Coinbase Global, Inc. (NASDAQ:COIN) Morgan Stanley US Financials, Payments & CRE Conference Transcript June 13, 2022 3:15 PM ET
Brett Tejpaul – Head, Coinbase Institutional
Conference Call Participants
Mike Cyprys – Morgan Stanley
All right. Before we get started for important disclosures, please see the Morgan Stanley Research Disclosure website at morganstanley.com/research disclosures. If you have any questions, please reach out to the Morgan Stanley sales representative.
I also has been asked to read the Safe Harbor statement as well, before we get started to remind you, I like to remind you too, that today’s webcast, Brett, may be making forward-looking statements. Actual results may vary materially from today’s statements. Information concerning risks, uncertainties and other factors could cause these results to differ is included in the company’s SEC filings.
Our discussion today also includes references to certain non-GAAP financial measures. Reconciliation to the most directly comparable GAAP financial measures are provided in the Shareholder Letter on the company’s Investor Relations website. Non-GAAP financial measures should be considered in addition to but not a substitute for GAAP measures. That probably sounds familiar.
That’s the exciting part.
Yeah. First time I’ve had to read something like that. All right. Good afternoon, everyone. I’m Mike Cyprys, Morgan Stanley’s Brokers, Asset Managers and Exchanges Analyst, and welcome to our fireside chat with Coinbase. And it’s my pleasure to welcome, Brett Tejpaul, Head of Institutional for Coinbase.
As many of you know, Coinbase is a leading global provider of end-to-end financial infrastructure and technology for the crypto economy. Brett, thanks for joining us today.
Excited to be here. Thank you.
Q – Mike Cyprys
Great. Very timely. So why don’t we dig right in? When most people think of Coinbase, they think of the Retail direct-to-consumer business. But there’s also a fast-growing and increasingly important Institutional business that’s under the hood. So can you help contextualize this Institutional business that you oversee and how meaningful is this business?
Sure. So just to level set, I don’t know, I’ve been covering this conference for many, many years. Thank you for having me here. Before I joined Coinbase, I was 25 years in Investment Banking, Sales and Trading. I think is relevant for this crew, because the world I use and definitions, I think, should be familiar, 17 years at Barclays and nine years at JPMorgan.
To try and go to 50,000 feet, so we can level set and dial into the Institutional business. I want to give you a framework for thinking about us. Think about sort of three buckets. The first one is individuals and that’s really the Retail business. And when — I won’t speak very much about it, but that’s probably what we’re best known for. And so I want you to think about Coinbase Pro, Coinbase Consumer as the two main apps that that drive that dialog.
The second bucket is Institutions, and that’s really what I represent. We’ll talk more about the Prime offering.
And then the third bucket is a combination of, let’s call it, businesses and developers. So when I say businesses, I mean, applications like Coinbase Commerce, Coinbase Pay, and for developers, we’ll talk about Coinbase Cloud. Think about that as placeholder for later, infrastructure-as-a-service where developers can come to make apps.
So if I then zero into Coinbase Prime. The Coinbase Prime is an entity. It’s a one stop shop for institutions to onboard into crypto. Coinbase Trust Company is regulated by the New York Department of Financial Services. It meets the definition of a qualified custodian. We are audited by Deloitte & Touche. We have SOC 2 Type 2 and SOC 1 Type 2 audit reports that support that entity.
In terms of what it offers, like I said before, it’s integrated trading and custody in one place. We’ll talk more about why that’s important to have both of those features combined together. We have data and analytics, so pre-trade and post-trade. We have smart order routing, so we can access, you’re not captive to Coinbase Exchange and so we access multiple pools of liquidity. We have a full algo set that allows you to tailor make or express your customized view of how you want to present yourself to the marketplace by using things like TWAP and a whole suite of different algorithms.
Also on the same platform, we offer financing. And so, the financing, we’ll talk more about that in a bit. But it’s more really about giving large institutions the ability to move with speed. So think more intraday financing accommodations.
