>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is bloomberg technology with emily chang. i am carolyn hyde in new york. this is bloomberg technology. coming up, the new york city subway shooting. a suspect has been arrested and faces terrorism charges. meanwhile, 280% of a completely

fake press release claimed tesla had bought the nevada minor. and this crypto startup, circulated $400 million in funding from blackrock and fidelity. first and foremost, we bring you a story close to home for us. the biggest story of the day. those were the words from eric adams, we got him. >> they stopped mr. james at the corner of st. mark's place and 1st avenue in manhattan. course he was taken into custody without incident has been transformed -- transported to an

nypd facility. twice he has nine arrests in new york dating back to 1982. joining now is our correspondent. first and foremost, 30 hours this man was on the street. had this been deemed a success or not? in the aftermath of the attack, it was reported that the cameras were out. james, the suspected shooter was said to have left the station and entered another station at

9:15 am. they have not been able to explain where the first one was. >> all of this to be looking at her and insuring, however, technology here -- just the way in which we as members of the public sent messages to our phones. we give tips and the like. do you think this is also a test in the way of crime prevention with a relatively new administration here in new york? >> new york mayor adams says he

would like to use even more technology to help prevent crime. it is not clear what he plans to do. there was a lot of talk about the cameras at the subway station. >> in the preliminary budget, the police budget remains flat every year. i guess what that means is the headcount is staying the same. at least from the public budget, that is not where the technology will come from but there are other places.

we did great reporting in terms of the leadership of the city. we want to take that justice perspective here. can, your perspective, what has been notable is the federal prosecution that seems to be unfolding. it is a terrorism related charge. click the reason for that in my opinion is whether it is on a

train or any other modes of transportation, it carries with it a life sentence. up to a life sentence. that is far greater than he would get for this mass shooting he did. i think the decision to go federal on this is much more of the exposure for the charge. >> we are a global network and sometimes federal versus local doesn't make a lot of sense. i am the daughter of lawyers in the u.k.. there are prosecutions done by the crown. what is the distinction between local law enforcement, federal prosecution and how do you know which one is going to take charge? >> in this particular case, you saw there was a real investment between the state, local and federal law. this was the lead agency on that case.

there was input from the fbi, the state employees, atf and law enforcement was all working together. when it comes time to prosecute this case, the district attorney's office works with the u.s. attorney's office to decide which way the case is going to go but i don't want you to get the impression that they were fighting among one another. instead, the decision was made to go federally because of the potential exposure. >> we are all innocent before being proven guilty. it was interesting in the press conference, some labor was made of the criminal acts that occurred back in the 90's in the state of you nor -- new york, philadelphia, new jersey, what will that be made of in court? >> it shows a propensity to do violence, a propensity to do criminal acts, the person's criminal history is always brought up.

this is just routine that you would discuss prior criminal history. >> we are a technology show and what has been interesting and what has been made up in the media who is trying to understand who frank james is and what his motives were, it is also questioning what his state of mind was and people looking at youtube evidence. people looking at his social media posts. how admissible is that in court? >> it is part of the public record that he has posted on youtube. there is no expectation of privacy there. anything you put on youtube would be admissible. but i think this case shows very much that we live in a surveillance society. there were cameras everywhere. the camera on the platform failed by the combination of a quick investigation was helpful to identify him.

his picture was put up and that was the thing that either got him to call the crime stoppers number himself or some individual recognizes him contacted the police. it is not clear which way that actually happened at this moment. >> really great to have your expertise. a lot of time spent interlinking the private sector with the criminal justice sector. we thank you. coming up, an invitation to elon musk again. we will look at the wild ride it had on wednesday. this is bloomberg. ♪

>> let's get to another elon musk moment on twitter wednesday. it is fascinating overall. we are once again seeing shares of lithium minor. tesla had acquired the nevada company. ed ludlow spotted something there. he joined us -- joins us again now. talk to us about tesla, elon musk, what actually happened here. >> even by musk and tesla standards, this was odd. i saw some tweets from some of the community that follows elon musk and twitter. some of the tesla owners and shareholders. they were sharing screen grabs and just after 11:30 eastern,

the stocks jumped. i looked at the image of the press release and this is a well-known pr company. they don't represent tesla. they don't represent written corporations. it was a fake release. what is astonishing is the release was published yesterday, on tuesday and the market reacting, look at that chart on wednesday. >> official responses, actual technical official responses coming from the company? >> yes. we got this from tom lewis who called this fake news, his words. no deal with tesla. tesla did not respond, they don't have this that expanded in 2020. we issued a press release.

