Jeff Yan's Plan to Bring the Entire Financial Industry Onto Hyperliquid

00:00:02 Speaker 1: Bloomberg Audio Studios. 00:00:04 Speaker 2: Podcasts. 00:00:05 Speaker 1: Radio. 00:00:06 Speaker 2: News. 00:00:18 Speaker 1: Hello and welcome to another episode of the Odd Lots podcast. I'm Joe Weisenthal. 00:00:23 Speaker 3: And I'm Tracy Alloway. 00:00:25 Speaker 1: Tracy, we're recording this. 00:00:27 Speaker 2: Tradie. Yeah. 00:00:29 Speaker 3: That's appropriate for this episode. 00:00:31 Speaker 1: Slip already, tradie. Tracy, we're recording this October 13th. In a couple days, we're going to be in Chicago. And we're going to, as we do when we go to Chicago. talk to some legends of the trading industry. 00:00:43 Speaker 3: Yeah, it's great to go to Chicago. 00:00:45 Speaker 4: We've never done a floor tour of any of the actual trading places in Chicago. 00:00:50 Speaker 3: We should do that. 00:00:51 Speaker 1: Yeah, we should do that. But of course, it's always an exciting time to sort of like talk to the trader community because there are just so many interesting things happening like in the world of trading per se. One of them is, of course, the rise of prediction markets, etc. Essentially, I kind of think like we're in this moment where so many different instruments can be expressed as other instruments in various ways. So you could have stocks that are like tokenized. You can have tokens that are ETF-ized, like crypto tokens that are put in ETFs. You can have prediction markets that actually are sort of like functionally predicting a stock and then they become a stock. Essentially, you can replicate the economics of a stock. So all different types of things where like people are like rejiggering the way You can express a view with this incredible basket of new instruments and platforms to. 00:01:43 Speaker 2: Do it on. 00:01:44 Speaker 4: Financialization on steroids. Can I go on a slight tangent for a second? 00:01:47 Speaker 2: Yeah, sure. 00:01:48 Speaker 3: So I have this media theory that I call the inverse pyramid. 00:01:52 Speaker 2: Yeah. 00:01:52 Speaker 4: And so the way I think about traditional media, it was sort of like a food pyramid, right? And you had original reporting... was the layer at the bottom. So you had sort of old school reporters who were making phone calls. 00:02:04 Speaker 3: Making scoops. 00:02:05 Speaker 4: And then maybe you had in the next rung, you had some people writing editorials or opinion columns on them, maybe a little bit of like video eventually on top. Nowadays, the pyramid is completely inverse where the smallest layer is the original reporting. And then there's so much content built on top of that. I often think about finance today in those terms in the sense that the underlying is kind of the smallest part of the market now. And there are so many new instruments built on top of it, whether it's derivatives, futures and options, or now it's …