VettaFi financial futurist Dave Nadig interviewed Meow CEO Brandon Arvanaghi for Future Proof’s September 11 event, “A New Approach to Short-term Cash Management.”
Seeking yield is a goal that is as old as investing itself. With technology changing, new opportunities for yield abound. Nadig noted that as a financial futurist, it is his job to “try to figure out what’s interesting, new, and different that changes the way we think about our jobs today.”
It is still not easy to buy simple treasuries. Fixed income is one of the more archaic corners of the financial world. Meow is working to bring fixed income, crypto, traditional finance, and whatever an investor might want access to in one simple place.
Arvanaghi sees that taking a first-person account for some institutions’ numbers can often be “an IQ test” but noted optimistically that the “this industry is maturing in front of your eyes.”
Some protocols can help the DeFi space stay liquid and avoid meltdowns. Arvanaghi said, “If I want to borrow USDC, I’d first have to pledge ether or bitcoin, but I’d have to pledge more than I actually bought.”
Meow’s platform provides granularity on a dashboard, for a marginal transaction fee, making it easier for investors to access Treasuries. It offers companies an opportunity to put their idle cash to work, taking advantage of steady yields from Treasuries.
Crypto and Collateral
Arvanaghi thinks that a lot more crypto is now collateralized after some high-profile challenges. “The unsecured lending market will come back, but it will take a while,” he said. “Right now, there’s a lack of trust.”
He also sees some institutions as comfortable with the risk/reward profile for overcollateralized moves. “The less liquid an asset, the more collateral is needed.”
Nadig asked what is coming in the crypto space with the coming ethereum merge and possible regulation. Arvanaghi said that some regulations are needed for blatantly fraudulent actors. “Regulation can only help in my opinion.” He sees crypto as two or three years away from registering any lending platforms, as SEC Chair Gensler doesn’t seem to be in any rush to further legitimize the crypto space.
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