With respect to the services you get, we do have a data offering, so you can download data. We have a high touch Institutional account management team. So our biggest clients are actually covered by a network of people and got lots more to discuss really.
In terms of who we serve. It’s the full spectrum of Institutional clients, and for me, something that’s a little bit new is also the inclusion of the ultra-high net worth category. And so it covers the full gamut, including high net worth, pensions, endowments, Institutional asset managers, hedge funds, pension, sovereigns, public corporates, private corporates, RAS, if I haven’t already said that challenger banks and so on and so forth. So that’s a – the 50,000 foot level, Mike.
Great. So full set of clients, broad set of offerings there. Have you noticed any sort of noticeable changes in demand or interest just given the erosion in market conditions so far this year?
Well, I’d say, the secular trend in crypto adoption is solid and secure. Institutions are slow moving giant. We’ve as an indication, I’ve been at Coinbase for two-and-a-half years, I’ve been in dialogue with some large institutions for actually all that time. We’ve been going through now, some clients now have 80 and 100-person crypto digital teams working their way through operational due diligence.
And so, in the past, I would say, two-and-a-half years, when I first got to Coinbase, the value proposition was sort of by not the — without the use of smart order routing and store safely. Now it’s buy, sell, store, risk manage finance, consume analytics, data and form your own risk management strategy. So the secular trends are there.
In addition to all that, we’ve seen a new rise of Institutional account interest in adopting crypto, if you include the inclusion of NFTs and then stable coins. And so, most of my time at Coinbase so far has been welcoming institutions that want to put capital at risk into crypto for a variety of different strategies.
But there’s this new door that’s opened, which is thinking about the utility cases for crypto. So I have quite a lot of payments platforms, challenger banks, large global financial institutions, exchanges of traditional exchanges, that are all interested in actually thinking through the application of crypto technology to try and think through how to collapse things like settlement time. They’re attracted by the immutable settlement on the blockchain.
And so, no, these conversations don’t happen in an instant. Of course, we — every now and then we get someone who writes in the door that says, I need to suddenly buy Bitcoin or something, we’re happy to provide that accommodation. But mostly, I’d say, the institutions have broad ranging long pretty sophisticated digital adoption plans.
If the NFT space, which is probably the newest to me, like I don’t have the experience as a Chief Marketing Officer, but it’s kind of interesting. Well, recently, instead of speaking to CIOs to start the dialogue, I’ll be introduced to a global retailer and as the Chief Marketing Officer. And the Chief Marketing Officer says, hey, we’re doing an NFT drop and we need to figure out like this Ethereum stuff and how do we do this, and I guess, we need to own some cryptocurrency. So can you help us?
And so it’s kind of wild to watch. But in many cases, they have tight timeframes. And so, we’ve actually have applications to help them onboard the Prime, buy some Ethereum, figured out how to do their NFT drop, figure out new ways to engage with their client base, so secular trends are indeed intact.
Great. Why don’t we dive in a little bit on the Institutional product offering, maybe you could talk a little bit about how you built out the platform? It’s been a combination I know of organic and inorganic, we can probably touch upon a number of the different pieces and we’ll dive right in?
Sure. So the point that I want to emphasize is, we built Coinbase Institutional to be the one stop shop. And so it wasn’t that way at the beginning, but we needed to build Prime, the foundational level — the foundational elements we able to have an integrated experience to buy and store.
Previous to that you could, the ethos of crypto is being able to consume all or none of the activities in any one place. But if you buy over here and you sell over there and you finance over there, you’ll find you wind up accumulating all sorts of operational risks as you have all these different hops. And so by design, what we’ve done is a front to back offering, where we try to minimize the amount of operational risk that you take.