saying contrary to what had been reported, there was no discussion with tesla but here is the interesting part. they go on to say none of the employees went on to go to tesla. but this is an area that elon musk is interested in. maybe they are just shooting their shot. >> he has talked about on twitter lithium minor's. >> lithium is a really cool component that goes into this. elon musk tweeted quite recently that it is not that there isn't enough supplies, there is abundant supply. it is the extraction. i am afraid this was fake news. there is no deal between tesla and lithium corporation. >> we thank you.

meanwhile, speaking of elon musk using twitter, let's talk about who used to lead twitter. jack dorsey. he has become more and more focused on crypto. in particular, bitcoin. >> if bitcoin existed before twitter started, i think we would see completely different business models. i think we would see a lot less of the issues on advertising systems that they can bring up in terms of privacy. >> jack dorsey block ceo of course. now, for more on this, i want to bring in our bloomberg big tech. it is a beautifully written story, a lot of obnoxiousness that goes into this. talk to us about jack dorsey and when the love for bitcoin really

first arose. >> it came to the forefront when jack dorsey went on a trip to africa. he is described as the spiritual leader of bitcoin. the idea that it has some sort of decentralized vision for how it can change the world. >> he is not just with it.

he is with intact. a company that may be embracing new forms of payment. in that respect, what does this look like within the bitcoin scheme? >> he is really trying to make block a leader in the mass acceptance of bitcoin. even going so far as to say that block will support people adding bitcoin, mining properties in their own home. this is where he thinks the future is headed. jared wegner points this out, when he sees where the future is headed, he tends to be right. he does not always execute on that vision perfectly but he was one of the first investors in instagram. this was the format that was

later popularized with tiktok. he picks where the future is going ahead. what people are saying is if he is pointing toward bitcoin as the future, we better pay attention to that. >> it is a great read, a great headline, great editing. coming up, with more young people discovering the stock market, we will speak about how the startup is trying to make this more accessible. that is next, this is bloomberg. ♪

>> this is bloomberg technology. i am caroline hyde. this drew them to the stock

market. an interesting place to be putting your money. targeting these rookie investors , trying to allow normal people. really interesting about the focus on financial inclusion at this moment. there is this word about the euphoria that came in. is that a pent-up desire? >> i think that 2020 was a very interesting year. as you mentioned, people are coming back to their normal days. they don't have the time to think about their portfolio to do this. what is important right now is

to have solutions that enable them to start this. >> how is this helping you have a diversified portfolio? >> this is another digital investing platform. just a number of weeks before having to go through the burden of reinventing the wheel from scratch. everyone will be able to start offering a more accessible way to invest.

anyone would have the opportunity to start their investing journey through these platforms. >> it is the financial regulation. >> it is. part of what we do at atomic is we take over that regulatory burden to offer investing without them having to build up the regulatory expertise to manage that because we cover that for them. >> i know you are looking to move back to the u.s.. i have moved to the u.s. in 2018 and was dumbfounded by the lack of thin tech innovation. many thought it was really being born in london and europe because the regulation was there. if that is the case, why do you think there are more of them then we are used to?

close by and large, the financial service -- they provided a monolithic solution. we saw it happen over the last few years. this was overbuilding platforms that are targeted and we are seeing the exposure of this over the last couple of months. we were able to speak to help people have financial platforms that were not available to them. >> david, you sit here with a fabulous education and a focus on what is deeply complex. i know how even for me, intimidating the road of crypto is. that is almost what wall street

tried to build up back in the days of 2008. how intimidating is that for people who really are in the low income spaces that we want to see included? >> very intimidating. we see that most people don't feel investing is for them. many people are still very risk-averse. many people require significant handholding. there is an educational gap when it comes to investing that has to be addressed in this country. >> is that about education? i see some really great content on tiktok and twitter. i hope that -- it all seems sort of like rubbish. this will be for investing

