Guy Young (Ethena) on a New Model for a Crypto-Backed Stablecoin (EP.459)
On The Brink with Castle Island
Release Date: 10/09/2023
Weekly Roundup 04/18/25 (Signature Postmortem, Mantra collapse, Powell on stablecoins) (EP.615)
On The Brink with Castle Island
Matt and Nic are back with another week of news and deals. In this episode: We recap Nic’s article on why Signature collapsed Crypto exchange OKX their plans to expand to the US Kraken that US equities are now supported on the exchange MANTRA, a layer 1 network focused on RWAs, saw the price of its native token 90% in a matter of hours Global Payments agreed to Worldpay, a payments processor, for $24 billion from FIS and private equity firm GTCR The US Department of Homeland Security has launched a into Anchorage,...
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Fred Hsu and Michael Ho (D3) on Creating Efficient Domain Name Markets (EP.614)
On The Brink with Castle Island
Wyatt sits down with Fred Hsu and Michael Ho of to talk domain markets. In this episode: The existing domain name industry and legacy systems An interoperable marketplace for domains New financial promitives around domains and RWAs
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Yuval Rooz and Eric Saraniecki (Digital Asset) on the Canton Network (EP.613)
On The Brink with Castle Island
Yuval Rooz and Eric Saraniecki, co-founders of Digital Asset join the show. In this episode we discuss: The origins of Digital Asset and the path to starting the firm. Views on privacy in the context of public blockchains. How enterprises and financial institutions are approaching tokenizing assets and leveraging blockchain technology. Examples of how on-chain privacy enables use cases in collateral management and stablecoin payments. The role of the Canton Network public blockchain for enabling institutional use cases. How Canton Network works from a design perspective. To learn...
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Weekly Roundup 04/11/25 (Tether’s new stablecoin, Signature, dedollarization, DoJ disbands crypto team) (EP.612)
On The Brink with Castle Island
Matt and Nic are back with another week of news and deals. In this episode: Is dedollarization happening? The SEC's Division of Corporate Finance released a "" The US Justice Department has its National Cryptocurrency Enforcement team The SEC releases new guidance on securities offerings in crypto markets FDIC Chair relaxes rules on crypto activities at banks Paul Atkins is confirmed The SEC has approved options trading for spot ETH ETFs Tether is exploring a US stablecoin Janover is doing a Microstrategy for SOL strategy Michelle Bowman is launching a review...
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Wyatt Lonergan and Juan Lopez (Vaneck Ventures) on Stablecoin Adoption and The Institutionalization of Crypto (EP.611)
On The Brink with Castle Island
and of join the show to talk stablecoins and institutionalization. In this episode, we cover: The landscape of stablecoin growth and activity A world with many stablecoins vs few stablecoins Winning/losing companies in the new stablecoin era Impact on the longer tail of altcoins
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Hoolie Tejwani (Coinbase) on The Evolution of Coinbase Ventures (EP.610)
On The Brink with Castle Island
, the head of Coinbase Ventures joins the show. In this episode we discuss: The history and rationale behind the launch of Coinbase Ventures. The evolution of the crypto venture category. Areas of focus for Coinbase Ventures. Stablecoins, Crypto/AI and consumer startup category. The regulatory landscape in the United States. Operation Chokepoint 2.0 and the impact on startups. The rise of the Coinbase Mafia. To learn more visit
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Weekly Roundup 04/03/25 (Circle S1, Tariffs, Galaxy settles, BitMEX pardons) (EP.609)
On The Brink with Castle Island
Matt and Nic are back for another week of news and deals. In this episode: What’s the deal with the tariffs? Are the tariffs 4D chess? STABLE Act advances from committee Galaxy settles with the NYAG for touting Luna Trump pardons the BitMEX founders Coinlist returns to the US FDUSD has a depeg amidst Justin Sun drama Fidelity launches a no-fee crypto IRA product Larry Fink is bullish bitcoin Content mentioned:
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Alexei Zamyatin (Build on Bitcoin) on True Rollups on Bitcoin (EP.608)
On The Brink with Castle Island
, the cofounder of (BOB), joins the show to talk about the state of the art in Bitcoin Rollups. In this episode: Can Bitcoin achieve parity with Ethereum rollups? How BitVM and BitVMv2 changed the game for Bitcoin rollups When will Bitcoin rollups be considered “Stage 1” Ethereum’s existential crisis Bitcoin fees in a rollup world The risk of L2s cannibalizing Bitcoin Will Bitcoin DeFi look different from Ethereum DeFi? Why Bitcoin deserves Rollups What soft forks is Alexei looking forward to? Does institutionalization ossify Bitcoin? BOB’s progress and roadmap for 2025 Learn...