So, for example, a lot of the, particularly the, I would say the, high frequency crowd or the active crowd would look at Coinbase Exchange as one destination, but you’re not captive to that destination. And often funds will want to say, well, we want to do our own smart order routing. And so that actually requires them to take on the summation of all the operational risk of poking into and complexity poking into each one of those exchanges. So we try to make it easy. You have one stop shop into Coinbase, Coinbase space, it’s a marketplace.
With respect to sort of balancing security and speed with which you want to trade, so how do you reconcile those two things? Well, we’ve got the best security that I know of in the marketplace with our cold storage, but at the same time, you also want to be able to trade and react to a headline.
So we provide short dated financing for institutions that may hold large sums in cold storage. Imagine a bunch of Bitcoins sitting offline in cold storage and wanted to be able to trade on a headline from a comment made. Client would initiate a restore from that wallet and we make a secure short-term loan to be able to facilitate the sale of Bitcoin real time. So that’s all sort of operating at scale.
In addition, we just purchased FairX, which has been rebranded as Coinbase Derivatives. That is a DCM regulated by the CFTC. We’ve announced our ambitions to want to be able to offer margins cleared Bitcoin and Ethereum. We’ve also applied for our FCM license.
And so one of the things that I would underscore here is and we’ll touch on it again later is our commitment to KYC/AML regulatory adherence. And so what we could have done and didn’t, is built an offshore derivative exchange to go after at the moment and the flows at the time. Instead, we’re taking at a measured pace and we’ve opted into buying a regulated entity and continuing to operate it, and then safely launch regulated, cleared futures in the U.S.
Number of areas I want to dig in on that, maybe just starting out on sort of the Prime area. We would kind of look at the traditional financial world today, it would seem like there’s a lot of opportunity to rebuild sort of that in the crypto world, right, with financing, custody, derivatives, and so forth and so on. So where are we today, what’s that roadmap in terms of building out and what’s your vision for Coinbase?
One of the best comment that I’ve received lately was, made me sort of smile year-to-year was got done with the demo, I would love to give all of you a demo of watching the algo, work in real-time is, Brett, it seems like you’ve built something that pretty much replicates the experience we have, the familiarity we have with trading FX and equities.
And so, I would say, we’re at a point now where I think the experience is a familiar one. You’ve a familiar bunch of service providers, lawyers, accountants, audit reports, regulatory compliance. We meet to due — the exacting due diligence standards of our largest and most sophisticated accounts.
And so, I would say, we’re — people say we’re at the beginning, but I think we’re at a point now where crypto as an asset class has been well established. And I’m seeing more and more capital deployment actually go towards the asset class. And hopefully, even with this bout of volatility, we’ll see an increase in capital at risk and trading activity.
One thing I’ve mentioned, as a hallmark of the fact that we have built something that that operates at scale is, initially, there’s been a change to the client base. So initially, it was, I would say, forward leaning, hedge funds, family offices in particular, and of course, the venture crowd.
In the past year, though, we’ve seen an appearing of the client base. And so now we’re talking to actually engage with, I would say, a third, more than half of the largest hedge funds in the world, even the asset management community has come in. So we’ve seen some notable names if you’re interested, we can give a couple examples. But I would say, the largest asset managers in the world are now in.
And now over the course the past, I’d say, six months, we’ve seen traditional stat arb shots come in, quantitative shops come in, the very, very large ones. And so when they’re on the platform and active is probably the best demonstration that we’ve built something that works that they are attracted to.
One of the sort of differentiating factors just back to what we built in terms of Prime, I should call it out, is our agency-only model. And so the way our order routing works is that you are — all of you are at the sort of in the driver’s seat, directing how exactly you want order flow to go to the marketplace, you can, of course, call my team, I have an OTC team that trades 24×7, they can suggest to you how you might want to consider presenting yourself to the marketplace, but you have a single point of entry into it and we don’t make markets.
And so one of the defining features about why I think hedge funds who may be competing with each other for absolute returns come to us is because we don’t have an internal market maker that’s competing with the order flow, that’s in the book.
