Dean Skurka, CEO & President of WonderFi Technologies Inc (WKN: A3C166), was recently a guest on Benzinga's All-Access.
WonderFi operates digital asset platforms trusted by over 1.6 million Canadians. WonderFi’s Bitbuy, Coinsquare and CoinSmart cryptocurrency trading platforms provide Canadians with access to regulated cryptocurrency trading and staking. SmartPay provides cryptocurrency payment processing on a global scale.
The company recently instituted a program of holding Bitcoin and Ethereum on its balance sheet and launched new versions of its apps.
WonderFi operates digital asset platforms trusted by over 1.6 million Canadians. WonderFi’s Bitbuy, Coinsquare and CoinSmart cryptocurrency trading platforms provide Canadians with access to regulated cryptocurrency trading and staking. SmartPay provides cryptocurrency payment processing on a global scale.
The company recently instituted a program of holding Bitcoin and Ethereum on its balance sheet and launched new versions of its apps.
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NewsTranscript
00:00Deed, so great to have you with us today.
00:07Great to be here.
00:08How you doing, man?
00:09Yeah, it's a great time to be alive, isn't it?
00:11Especially in what you're, you know, dealing with in the crypto markets.
00:13Can you give us an overview of Wonderfi?
00:16Absolutely.
00:17Wonderfi is publicly traded on the Toronto Stock Exchange under the symbol WNDR and in
00:21the US under WONDF.
00:25Wonderfi is a global leader in centralized and decentralized financial services and products.
00:31Our flagship brands are Bitbuy and Coinsquare, which are two of Canada's largest regulated
00:36crypto trading platforms, servicing over 1.7 million Canadians with over 1.3 billion in
00:42assets under custody.
00:43And we recently expanded our efforts into the Australia and Asia Pacific region through
00:47the launch of Bitbuy APEC.
00:50Those are a lot of solid numbers, my friend.
00:52Can you tell us about your treasury Bitcoin and Ethereum buying program?
00:56Absolutely.
00:57You know, we thought earlier this year, you know, based on the run up in the Q1 with Bitcoin
01:03breaking all time highs, you know, in this consolidation phase that we saw through Q2,
01:07it was a really good opportunity for Wonderfi to put Bitcoin and Ethereum on the balance
01:12sheet.
01:13You know, this is proven in the short term to be something that has been, you know, the
01:17right decision.
01:19But ultimately, we believe in the industry we service.
01:22We believe in the long term value of Bitcoin and Ethereum, and we want to support the industry
01:26and be a signal for the broader participants that these assets are here to stay.
01:31And there is a lot of long term value in holding on to these assets.
01:34Oh, no, I love that message, Dean.
01:36And I know you just launched new versions of your Bitbuy and Coinsquare apps.
01:40What's new in version 2.0?
01:41Yeah, there's a lot to like, you know, we've really focused on the user experience.
01:45You know, Wonderfi has consolidated five crypto trading platforms over the last two and a
01:50half years.
01:51And through that process, we have spent a lot of time on integrating the users and getting
01:56to a point where we are today, where we operate two brands on one tech stack.
02:01Following that process, we thought it was really important to focus on the actual platform
02:06itself, focus on enhanced trading experiences, additional products and services, a refresh
02:12on the user experience and feel of the platform.
02:15And that, you know, is a step in the direction we're taking more broadly, where we're really
02:20focusing on organic growth and improving the product in a way that will really resonate
02:24with our users.
02:26And another example of that would be today's announcement, where we announced that we have
02:29partnered with Fundstrat, Tom Lee, who I'm sure you're familiar with, and where we're
02:33going to be providing our users in Canada exclusive access to the research and insights
02:39that FSI provides.
02:41Just another example of ways in which we're trying to educate our users, give them information
02:46that will allow them to make more informed decisions and ultimately provide a really
02:50wholesome experience for them to access digital assets.
02:52Dean, I love that.
02:53And as you mentioned, organic growth is such an important thing as well.
02:56And Dean, let's take a look at the macro picture.
02:59What do rate lowerings do for Bitcoin and crypto as a whole?
03:03Yeah, absolutely.
03:04You know, you think back to the last bull market we had, you know, rates were zero.
03:09There was effective money printing going on.
03:12And while we don't have that money printing just yet, we do have rates coming down.
03:16We think that opens up a lot of opportunity for retail participants to feel more comfortable
03:21investing in general, but certainly investing in riskier assets of which today digital assets
03:26certainly fall within.
03:27And so when we think about six months, nine months, 12 months out from where we are today,
03:31assuming that rates will continue to be lowered, we just expect more investable capital to
03:37start flowing back into the digital asset sector.
03:40People will feel more encouraged and more optimistic about the future, and that will
03:44lead them to make more investment decisions.
03:46Ultimately, when you look at where Bitcoin and the digital asset market sits today, there
03:51is a lot to like about the next six to 12 months.
03:54Certainly as rates come down, we think that will be one of the factors that encourages
03:59participants to reenter the market.
