchanges because you know crypto till now has always been the speculative asset right

it's it's a new speculative class but the real world use case of crypto that has emerged very prominently is the stable coins Right. And uh the overall volume as I said there's two quadrillion dollars and there are around $3.6 trillion uh transactions. The revenue of the payment companies globally is $2.5 trillion right and you know some of them like stripes and world pays and uh you know checkout.coms of the world and then biggest of banks and and whatnot and uh you know around $28 trillion of that is in crossber flows like you know obviously two quadrillion includes uh a lot of like domestic flows also but the crossber part is where the stable coins

are extremely relevant and they already cracking the market. Domestic markets it might take time but the uh but the crossber movement stable coins are already making a very big dent and we can see the largest of the largest brands globally are you know asking us uh that how can they move their money with stable coins but the stable coins you know are already operating at scale but for payments their share is like 02%. Right? the the when you hear about like onchain volume of you know tens probably hundreds of billions of dollars uh on various chains like in Polygon also does like around uh $80 billion a month and I think Tron is the highest I think Tron

has the the the the stable coin movement volume of like probably $600 700 billion monthly but a lot of that is like you know DEX uh exchanges lending borrowing and whatnot right and that doesn't count into the payments volume the pure payment payments volume is hardly 002% uh globally which is like $390 billion and every single use case in payments is under 1% uh penetration that means any part of this of this payment stack if anyone of you are building uh your startup in crypto any part you touch you have a 100 100x growth uh available at today's scale and these payments are expected to grow uh you know at the continuous pace so the the the growth

that is available is probably 150 to 2x 200x from here. Um institutions like have stopped de debating. I think many of you guys already know some of these biggest names. Uh many of them are uh you know working with us in various capacities like you know Visa, Meta, Mastercard, A&Z Bank uh you know Revolute all of them are doing something or the other with crypto and I'm not even talking about the agentic pay which everybody believes that crypto and stable coins will have a big dent on. Um but I want to talk about uh today that where exactly is the problem right in this especially in the crossber right now I'm talking about the which I told about $28 trillion of crossber payment

where is the problem there what is the core problem on this one right it's not about like regulation and many other things but it's actually purely uh you know the banking uh stuff right so in the in the traditional markets generally there is 5 trillion to around $7 trillion which sits idle in in in these preunded accounts for crossber movement in the banking world right um you know these uh the correspondent banking systems you know for example JP Morgan they move around $15 trillion a month a single day sorry like you know that the number is so big that you constantly you know uh flounder on that like you know 15 to 17 trillion a day to give you give

you a reference Stripe $150 billion company moves $1.2 $2 trillion a year, right? And JP Morgan moves 15 to 17 trillion a day, right? So you can imagine the scale that it operates at. And all of this is done via correspondent banking system where banks maintain their Nostro and Wastro accounts. So they have to they have to maintain a liquidity in different geographies and using that only they are able to move these crosswater payments and that is where like the stable coins can actually create an impact and that's what like you know a lot of these stable coin companies are going after. Uh but the problem happens that these most of the businesses in the real world who are moving like 20 30 50 hundred billion

dollars a month they think of this in the form of countries but the crypto markets like you know the crypto players still are fairly technical in nature like we talk about what we talk to them about which chains you are going to use or which stable coin you want to choose you want to use what wallet you'll be using what are the RPC provider so it's basically see a long list of vendors. When a particular a large business wants to use stable coin payments, they have to choose from the compliance vendors to the ramp, on-ramp, off-ramp uh provider, wallet provider, bridge chain like there's there's a long list of complexity for uh each of each one of these uh you know to each one of these businesses and hence there are some

players in this industry who are building the end toend stack and thanks to AI development also this is now possible. what was unthinkable to build let's say one year from now that you could build the whole stack together with AI programming you could build the entire product together right so what needs to be built to handle this right so this part which I was talking that you know where you have a compliance money in money out accounts routing all of this is done under one single API for businesses so that they have one single API they pass it on to their AI development uh you know agent it integrates ates and now they don't have to think about it. They are just moving money from one point to another. Like when we talk to our customers now, we

don't talk to them that okay we are polygon we are the blockchain you can you know move money on polygon blockchain. We tell them that you have money wherever in the world in whichever form. It might be in it might be in fiat currency. It might be in a bank. It might be with a fintech. It might be in stable coins. Whatever it is you want to move it from point A to point B. We facilitate that. Doesn't matter and you don't need to worry about how it is happening in the background. It all goes into the background. So there are two large players like you know I would say that who are building the full stack.