education to be part of the high school curriculum so people can learn what investing is and is not. this is really about diversification. i think that would be what would be best. what we are seeing is quite interesting. the platform is targeting people in the past. allowing people to participate in investing and educate those people. i think work has to be done through social media and influencers. if someone is receiving investing tips, it is likely they will end up with a basket of individual securities and asset classes that are not diversified. not only having voices that are speaking about the benefits of the future, diversification and

other principles of investing -- >> well said. so much more coming up in the world of technology and beyond. this is bloomberg. ♪

>> this is bluebird technology. it was a strong inning for the tech stocks today. let's get an update from ed ludlum. >> carrie: it's been interesting more than at any point in the last four years. the nasdaq 100 up to percentage points. the market trying to think about inflation. are we paring back are backed for federal rate hikes? how aggressive will they be? we saw out performance and u.s. listed shares of chinese tech

companies. snapping its worst run since december to rise 3%. slight outperformance in semiconductors. yields coming down over the course of a number of days. 2.7% on the u.s. 10 year. stocks on the move on wednesday as well. some of the best performers were the nasdaq 100. no rhyme or reason. airbnb has been a juggernaut over the last 18 months, really impressive performance. zoom doing well. we are looking at activision down half a percentage point. the attorney for the state of california resigned out of basically protest that there was some interference from gavin newsom over the activision discrimination case that's

currently ongoing. raising questions about the outcome of that case after that resignation. caroline: thank you. talking of the court, we want to go back to another story at bloomberg. new york city law enforcement officials have arrested a 62-year-old in manhattan in connection with tuesday shooting at a brooklyn subway station. he will face federal terrorism charges. we are drawing down -- joined now by someone tracking this from an infrastructure perspective. what has been demonstrative is the worry about lack of investment in our transit. it was blamed on the mta that the cameras at the subset -- subway station weren't working. tell us about the state of the mta right now. >> for years, it has been trying to catch up and basically become this modern transportation agency. they are trying to keep up with

tokyo and london and paris and what's happening abroad. this incident isn't helping in terms of looking at the actual infrastructure. the cameras weren't working when the shooting happened. there's a lot that they have to reconsider and take a step back and look at so they can continue to make this system as modern as possible, especially with technology advancing so rapidly. they have to keep up with the pace of demand of technology. caroline: camera footage taken at different subway stations when we know that the accused did ride later on in the day and we were able to piece that together and eventually apprehend him. i'm interested, for people who are based around the world right now, how comfortable are we getting on a transit system at this moment? we didn't want to get on it anyways because of covid. skylar: now that st. james has been caught, there's relief.

there is a lingering thought in the back of people's minds words like, what's going to happen next? do we know when something else could happen? it might not be a shooting. it could be a train colliding. there are so many safety components to writing the subways. a lot of people have that in the back of their mind right now. a lot of people are on edge a little bit. they are worried because no one knows what will happen or when it will happen and they don't want to be that person. caroline: much pressure placed on the administration. to invest in public infrastructure. the infrastructure bill on the federal level likely helped. where do you think the duress is for the moment? skylar: the biggest issue for the mta is bringing riders back again so they could bring in another source of revenue. also to get service back to where it is reliable for customers.

going back to what it was post-pandemic. we might start to see progress get better. they are bringing in a new chief , a subway president. he's like, we have to improve subway service and ridership and build on layering issues facing the mta. caroline: thank you. great reporting there. coming up, a crypto startup lands $400 million from investors like blackrock infidelity. this is bluebird. ♪

caroline: the theory emerge will be completed after june, according to one of the leading software developers. let's bring in our crypto expert on this. the much-anticipated wave as we go from proof of work and stake. talk to us about how this might be done in a few months time. >> very interesting. this has been highly anticipated. we have one of the leading software developers tweeting that this will likely be a few months after june. no firm date yet. we are in the final chapter of proof of work on the cerium.