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Weekly Roundup 03/28/25 (MiCA Stablecoins, Gamestop, Hyperliquid) (EP.607)
On The Brink with Castle Island
Matt and Nic return for another week of news and deals. In this episode: We reflect on our podcast with Paolo Ardoino The EU’s MiCA rules make launching a stablecoin virtually impossible We explain the Ghiblification crazy OCC removes Reputation risk from bank supervision World Liberty Fi launches a stablecoin Hyperliquid suffers an exploit - are they decentralized? Fidelity is exploring the launch of a stablecoin ICE is looking to use USDC Coinbase is reportedly looking to acquire Deribit US Treasury lifts sanctions on Tornado Cash Sei is looking to buy 23andme
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Paolo Ardoino (Tether) on stablecoin bills, pursuing an audit, and getting to 400m users (EP.606)
On The Brink with Castle Island
, the CEO of Tether, rejoins the show for a timely discussion. In this episode: How is Paolo feeling about political trends in the US today? Tether is the 7th-largest buyer of USTs at the sovereign level Paolo’s decision to spend more time in the US What does Paolo make of the stablecoin bills in Congress? Does Tether want to eventually come onshore to the US? Tether is pursuing a Big 4 Audit The effect of Operation Choke Point 2.0 on Tether Tether is moving their HQ to El Salvador Paolo’s thoughts on stablecoins in MiCA How does Tether get to the figure of 400m global users of the...
info_outlineGuy Young, the founder and CEO of Ethena, joins the show to talk crypto-backed stablecoins.
- How Ethena began with an Arthur Hayes blog post
- The origins of synthetic stablecoins on Bitmex
- The difference between Hayes’ Nakadollar and the Ethena design
- Why synthetic stablecoins have failed in the past and how Ethena addresses this
- How staked ETH as the underlying collateral opens up a new design space
- How Ethena mitigates their exposure to exchanges with off-exchange custody
- Guy’s backstory and entrance into crypto
- Why the circumstances are favorable for the success of a synthetic stable today
- Why the short leg of the Ethena position has to rely on CeFi for now
- Where the yield from ETH positive funding ultimately comes from
- Limits to scale on Ethena on the short leg of the trade and ETH staking
- Guy’s explanation for where the yield from being long ETH comes from
- Correlation dynamics between the ETH yield and the funding rate
- Why it’s important that crypto yields are somewhat negatively correlated with tradfi yields
- What protects the system when funding flips negative?
- How the system can react to constraints in ETH funding and ETH staking
- The possibility of adding Bitcoin as a collateral type
- Why Ethena distinguished the stablecoin and the yield-bearing component
- Rebasing versus accruing yield tokens
- How they think about different stETH derivatives
- Ethena versus stETH-backed overcollat stablecoins
- Why the supply of stablecoins is shrinking
- Will major stablecoin issuers become interest bearing?
- Ethena’s regulatory strategy
- The BUSD security analysis from the SEC and how interest bearing affects that
- Why end users deserve yield in exchange for taking on the counterparty risk of holding a stable
- Why Guy is excited by Paypal USD
- Guy’s prediction for stablecoin interest-bearing market cap
Further reading:
- Arthur Hayes, Dust on Crust