On derivatives, you mentioned, Fair Exchange acquisition, maybe just shift to that for just a moment. That’s going to enable you to offer crypto derivatives. Could you just talk about the opportunity set that you see with derivatives for your Institutional customers and what are some of the next steps and timing you think for bringing that to the marketplace?
I feel a lot of a, I think, what we’re doing in terms of building and making recommendations on where we go, is in part, I think, a function of all the time I spent in traditional finance, as we like to call it.
So I started in 1994 JPMorgan as a derivative trader. And if I reflect about the formation of markets through that time period, I remember exotic interest rates and interest rates, I remember credit derivatives, I remember equity derivatives, and go on and on. But really, derivatives wind up being the more liquid between derivatives and spot.
It is largely true if you look at the total crypto universe, but it’s not true specifically in U.S. regulated derivatives. And so, I really do think that there’s a big immaterial opportunity set for us, particularly here in the U.S. to enable derivative trading for both Retail and Institution in a regulated and compliant way here.
Yeah. How do you think about competition, right, namely, against, CME, which has a number of different derivative contracts ready on their exchange? I guess what sort of benefits would you see around having both the spot and derivatives on the same platform?
Great question. So I think the answer to that question, we sort of have to put the spotlight on something else for a second. So I remember this, because in my first couple of weeks, one of my old clients who’s a famous founder of hedge fund called, as he normally wouldn’t say, hey, Brett, buy me $50 million of Bitcoin. And I said, well, can you wire me $50 million, please. And what do you mean? And I said that, well, that’s kind of how crypto works, right? You have to pre-fund your trades.
And so when you think about the requirements that have to pre-fund your trades, that means you’re relying on today’s sort of fiat currency pipes that work between certain hours of the day to actually pre-fund trades.
Right there, we’ve got a big restricted — restriction in your ability to try and trade a 24×7 marketplace, but only being able to sort of wire in money from time-to-time when the banking systems open, right?
So when thinking through the detail around capital efficiency and return on investment, you’ve got to think through, well, how do you trade and scale up positions and trade on weekends and nights with the banking systems not open and how do you get the right amount of leverage into your portfolio.
So when you think through what today’s Prime brokers offer, they offer — traditional Prime brokers they offer a single entry point to the marketplace, they offer financing and intermediation, capital efficiency across asset margining.
And so I very much think that that’s where we’re headed, because we need to make the allocation, the crypto is volatile, for sure, we know that. So it’s attractive for many reasons. But also the efficiency of capital is important.
And so I see a world in where you can have benefit. From a capital perspective, if you elect to cluster your activity with someone like ourselves, who can be able to recognize a long position, a short position, a futures position, a derivative position and then think about that in terms of portfolio margining.
Speaking of derivatives, let’s talk about the FTX proposal that’s out there, direct-to-customer, non-intermediated clearing approach, innovative clearing model that they have out there with. I guess, what’s your views on that? Is that something that you would love to sort of incorporate? Some institutions are concerned about the auto liquidation feature of that proposal? I guess, do you see any potential to sort of solve for that?
So one of the things that, I think, frustrates me a little bit and it’s a function of the marketplace still being young and it’s a function of the way in which sort of Retail trade, are these sort of liquidation moments. And when I think through the prospect of how volatile crypto is today and a certain amount of volatility, I think, is helpful.
But I sometimes wonder whether we exasperate the highs and lows with respect to how liquidations work. And so one of my thesis is, is that the more Institutional capital that comes into the marketplace, I think we’ll have a little bit more less high peaks and low values.
Also, when I observe trading behavior between Institutions and Retail, just having traded a Retail book once upon a time as a bond trader and then spent most of my life trading Institutional health books, the trading behavior is actually quite different. And so seeing institutions come into buying the dip in size is certainly something that I look forward to.