bitcoin evangelists have confirmed about proof of stake. the debates around energy consumption here. this could be a game changer for a theory him. that has more than 100 billion worth contingent on this merge. caroline: talk about some of the projects that spin off of this. we now brace ourselves to have that moment in the sun again. >> altcoins selling off more than bitcoin. going emerging again. you are seeing that on the others. there are some coins that are rising at an even faster pace in the last 24 hours. if you track a group of 100 altcoins, you see that group of 100 is actually also rising at a faster pace. bitcoin is becoming a solid percentage of the ecosystem at large. there's always that question. what remains at the end of the

day? what takes off. these protocols have gained a lot of excitement when it comes to not just a cerium but bitcoin and the adoption of lightning changing the way people use it. caroline: going on -- plenty of exciting areas you can be investing in. one area that we want to discuss is stable coins in the use therein. our key story of circle landing a $400 million funding from some of the biggest institutional players. the 400 million, what is it going to be used for? >> thanks for having me on. the 400 million has been part of our capital plan for continuing to scale, invest.

we are growing international. we are building significant investments in product development. we are investing in sales and marketing around getting more and more, thousands of businesses to use it as an infrastructure, to build on it as a core part of their applications. driving more use cases and payments, commerce. investment capital and growth capital to continue to drive the incredible growth and adoption that we've seen over the past couple years. caroline: that is predicated on institutional players getting involved. fidelity is pinned to the race that is crypto and is involved earlier. it's interesting what blackrock is saying. we knew how larry fink had a cautious finnic in the world of crypto. has started to write about the infrastructure play, the payments, the way in which it could facilitate trade. is that what is going on here? why would black block --

blackrock get involved? . >> this is a corporate strategic investment from blackrock. it's not investing their client money, it's their own money. alongside it, a strategic partnership has been formed which is focused on the reserve management model for usdc. they are a primary manager of the reserves that back usdc which is important to get institutional acceptance for people to understand the safety and security of all of this. importantly, this is about power , upgrading the fundamental financial market infrastructure of the way dollars working capital markets. as we know today, the banking system doesn't move at the speed of the internet. there's counterparty risk, settlement risk. all kinds of challenges that are there. i think blackrock lays an incredibly large role in capital markets, managing $10 trillion of assets.

this is an opportunity to bring use cases for usdc, certainly major use cases today in digital asset markets. cross-border payments. in core capital markets, we see in a norma's opportunity. the final comment is that i think there's a belief in the opportunity in establishing dollar digital currency and private sector led innovation and dollar digital currency. blackrock be a huge partner for us as we try to establish that as a predominant -- preeminent model the u.s. could get behind. caroline: there's an incredible convergence. you've reported that you are closer to submitting an application to operate as a bank in the united states. a couple questions. how soon could we see that kind of an application happen? how much is that contingent on the regulatory environment we are seeing right now? >> we are seeing tremendous

progress. the policy discussion has shifted massively over the last year, from one focused on the risks and challenges of stable coins. natural world where the head of the federal reserve, secretary ellen, the head of the occ, the under secretary of the treasury, members of congress on the left and right, this has become a nonpartisan issue which is, how do we ensure that dollar digital currencies become the currency of the internet? policy is moving towards that and making sure that large private sector actors are well regulated, can have federal supervision. there's been a move towards that. we are very excited about the progress that's being made in washington, d.c.. the engagement we are seeing from the occ and others. we are very confident that this is going to become not only a federally supervised and regulated critical market infrastructure but it's going to help the united states be

competitive in this currency arena. caroline: how important is this to you to get this done swiftly, perhaps as early as this year? >> yeah. look, our view is, i've said this publicly multiple times. there is no occ manual for a coin issuer. this is a new arena. we are dealing with multiple public block chains. usdc operates on a different public block chains. what are the procedures? we are a furl reserve bank. we are applying to become a full reserve bank. there's a lot of novelty to stable coin-based payment systems and banking. it's a new phenomenon. there's a lot of work to do to get that right. we are patient. we want to get that right. we want to work collaboratively with regulators on that. get to a place where there's great supervision on critical market infrastructure that's going to be at the foundation of