04:01Sure.
04:02And by the way, speaking about the future, we got an election coming up in one week from
04:05today.
04:06How do you see it affecting Bitcoin in the short and long terms?
04:10Absolutely.
04:11Yeah, it's a great question.
04:12And it's something that's been talked about a lot recently.
04:14You know, I don't think it's a coincidence that we've seen Trump's odds to win the election.
04:18I believe that around 65, 66% now increase in the run up that Bitcoin's had over the
04:24last few weeks.
04:25When you think back to the election over the last six to 12 months, Trump has been very
04:29vocal about the digital asset industry, trying to promote it from within the United States.
04:35And clearly participants are taking note.
04:37We ultimately think that whoever wins the election, the amount of money that's gone
04:41into lobbying on behalf of this industry, it will ultimately be a net positive moving
04:46forward.
04:47But we can't help but see this clear signs that a Donald Trump win next week would certainly
04:52be a short term catalyst for the digital asset industry.
04:56Many people are expecting if he is successful, that Bitcoin will go right through all time
05:00highs.
05:01And we might hit that sometime today or later this week, assuming we haven't.
05:06People really expect that to be the next meaningful catalyst for the next leg up.
05:09Yeah, no, it's perfect.
05:10You said no matter who wins, it seems like it's definitely a positive for the crypto
05:14market in general with all the attention.
05:16And we did see an influx of capital after the launch of Bitcoin ETFs.
05:20Will this continue?
05:21Do you believe it will accelerate as well?
05:22Yeah, absolutely.
05:23You know, you saw a really strong response in the first quarter of this year to the launch
05:28of these products.
05:30By any measure, these are some of the most successful ETFs that have launched ever.
05:34Gold ETFs, when they launched in 2004, took them about five years to reach $20 billion
05:39of AUM.
05:40You know, Bitcoin ETFs have done that in the first nine months of this year.
05:44When you think about the trajectory from a reputational perspective, you have people
05:49like Blackstone, Fidelity, Franklin Templeton, really supporting this industry in a meaningful
05:53way that's never existed before.
05:55When you think about the exposure and the ease of access that ETFs create for a much
06:01broader audience than existed in crypto previously, we can't help but think about the doors being
06:07blown wide open here.
06:10And when you think about the success that these ETF issuers have had with these products,
06:14you're going to start seeing follow on products and you're going to start seeing them continue
06:17to invest in these products through additional sales channels or sales efforts to continue
06:22piling on the success.
06:24So we think that the narrative in the first half of the year certainly played out as Bitcoin
06:28ran to all time highs.
06:30The narrative subdued a little bit during the last part of the year, but you're starting
06:34to see the narrative pick back up as we start to hit these benchmark numbers like $20 billion
06:38in net asset inflows.
06:41You're going to start to see that continue.
06:43And these products are just the starting point for these broader ETF issuers, like I said.
06:48And so we certainly expect this to play out in the background and continue to be part
06:51of the broader narrative moving forward.
06:53Yeah, definitely a very exciting time in crypto.
06:55And listen, you mentioned that partnership with Fundstrat.
06:58Your stock is up 15% today based on that news and the Bitcoin push, of course, to all time
07:03highs.
07:04What is your outlook on Wonderfi and crypto in general for quarter Q4 and 24 and in 25?
07:10Yeah, absolutely.
07:11So Wonderfi has spent the better part of the last two years consolidating the regulated
07:16market for cryptocurrency trading platforms in Canada.
07:19Through that process, we've acquired five platforms and the user base from Bitstamp,
07:23which was a global participant that left the Canadian market.
07:27Following the consolidation effort that we undertook to bring these platforms onto one
07:31tech stack operating under two brands, we are now focused on international expansion
07:36using Australia as our first entry point to new markets and also with Wonderfi Labs, which
07:42is focused on building out innovative products that exist on chain.
07:46Over the last part of the year, we have seen a really big trend where retail participants
07:50are becoming more and more comfortable interacting on chain.
07:54Coinbase through their wallet and base would be a really good example of that.
07:58We believe that Wonderfi is very well positioned to build out these products and services with
08:03an overall focus on trust and transparency to bring the next cohort of retail participants
08:09globally on chain.
08:11And so when you think about 2025, we expect Wonderfi to really build out its presence
08:15internationally, starting with Australia, but we're currently evaluating other jurisdictions
08:20to move into as well and developing a real presence on chain through Wonderfi Labs.
08:26And so when you think back, think about Wonderfi in 2025 and beyond, you're going to talk about
08:31a global cryptocurrency platform that offers services across decentralized and decentralized
08:38ecosystems, all focused around providing trusted, transparent and great products for the global
08:44audience that is continuing to show interest in the digital asset industry.
08:47I love it.
08:48What a time to be alive.
08:49Dean Skirka, the CEO and president of Wonderfi.
08:53Thank you so much for joining me on All Access.
08:54It was a fascinating conversation.
08:56Absolutely happy to be here and come back anytime.