Company: TLGYF
Filing Date: 2025-09-10
Form Type: 425
Source: 0001213900-25-086376
Chunk: 6

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-10
Form: 425
Chunk 6
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,
but anything else on DATS that you think is interesting or relevant?

Guy Young:Yeah. I think one thing we haven’t spoken about a
bunch, which is actually a pretty interesting tailwind for DeFi in general, if it can be done in the right ways. Really think about connective
tissue between capital markets in the real world and on-chain finance in terms of deployment in DeFi.

<div align='center'>4</div>

You’ve seen a few of these start to deploy like ETH into some of the
staking products that you see on-chain. One idea that I think is pretty interesting to explore with something like Ethena, right, is that,
so you can raise debt financing within the vehicle at 5-6 percent within TradFi and then deploy that into USD at 10. Now, you’ve actually
created a very interesting TradFi to DeFi carry trade, where you can do that at mega scale, obviously, fixed income markets are huge in
the real world, and then actually push the TVL and growth of your own products on-chain, and then monetize that spread that you’re actually
creating between TradFi and DeFi.

I think we’re going to see a lot of very interesting structures that
actually find compliant pathways for capital to come at scale from TradFi into DeFi. I think a lot of the products that we provide like
leverage, yield, all of these different pieces could be enormous beneficiaries of those flows. Because this is slightly different to ETFs,
right?

Where the mandates of some of these DATs is much broader than an ETH
staking ETF, for example, because it’s almost like an open-ended hedge fund to basically take the ETH and just say, maximize the return
that you can make on the other side. So I think that there’s an interesting tailwind that might sort of evolve with DeFi TVL that falls
out of this.

Host:Guy, can we go a little deeper on just what you think
will actually happen here with this carry trade? Let’s follow this a little bit.

Guy Young:So yeah, I think as rates fall, your ability to raise
leverage from TradFi obviously becomes cheaper. And I think what we’ve generally seen in the last cycles and even at the beginning of
this one in 2024 is like when rates start to fall in TradFi, people speculate more on the longer tail of assets, crypto, demand for leverage
picks up