the economic system in the next 50 years. caroline: what about collaboration with others in the space of stable coins? is there a winner takes all? do you think you need to collaborate together? >> our view is a very specifically, we believe there needs to be sound national policy and regulatory models around this. not just in the united states but around the world. we are seeing strong indications from the u.k. treasury, u.k. government. strong indications from other major financial market centers wanting to define the standards for this. i think regulatory harmonization is really important. having standards but also technology standards. the usdc itself was originally launched and is governed through the center consortium. we want to grow that and scale that and see more stable coins and currencies that can follow the same set of standards. we think that is what is going

to bring this to life. >> we are getting a question from a viewer about --. how would a potential fall mean? >> i think we've seen incredible growth from things like usdc. we've seen incredible growth in this whole sector. i think major institutional players that are at the core of liquidity in this market are very active in that. i think the crypto economy is quite resilient and would be resilient from an event like that. caroline: thank you so much for taking time and walking us through the institutional adoption. thank you. thank you for the inside track on all things crypto. coming up, $1 million fight for climate change. the new frontier fund doing just that. which companies they will be backing.

that's next. this is bloomberg. ♪

caroline: $925 million, that's how much the world's biggest companies are about to spend by carbon offset. it's called the frontier fund. it's owned by stripe but it got funding from the likes of alphabet. it's great to have time with you. talk to us about the progress you've made so far. how much are you looking to be offsetting the impact of the businesses you currently network?

>> right. we start with the science. in order to hit global warming targets, we need to do thing -- to do things. when -- we need to stop admitting and we need to remove carbon dioxide in the air and ocean. we need to do a huge amount of both. we are behind on the second. we didn't realize we were going to need to do as much carbon removal. our focus so far at stripe has been a small corporate commitment. it has expanded to make it easy for many stripe users to direct a fraction of their revenue to carbon or -- removal. despite this progress, we are still not at all on track to scale carbon removal to the required amounts by 2050. frontier is an attempt to get carbon removal on its best

possible trajectory so we have a suite of solutions that we need to hit net zero in the coming decades. caroline: talk to us about how the fund came together. nan: it came together, the genesis was from the stripe climate team saying, while we've made a lot of progress, we have a long way to go. how would we bend the curve up for carbon removal, knowing that we can't do this by ourselves? this formed the impetus of going out and starting to talk to a number of companies. how do we send a really loud signal to the industry that there are going to be buyers for this technology which has been missing so far? caroline: talk about the startups. how do you analyze them? >> yes. we are starting to see a diverse set of companies that are

attempting carbon removal and they are all over the map. everything from traditional air capture, these giant fans. we have running tide which is doing to help sinking. growing large columns of kelp biomass in the ocean and taking that to the bottom or it stays forever. long-term industrials are another example. injecting bio oil underground. we are seeing a huge amount of diversity in the kinds of approaches to this. that's exactly what we need. in order of magnitude more attempts so that we have this portfolio that's going to collectively get to the 6 billion number by 2050. caroline: i hate to ask.

how do you ensure you have the right founder in place? how do you ensure you have all the right driving factors behind the business? nan: i will make one sort of important distinction. in the case of frontier and stripe climate, we are buying carbon removal. think of us like the customer. we are not taking an equity stake in these custom needs. -- companies. with energy, there's an end-user. humans drive value for that. with carbon removal, there's no intrinsic by your. nobody has wanted to buy carbon removal when it's early and expensive. as a result, why would you start a company if nobody is going to buy the thing you are selling? why would you invest in a company that doesn't have a revenue stream? if we are the customer, we can use that to pull project finance and we can use it to pull more founders into the space.

we will draw that distention between the companies. the other point i will make, this field is early. we should expect a number of these companies to not work and that's ok. that's what an early ecosystem look like. we need to collectively prepare for a lot of innovation. some of these will work and some of them won't. let's figure that out now so that by 2030, we feel more confident. caroline: well said. thank you so much for talking with us. it's really fascinating. stripe head of climate. thinking about carbon capture and how to shift the dial. that doesn't for this edition of bloomberg technology. don't forget to check out our new podcast. you can find it on the terminal as well as online. you don't want to miss it. 20 more coming up tomorrow as we dig into the world of technology in the world of fin tech with a

focus on crypto. this is bloomberg. ♪

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