The Institutionalization of Crypto

By Jason Felger
4/7/2021

Sam Bankman-Fried, CEO of Alameda Research and FTX, and Dave Olsen, President of Jump Trading, join Jump Capital’s Peter Johnson and Jason Felger to discuss the driving forces of bitcoin and crypto’s broader institutionalization as well as the growth of new digital assets.
“I think the changes, especially on the institutional side, have been in the works for a good couple years. I think the kick off to me, was really the first time bitcoin prices got above 10,000. That sparked the gears starting to turn slowly in the institutional, money management and trading communities and the providers.”
Dave Olsen
President, Jump Trading

Episode guests

Peter Johnson
Partner, Jump Capital

Peter leads Jump Capital’s investments in fintech and crypto/blockchain sectors. He has led investments into several industry leading companies including Personal Capital (acquired for $1bn), Voyager (VYGR:CN), BlockFi, Tradingview, M1 Finance, BitGo, and Bitso. He is a founding partner and advisor to the DeFi Alliance. Prior to joining Jump in 2013, Peter advised financial institutions as a Morgan Stanley investment banker and Deloitte consultant.

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Sam Bankman-Fried
CEO, FTX

Sam Bankman-Fried is a tech executive, investor, philanthropist, programmer and crypto Twitter personality. Sam founded and is CEO of quantitative crypto trading firm Alameda Research, which is one of the largest traders in the crypto market, and FTX, one of the world’s leading crypto exchanges. Before founding Alameda and FTX, Sam was a trader on Jane Street Capital’s international ETF desk. He traded a variety of ETFs, futures, currencies, and equities, and designed their automated OTC trading system. He graduated from MIT with a degree in physics.

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Dave Olsen
President, Jump Trading

Dave Olsen is the President and Chief Investment Officer of Jump Trading, where he is involved in all aspects of the firm’s activities with particular focus on building strategic partnerships, investing in new markets, and developing solutions to complex post-trade needs. Prior to joining Jump, Dave led J.P. Morgan’s futures, options, and OTC derivative clearing businesses. Dave also had various roles in trading fixed income and derivative instruments, investment grade debt underwriting, mergers and acquisitions, and fintech venture capital investing. Dave is a graduate of Kenyon College and is based in New York City.

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Playbook themes

1) Centralized VS Decentralized - 23:00


But on the flip side, if you want to have composability, that's just never going to work for centralized products, the way it does for DeFi. You're never going to have this sort of seamless plugging together of applications anywhere else. That's a really powerful thing about DeFi and really cool. So I don't know. I don't know what the future holds exactly. But I do think that they actually have some overlap, but actually have decently different niches.


2) Partnership Announcement - 25:20

Still, in DeFi, there are things that we can do as Jump Trading, as a company and there are things we can't do, where there isn't regulatory clarity yet and we're being very careful on where those coins are. But in the arena of things that we can do, not only are we an active participant on Serum, we're also excited about the development of a new capability, that at least as of this taping, hasn't been announced yet, which I'll do now, that we're collaborating on a world oracle project called PYTH:

Website: www.Pyth.network
Medium: https://medium.com/@pythnetwork
Twitter: https://twitter.com/PythNetwork

3) Stablecoins - 29:00

There is a lot of innovation left to happen, in the stable coin arena. We're extremely excited about LUNA and what the Terra platform can do with regard to stable value moving in a digitized form, around the world, without the traditional intermediary structure behind it. That has a very wide range of applicability, that we think people are going to build on and it's going to be an important part of the marketplace.

By Jason Felger
4/7/2021

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