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”.
The search for yield is a goal as old as investing itself. As technology evolves, new opportunities for returns abound. Nadig noted that as a financial futurist, it’s his job “to try to understand what’s interesting, new and different that changes the way we think about our work today.”
It is still not easy to buy single treasury bills. Fixed income is one of the most archaic corners of the financial world. Meow strives to bring fixed income, crypto, traditional finance, and everything an investor might want to access in one place.
Arvanaghi sees that taking a first-person account for certain institutions’ numbers can often be “an IQ test,” but noted optimistically that “this industry is maturing before your eyes.”
Certain protocols can help the DeFi space stay liquid and avoid meltdowns. Arvanaghi said, “If I want to borrow USDCI should pledge ether or bitcoin first, but I should pledge more than what I actually bought.
Meow’s platform offers granularity on a dashboard, with marginal transaction fees, making it easier for investors to access Treasuries. It offers companies the opportunity to put their idle cash to work, taking advantage of the regular returns of Treasury bills.
Arvanaghi thinks a lot more crypto is now guaranteed after some high-level challenges. “The unsecured loan market will come back, but it will take some time,” he said. “Right now, there is a lack of confidence.”
He also considers that some institutions are comfortable with the risk/reward profile of oversized moves. “The less liquid an asset is, the more collateral is needed.”
Nadig asked what is happening in the crypto space with the upcoming Ethereum merger and possible regulation. Arvanaghi said some regulations are needed for obviously fraudulent actors. “Regulation can only help in my opinion.” He sees crypto two or three years away from the registration of any lending platform, as SECOND Chairman Gensler doesn’t seem to be in a rush to further legitimize the crypto space.
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