With respect to our own plans on — so we’ve applied for an FCM license ourselves. We’re waiting — I wish it came sooner than later. It’ll come in due course. But I do think that the operating model that we’re pursuing, which is consistent with sort of how the world works today, will be a great in a functional one, where Retail customers come through an FCM to eventually participate on the exchange.
On the broader topic of regulation, Mike, I think, Coinbase, if you haven’t seen it, love to direct you to the blog, but we’ve written for and asked for and hope for a new crypto regulator. I don’t want to necessarily spend too much time on that, but love to redirect you to this group to the blog, where it’d be awesome to have one new crypto regulator that may not be practical.
So I think my own pragmatic personal view is my life at Coinbase will — in many ways replicate my life at Barclays and JPMorgan, where I still carry my licenses. We have multiple broker dealers that operate across the world and multiple jurisdictions, and we wind up serving multiple regulators at all times and being compliant. So that’s my guess in terms of where we’re headed.
Great. Shifting over to your customer set, I guess, where would you say you’re having the most traction versus the least? And when you look at the customers and how they’re trading with you, I guess, of the ones that do trade with you, what portion also custody with you versus borrow and stake with you?
Yeah. So initially, I would say, we had quite a lot of customers. When I say initial, I mean, going back two and a half years, what seems like 10 years ago. Initially, I would say, the value proposition was really safety and security in terms of the custodial offering.
When we added smart order routing and when certainly now that we built Prime, and we have everything in one place, what I’m finding is that more and more were becoming the, in many cases, exclusive counterparty. But if not exclusive than the majority, though, we have quite a number of clients that actually trade exclusively through us and they may will likely be their majority custodian.
If I think through some of the examples of where we are in terms of Institutional adoption. Let’s start with the Asset Management Committee because it’s top of mind, certainly grey scale, was an early starter. To accumulate quite a lot of assets and crypto, they’ve called for an ETF. I hope it comes soon. We’ve added our support to there to lobby for it.
If I widen the aperture outside of the U.S. and I look internationally, ETFs are forming, I think, Australia went live last week, certainly have quite a few in Europe as well. So in many of those cases, Coinbase is also either the exclusive or the majority trading custodial partner.
If I think through hedge funds, I think, there’s been a phenomenon that’s happened where it was really early and often it was macro hedge funds. And what I’ve seen in the course the past 18 months is that, more and more of the multi-strat funds have piled in and now we’re getting systematic funds instead arb and so I think that’s kind of an increasing pace of adoption within the hedge fund crew, for sure.
Family offices have kind of steadily. There’s been a steady drumbeat of family offices doing multi-generational planning. And so that, I would say, like the baseline of activity continues to sort of track upwards and to the right.
Sovereign wealth is in conversation. We have yet to see I think a large sovereign wealth client sort of announced their presence in the space, but I think we’ll probably have opportunity to see that happen in the next year to 18 months.
If I think through banks and challenger banks. So, even the largest U.S. banks have all announced their intention to be involved in this space. We’ve seen quite a bit of headlines out of both Goldman and JPMorgan. Lovely to see, I would welcome them all involved in the space for sure. I think initially one of the binding constraints they face is on capital and OCC approval. And so I do hope for the ecosystem to grow and I would welcome their more active participation in the space.
Away from the traditional banks, we’ve seen challenger banks. So Revolut comes to mind. And we’re seeing more and more challenger banks wanting to speak to Coinbase to use our pipes and plumbing and infrastructure to be able to enable their end clients the ability to buy, sell, store, finance, stake, crypto, as I said, I really quickly, buy, sell, store.
And so more and more of the business that I’m looking after, most of which we’re talking, about 90% of what I do is welcome capital directly onto the Prime platform, 10% today is, what I’d say, is like the B2B offering. So that’s enabling a stack of Coinbase API’s to pipe through to your own native app or for you to build your own integration.
And so if I were to guess where what that that would look like in a couple years, it’s probably flip flop, where more and more businesses, challenger banks, and otherwise, will want to use our own infrastructure, because they don’t have their own native capabilities today to be able to create new experiences.