The one is polygon and other one is stripe right and you could see like you know if anyone of you is following the journey of polygon in the payments in the last one one and a half years you will see that stripe acquired bridge for the regulated money movement using stable coins right they acquired privy for for wallets right and then they are building the tempo chain which is going to become their own uh you know like the settlement layer also similarly like polygon has always had uh the polygon chain and you can see the polygon order in reverse, right? So, Polygon always had Polygon chain and the Polygon CDK which is which allows uh businesses to launch their own custom chains, private chains, compliant chains, right? So, we already have the bottom part and we are

building towards the the other sides of the thing. So, we are we have like uh you know we recently acquired Coinme which is a regulated payment provider in US. We are acquiring licenses in Europe uh UK and Polygon will become the first blockchain native company which actually has a regulated fintech money movement rails across the globe and that's what polygon is trying to build towards that's called polygons. So we have the sequence wallets we acquired sequence for the wallets and then polygon trails is the crosschain intent platform. Basically once you use the polygon MS stack you don't need to worry about any complexity related to blockchains or banking for that matter right all you need to do is use the API to provide as

a business as a neo bank just use that API to move the money from one place to another and everything is handled via the same API and I think like stripe sees this truth and that's why like huge respect for stripe also because they are the the first you know payment native company who see the full uh spectrum of the uh stable coin the power that stable coin offers and they are building towards this full end to end f future right so um that's as I said that you know that's what polygon is is building uh you know these licensing and all these integrations take time uh we spent like around I would say 3 to 6 months last 3 to 6 months in integrating all of

this licensing and everything and we've barely started moving and we already have started hitting half a billion dollars in volume. I feel that within 3 months, this is not the time where we have started, we have not started ramping up the volumes yet. I think within 3 months, we'll start doing a billion dollars volume a month. On the chain, however, stable coins are already very big. I think many of you guys know that Polygon is already the the biggest uh stable coin by various metrics. We move around $70 billion uh in the stable coin, you know, payments. And I think a lot of you guys also know that these famous applications like Poly Market, Courtyard, they're all built on Polygon and continue to build their new uh like

uh Poly Market recently launched their pups uh on on Polygon, their V2 and they continue to launch some amazing products and uh the chain uh uh the the the the traditional Polygon chain which you know a lot of people use uh for various purposes. uh this actually is in terms of revenue also it's like actually crushing it uh you know which goes to our pole token holders and uh the revenue generated is around $36 million I think in terms of the uh crypto chain protocols it's like top five top seven uh chain in terms of the revenue generated and much bigger than most of the you know the the large uh crypto assets that you see and all of these

fees goes into uh you know acquiring and burning pole and this is like a tweet from grow the Pi which shows you that in terms of the uh you know the Polygon stable coin transactions we are bigger than Ethereum L1 we are bigger than Arbitum and base combined right and this is like the stable coin transactions if you look at many other matrices like USDT0 holders we would be double the double the second player right so a lot of people don't know in crypto that polygon you know chain and the fundamentals are growing because you know the token is not doing that great in the markets And people don't realize that the fundamentals continue to grow uh you know for polygon and uh uh you know all this fees is actually uh uh results in

the burning of polygon's native token. The pole token uh last month we burned 100 million pole tokens. the revenue on the chain is already uh lined up around around 21 million uh pole for burning and I think like every quarter uh the protocol will will will burn 60 million to 100 million pole which is almost 1% of the supply. So I think since starting this year we have been deflationary because there is polygon has 2% inflation overall and I think the uh the chain activity generally offsets offsets it and has made the pole token deflationary this year because of the 10x uh ramp up in the revenue we got right and uh that's that's all from my side uh but the most important message I

want to give to you guys is that the blockchains are going mainstream and stable coins are the the the biggest use case of crypto uh that is going uh mainstream and I believe that you know with the Polygon MS what we are building is this entire you know regulated payment stack for the banks and the fintex across the globe and this is alongside our chain infrastructure the decentralized chain that we have built and that makes polygon very unique and uniquely positioned uh in this environment because generally you have uh the mainstream payment providers who are trying to get into crypto. Whereas you have like the pure crypto blockchains which are considered to be

like still a little bit you know kind of uh uh uh uh you know black and white or you know kind of region of the in in the finance space but Polygon is trying to come in the middle where we have regulated payment rails and everything and then we have our like hardcore crypto uh infrastructure background and then combine these together when we go to the largest banks and fintex generally we are the we are like you know one or two people in the with like I talked about stripe also which has this complete end to-end strategy and that is that is resulting in huge amount of these large brands coming on polygon uh I think uh in the next uh 2 to 3 months the kind of brands that we are going to announce that are

coming on polygon is is absolutely uh you know like unthinkable for crypto and some of them will actually you know going to shake the the crypto industry that okay these brands that are day-to-day brands that we that we know and hear about they are coming into crypto and polygons is paving that way to bring into that. So I thank you all for uh giving me your audience. Thank you so much.