This is the open. The crypto markets had a rough ride this year, but for the industry leaders the show goes on ripple which operates. One of the biggest cryptocurrencies xrp is expanding in canada. With an office in toronto and a plan to bulk up its engineering team ripples, ceo is long time. Tech executive, brad garlinghouse, who joins us now brad good morning to you john good morning, good, to see you good to see you too, your companys been in the game longer than most. How would you describe this moment for the crypto industry? Well, i think, like several other moments of the crypto industry, you have a very early industry growing quickly and youre gon na have pullbacks uh you and i both witnessed firsthand the earliest days of the internet kind of web 1.0, and certainly we saw some pretty dramatic Shifts there, where the the e toys and the died, but that doesnt mean that the technologies that underlied those uh werent successful and we have obviously some of the most profitable so most valuable companies on the planet now born in that era and during a shaco Period, it is tough to stomach some of that near term pain, weve, seen that in all sorts of coins, obviously xrps had a rough ride. I do want to talk about bitcoin too, because inflation is sky high and we had seen this argument. Brad youve heard it. Many times before, the idea that bitcoin is a hedge against inflation for those who are new to this market and are trying to understand why investors moved away so quickly from bitcoin in a high inflation environment.

What is your general take on that? Well, i think all asset classes contracted – and i think thats certainly obviously the true bitcoin, but i also think you have to zoom out you know two years ago this month, bitcoin is about eight thousand dollars. Today, i think its around twenty or twenty one thousand dollars. Now, im not leaving like im, not pretending it didnt hit 68 or 69 000 in between those moments, but the reality is. If you zoom back and look at whats happening in this market, i think you are seeing people recognize that non inflationary or deflationary assets, particularly in a high inflation world, that matters and people will pay attention. But i think you do have to kind of zoom out and look at a longer arc of time to really assess you know: where is this market headed? Well, im glad you mentioned those early days of the internet, because there were a lot of investors that were excited about that area and maybe some stuck around and ultimately saw the gains from that. Others felt the pain and maybe looked back towards. You know other more traditional areas of investing whats, your general sense, because we did see a lot of lets say traditional stock market investors that saw what was happening crypto they came into the market and when, when they see this kind of pain in the short term, I wonder how it impacts their sentiment longer term, which you would think needs to be generally optimistic for the crypto industry as a whole to be successful.

You know. Warren buffett is well known for saying a lot of smart things that one of the ones that i enjoy the most is when everyone is fearful, be greedy when everyones greedy be fearful, and i think what youre clearly seeing happen now, there is a lot of fear In the market, but again you know whether youre looking at the people who did and came out looking the best out of the dot com crash or even the 2000, the great reset uh great recession, the late aughts. These are people who had the foresight to recognize that some of the pain is short term. I mean look john, you and i have known each other a long time, theres a reason i have this gray hair and it certainly is a benefit at times like this. To be able to say, ive seen this before we are investing were continuing to hire at a time when i think a lot of people theres a lot of fear. A lot of people are pulling back. Well lets stay on that theme, um, presumably youre. Looking for some folks with less gray hair as you hire, this engineering team in canada, tell us a little bit more about what gives you the confidence to build to to hire in canada. At a time when, when we have heard some headlines from the industry that are more focused on things like layoffs, look, i i think you described me in your intro as a long tech, executive and uh.

I tried not to take offense to that, but youre right. We ive seen some of this and one of the things thats really changed. I think is tech, tech, talent, really theres kind of a. I dont call it monopoly, but a lot of concentration in silicon valley, and that is not true. Today. The tech talent you have here in toronto is really outstanding between waterloo university, the toronto metropolitan university. You have some amazing engineers, some talent that we want to bring into the blockchain and crypto industry, so ripple announced were building our first uh canadian office here in toronto. Within a plan to as quickly as possible, hire 50 engineers here locally were really excited about it, and so far the reception has been really really strong. All right before i let you go one of the other issues. Weve seen whether crypto was up or down is the regulatory environment, and a lot of people have tried to get their heads around it and youve had a long, very public legal battle with the sec tied to the sale of unregistered xrp securities for those unfamiliar with. Why youve engaged in that battle? Why take a stand and how long do you anticipate that continuing regulatory clarity has been something that ripple and i have asked for from regulators around the world for years and we have gotten that from many jurisdictions. The united states really has been a laggard in that regard and its really out of step with other g20 markets, g20 economies.

So the united states, securities exchange commission did file a lawsuit suggesting a very kind of nuanced are ripples sales of xrp and investment contract, and this is a dynamic that we think is very clear and we think its very important for the entire crypto industry, not just For ripple, because if the you know, if youre the sec, you know youre a hammer and everything looks like a nail. You know the current chair of the sec has said he thinks everything, but bitcoin is probably a security. If thats the case, thats going to be a very negative sign for crypto in the united states at large and really youre already seeing a lot of crypto growth and talent move overseas, because of that would that include a market like canada? Well, certainly, we do think about that uh. Canada has, to some degree followed some of the u.s regulation, but also really canada is ahead of the u.s and that theyve already done a bitcoin etf, which u.s is still lagging. So look. The u.s was a leader in the internet kind of 1.0 experience, partly because there was that regulatory clarity that certainty and we dont have that in the united states.