I guess that leaves our last camp, which is corporates. And we had quite notable activity from leaders like MSTR. I would say, being more, not just Bitcoin, but crypto on the treasuries of corporates feels likely to me, but more so because of either the fact that they want to, they see a value to actually making a statement to the marketplace is, I support this asset class, I find social good and I’ve gotten some maybe modest allocation to the asset class in a world where they have sort of cash and too much of it. But the more so because I see a lot of corporates come in to work through the use cases on NFT’s and stable coins.
And so there are certainly some corporates that come in and say, hey, we’ve arrived, we’re a tech forward company, we want to embrace crypto, we want to do payroll, commerce, a list of everything, they’ll onboard to Prime and we’ll get that done for them. But large global corporates that haven’t quite made the leap into crypto are likely to want to say well, wind up having a little bit of crypto on our balance sheet, we might convert it back to fiat. So we don’t take the price risk associated with it. But we want new ways to engage with our extended clients.
And so I think like the use case that comes to mind is NFT’s. And so they need the native capabilities to be able to engage with blockchains, buy, sell, store crypto and as a consequence of performing those operations are likely to have some modest amount of crypto on their balance sheet.
And we’ll get to NFT’s in just a moment, but I guess, how do you see the corporation’s navigating any sort of accounting or reporting challenges?
So far, I mean, there’s a select few that where the accounting for cryptocurrency is really quite important, including Coinbase as well. I understand there are conversations happening with FASB and others to sort of think through the accounting model. But it hasn’t really been a binding constraint for me.
And so when — I’ve not encountered someone who said, I would love to participate in crypto except for the accounting. There’s other reasons that have come up, but accounting has not really been the binding constraint.
So I kind of see accounting alongside regulation, which is one of those things which continues to sort of develop over time. I think the trend is positive, it feels like the world is, like, I said, the secular trends and crypto adoption continue. So I feel like we’ll be in a more accommodating place on both of those sometime soon.
Great. Why don’t we talk about the competitive landscape? I guess, what’s unique about Coinbase is offering today relative to, say, some of the other crypto native companies out there and when you look at the competition potential for more traditional financial institutions, right, they have deep pockets. So I guess where could they surprise to the upside? What are they doing well and what challenges do you see them facing?
So that’s like all questioning like…
Yeah. So they got the traditional financial, institutions and then they got the crypto native guys?
Right. So competitive landscape. So I think we’re, I don’t know, I — we might be in a category of one. Crypto is the only thing that we do. We don’t have the stated ambition of trading stocks and bonds and different things. So crypto is really at the core of what we do and it’s nice because it’s a unifying thing and we’re not distracted by trying to disrupt the whole world with crypto technology. So crypto is all we do.
The other thing that’s defining for us is that, it truly is a one stop shop. That we’ve talked about being able to do all the things, that you want to do with financial assets, buy, sell, store, stake, finance, risk managed, so on and so forth, consume data. But also you’re connected through our ecosystem into the cloud, into Web3.
And so I feel like through the passage of time, we’ve seen a sort of a broadening of activity. So it used to be the case that someone would onboard, buy some bitcoin, sit passively, then as Bitcoin ease and probably 10 other cryptocurrencies and then as Bitcoin ease, 10 of the currencies and then staking, then adding financing and so I just see this continuum and so I feel like Coinbase is a long-term partner for people that want to consider crypto adoption to continue to grow over time. So, clearly, I think, a distinctive advantage to us.
The third bit that is distinctive is and this kind of is a bridge to your question about incumbents and financial players is, as we offer our infrastructure-as-a-service. And so not everyone can scramble all at the same time to become cryptographic engineers and figure out how to how to create your own native capability, it’s a very, very tall ask and so — and crypto moves quickly as well. So maybe by the time that you are able to staff and figure out how to do MPC and some of these crypto native activities, the world may have moved on by then.
