Money in Motion: The Second Wave of Tokenization

Transcript

Hi everyone. Uh I think this is the most comfortable stage in the whole venue. So, I hope you're well seated and that you had a as we do a very good day here at Token. Very happy to be here uh representing Ledger. I don't know if some of you do own a Ledger device. Maybe you can raise your hand if this is the case. Okay, but quite some. Um I'm here to remind ourselves of a few things.

Um it's going to be a presentation about security. It was going to be a presentation also about opportunity. Why? Because there's a convergence of multiple factors that coming together are bringing us here for an opportunity that I think is certainly unprecedented. But at the same time with a level of risk regarding information security cyber security that is also unprecedented.

So, that's the topic today. What's going on? Something is happening for both institutions and for individuals. At Ledger, my role is to uh manage the consumer business. I have a counterpart managing the enterprise business because the question of security of proving your intent, proving that you want to do something is a question that applies to you, to your projects to your institutions but also to you as individuals.

If you look at what's going on I think we're just at the beginning of tokenization. It reminds me telecom industry when Skype came. Telecom was an old industry very expensive, very complex. And actually, when you think about personal finance when you think about stock market it's still pretty much the case today. Why should stock markets be open from 9:00 to 5:00 on the weekdays?

Why not 24/7? Why not on the weekends? Why is there no global opportunity and global access for this? So, this is just the beginning of this movement. And many of you here are working on this project to make it easier. Make it more accessible to more customers. So, tokenization and tokenization on public blockchain that matters is something happening now. The second step is up.

Is what's what's happening with services around this tokenization. If you consider tokenization of money stable coins are absolutely the first form. And if you look around the world not only Western US, but globally this is more and more equivalent to a a currency and to money. I remember because I worked there the beginning of e-money. And e-money was a bit of a special animal.

E-money has its own legislation. But today, all of us have e-money in our pockets, on our mobile. We also have money that is not e-money in our bank accounts but which is what? We don't know. The confusion between stable money or tokenized money as we see it today and money everyday money is progressing and will be totally in a few years. So personal finance from a consumer side institutional finance is moving to tokenization. And with that you get a relatively large number of services that come on top of this.

So the services, what are they? You can exchange token against another, you can invest in a portfolio, you can yield your portfolio, you can lend, you can borrow. We are just announcing the the launch of a a Bitcoin lending Bitcoin borrow sorry product inside the ledger wallet in partnership with Morpho and Ledger Rising. You can access your crypto or your stable through cards interoperable with the entire financial ecosystem. So this is great news and actually all of personal finance as all of institutional finance is moving to a token format on the blockchain.

The other important factor is okay, this is also the favorite form factor for agents. If you ask your agents when it was said in other conferences today, what is your favorite way of paying or getting paid? Stable will come first in the picture. So agent take is also in convergence with the tokenization and it's just the beginning of tokenization. So everything looks fine, everything is great. But questions start to arise. And the type of question we can wonder about is okay, is it secure?

And if you read the news, if you see what is happening also square eye, the number of attacks, the cost of attacks, the form of uberization of attacks, of scams, of hacks, I think it's good we are well seated in this room because that's pretty scary. And that should scare all of us in this industry. So, what can you do when you are scared? You can ignore the problem. And I think having worked in tech since tech exists, we've been pretty good at ignoring some problems.

Think about phishing. I think there's been 25 years worth of phishing. Who in this room has changed their habits because there's phishing? And still people fall into the traps and people who think we are in the know. What did the industry do for that? Ask me. It's just the beginning. 25 years after, it's not a proper response. But what was at stake in Web 2 has nothing to do with what is at stake today. The fact that everything is getting tokenized, that public blockchains are winning, that there is agents accessing your wealth, your investments, your payments, is completely changing

the weight you put in the balance against your security practice. So, on one side you get a security Armageddon where honestly attackers have the advantage today. And on the other side, we are trusting more and more digital assets that are at risk. The good news is that there's something you can do about it. And this is what we've been working on at Ledger for now almost 12 years, which is to create devices, hardware, that are made exactly to cope with this problem.

Why? Because cryptographic signature is a solution that is a perfect solution for the tokenization on public blockchain as long as it's not done on devices that are not made for that. Phones and computers were not built for security. We see it every day and still we don't always realize that we cannot just rely on this for the security of institutional grade and for our personal security with our personal assets.

What is Ledger made of? Some of you know it because it's a good way to store your crypto, to hold, to feel safe. Last year, we've introduced Nano Gen 5, which is this little device that you see here with a screen. The screen is the trusted display. What is a trusted display? It's a display that is not the display of your phone. As simple as that. It's running on a secure element. It's running on a dedicated OS. And so it's the screen that doesn't lie to you.

Because what you see on the screen is what will happen on the blockchain. We made it larger so you can check your transactions. You can see exactly what you're doing. The responsibility is a shared responsibility. We are open to any projects that want to leverage this type of security both on the enterprise side and on the consumer side. You can integrate Ledger to your solution and to your platform.

And making it available not only through the application that we built, the Ledger Wallet app, but through your own application. So that's the sense of us fostering the idea of a security platform that can be integrated throughout Web 3 in every single project. And progressively, as there's this convergence of the world's asset moving to digital to everything that will be happening on mobile, on computers, and online. So, you can scan this QR code and discover how you can integrate the Ledger security into your project.

You will benefit from a separate device on which people authenticate, on which people validate transaction, on which people authorize the movement of money. And this is applicable to you as individual, but it's also applicable to your agents. Because agentic coupled with blockchain and cryptographic security with the keys gapped into a device like this is finally safe. Otherwise, you cannot trust your agent from not being intoxicated, from the agent eating a little bit beyond what you want to expect because it's probabilistic. This is deterministic.

This is hardware. This is what we call the revenge of the atom. The comeback of dedicated hardware that is finally a solution for you and your projects. So, we are here today. We are also here to announce more optimistic things than scaring everybody with a security story, even though we believe it's our responsibility for all of us in this industry to realize that we need solutions. So, we came with a a famous partnership uh with the San Antonio Spurs with a special edition, and you can actually play basketball to uh relax on the the idea of the security Armageddon at the Ledger booth.

So, special edition. The other thing uh that I want to say today uh is that uh some people have been asking about okay, how can go further? We announced this device last year. We announced the connectivity. You can integrate a Ledger button to your application. Last year, every year, we run a conference or an event, let's call it more like this, in Paris in the headquarter of Ledger, where we announce a number of things. The question of UX, the question of how difficult it is to use a ledger device on top of what you're doing is a legitimate question.

So, we'll be announcing things that I won't announce today, but you're welcome if you're in Paris, so you should pass by. Come, you're all invited to this event that is taking place in our headquarter. Otherwise, do scan this QR code or come to our booth. It will be live-streamed and there will be, I think, really breakthrough things that should invite you further to leverage the ledger security for your applications, for your projects, to the benefits of consumers, to the benefits of your companies, your entities, and I think to the benefit of this industry.

Because we can change the world, but it's not going to happen if we leave it in the security standard, in the security situation that is the situation of today. So, I thank you all for your attention. Let's do something about it. Let's not ignore the problem. Let's not do another "Ooh, there's phishing, let's ignore the problem." We need to tackle it. We're here for you to work with you. So, come, come with your ideas, let's discuss, and let's see how we take it to the next level. Because if we resolve this problem with a bit of effort on UX, the world is ours.

So, thank you very much, and I wish you a very good two days here in Singapore, and see you all in Paris.