So I’m hoping that we can invite the world of interested parties to actually use our infrastructure-as-a-service as a place to build. There’s no reason why 1000 institutions all have to build their own cold storage capabilities.
And that’s sort of — to hit the last part about, how can the incumbents in traditional finance potentially surprise us. And so one of the things that I’ve been encouraged to see is, maybe finding ways, if not direct capital deployment day one, finding other ways to do it. So I’ve seen the onboarding of crypto funds to U.S. private banking, wealth platforms, for example, as an access trade for their well clients to buy or participate in crypto.
I’ve seen the markets businesses in many places and the Commercial banks and Retail banks want to think about lending and giving financing into crypto. So I’m encouraged to see that activity, because when I see it, it’s like a forcing function, because one of the large banks has to understand, what is its value? How do we have a loan outstanding that has on an asset that’s volatile, that requires 24×7 margin calls and top ups and then, of course, ultimately, liquidation if necessary.
And so in those moments of — those exploratory moments of getting someone to consider doing asset-based lending, you wind up educating 50 people at an institution that go through, well, all the considerations that they must, including KYC and AML, and so on and so forth.
Corporates and NFTs, let’s come back to that.
An area of growth, what’s driving that on the corporate side and can you expand upon how Coinbase is helping address those needs?
Yeah. I had a like a really fun sort of fall for you few weeks that spilled into January, February and now the conversations have just continued. But we have these incomings from all these NFL owners and global franchise owners that we’re all interested in figuring out how there’s a new engagement model between, the owners of the teams themselves, the athletes and the fan base.
And the use case probably sent around on is probably, it’s a bit boring, but applicable, is thinking through the application of secondary ticket sales, right? And thinking how — the franchisees owners don’t participate when tickets are sold again.
And so one of the use cases that the owners in the league are thinking through, not specifically NFL, but all sports leagues are thinking through is how to use NFTs combined with some smart contracts to identify situations where they can continue to earn a clip when tickets continue to turn over and get passed on in the ecosystem. So that’s one use case.
Another one is, I’d say, more engagement and so if you can and this has happened quite a lot, I’ve seen it — I’ve seen New York City restaurants talk about, I’ve seen golf courses talk about it and begin to put it in action. But it’s a new way of demonstrating that you own something, you follow something, as a consequence, if you own this NFT, you can come to the private after the game celebration or the pre-game this or — and you can begin to have, games can have a more direct dialogue and players have more direct dialogue with fan engagement.
And so I’ve seen quite a lot happen there. It’s really interesting. It’s not my area of expertise. So I can provide the boring stuff, which is the pipes, the plumbing and sort of coached him how to do this stuff. But I turn over the marketing and fan engagement to other people.
In the sense of community.
That’s the community. Yeah.
Okay. Great. Well, we’re going to wrap up here. We have got a minute and a half left, maybe you can condense sort of your priorities for the rest of the year, as you kind of look out 2022 and into 2023?
Yeah. Listen, I would love an invitation to continue to educate everyone in the room and go through. Crypto isn’t something that’s learned in a passing moment. It’s not something that you wake up and decide to, hey, let’s get involved. It’s something you need to work at.
And so, I would just love to extend the invitation to everyone the room to continue to work with us, to think through how you can find use cases that are applicable to who you are. So my priorities, for sure, are continuing to get client acquisition to come into the door to grow familiar and comfortable with having a capital allocation in crypto.
And if not capital allocation in crypto, let’s think through the utility cases for the application, like we talk to have a stable coins and NFTs in other parts and maybe thinking through how to disrupt traditional settlement systems, for example, for global financial health. So there are definitely applications of crypto that can help improve our overall sort of financial health of the ecosystem.
So, with that, I would say, thank you very much for having me here. We’d love to be invited by any or all of you to tell you more about Coinbase Institutional platform.
Great. Well, thanks so much, Brett. Really appreciate it.
Thanks, Mike. Great.