BlackRock, in collaboration with Securitize and Uniswap Labs, integrated its $2.2 billion tokenized treasury fund, BUIDL, for trading on UniswapX.  The Uniswap protocol is the world’s largest Decentralized Exchange (DEX) processing over $4 trillion in volume since launch in 2018.  Through integration, pre-qualified whitelisted investors can trade BUIDL shares for USDC leveraging UniswapX’s RFQ (request-for-quote) framework. Unlike traditional AMM based passive liquidity pools, UniswapX routes orders to a network of whitelisted market participants (i.e. subscribers) including Flowdesk, Tokka Labs, and Wintermute who compete to offer the best prices with rules enforced on the execution layer.  No private blockchain required.  This is what institutional DeFi adoption looks like in practice: a regulated fund, whitelisted participants, and decentralized execution - all in one transaction flow.

Alongside the integration, BlackRock announced an undisclosed purchase of UNI governance tokens. Together with Apollo's agreement to acquire up to 90 million MORPHO tokens and Citadel Securities' acquisition of ZRO, these moves mark a turning point for digital assets. Wall Street is no longer merely experimenting with or launching products on DeFi protocols - it is securing direct governance stakes in the underlying infrastructure, purchasing governance tokens to gain influence over the protocols they intend to build on.

Tokenized RWAs are increasingly finding their way into DeFi lending protocols. Euler Finance integrated Securitize's DS Protocol, allowing any issuer that adopts the standard to launch digital assets and use them as collateral within Euler's curated lending markets. BlackRock had already broadened BUIDL's reach by connecting with DeFi protocols like Euler through wrapped versions of the fund, making it possible for tokenized treasuries to function as collateral in DeFi lending markets. Through Securitize's sToken Framework, BUIDL is converted into sBUIDL - a composable ERC-20 token that can serve as collateral on DeFi protocols.

Euler’s model draws on the playbook pioneered by Morpho, which positions itself as a core financial lending infrastructure layer through modular vault architecture that supports curated lending markets with configurable risk controls. Morpho popularized the "DeFi Mullet" concept, in which applications serve as a clean frontend while complexity is handled by DeFi infrastructure on the backend. Banks, exchanges, and fintechs - including Coinbase, Crypto.com, Gemini, Ledger, and Societe Generale - have embedded Morpho into their own products to power digital asset backed lending, with Societe Generale deploying its EURCV and USDCV stablecoins directly onto the protocol.

JPMorgan's embrace of public blockchains signals a strategic shift for Wall Street. JPM Coin, a USD-denominated deposit token, allows institutional clients to transfer value on Base, an Ethereum Layer-2 incubated by Coinbase, enabling transactions at the speed of the internet for a fraction of a cent.  JPMorgan is also launching its first tokenized money market fund, the My OnChain Net Yield Fund (MONY), on Ethereum. Banks like JPMorgan command massive distribution channels and stand to unlock new revenue streams and operational efficiencies by embracing blockchain and DeFi.

Global equities, a market valued at over $125 trillion, is migrating to DeFi. Robinhood plans to bring its 2,000+ tokenized U.S. stocks and equities to the Robinhood Chain, its Ethereum Layer-2 network built on Arbitrum. This will enable equities to be programmatically traded, self-custodied by users, and accessible 24/7. Since launching three weeks ago, the Robinhood Chain testnet has already processed over 12 million transactions. Meanwhile, tokenization platform Ondo Finance is unlocking liquidity and yield for equities by enabling tokenized U.S. stocks and ETFs on Ethereum to be used as collateral in DeFi lending markets such as Euler and Morpho - enabling institutions to borrow stablecoins against tokenized equities. Ondo currently comprises over 60% of the tokenized equities market.

Tokenize everything is no longer a slogan.  What began as experimentation has become strategic conviction. The world's largest asset managers, banks, and brokerages are not just tokenizing assets - they are embedding themselves into DeFi's infrastructure, acquiring governance tokens, and deploying regulated products on permissionless networks.  With over $717 billion in tokenized real-world assets and growing, the question is no longer whether traditional finance will adopt DeFi, but how quickly. The institutions that move decisively, controlling both the products and the rails they settle on, will define the next era of global finance.

Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

The autonomous AI agent economy is projected to reach $30 trillion by 2030. Since launch in May 2025 the x402 ecosystem has processed over 159.42 million transactions worth $43.06 million between 407,920 buyers and 81,000 sellers. X402 enables instant low-cost payments for digital services. Subscription based monetization models are replaced with pay-per-use API queries, micropayments for businesses, and on-demand content where consumers pay per article, dataset, or video. No manual checkout flows required. Payments are no longer an application on the web, rather a native network built directly into the HTTP infrastructure itself. A payment rail for the internet without high friction, minimums, and percentage fees involved with credit cards.

X402 revives a three-decade old vision of the web - an open internet-native payment protocol. HTTP 402 "Payment Required”. Dormant since 1996 the designers of HTTP anticipated that the web would require a protocol-level mechanism for value exchange. However, due to the high friction of legacy payments and lack of agreement on standardization, the 402-status code was reserved as a placeholder. While legacy payment infrastructure made automated micropayments an economic impossibility, the confluence of AI, blockchain, and stablecoins have produced the ideal payment rails for agentic commerce. Small-value transactions that were previously impractical now work on internet scale.

X402 is a trojan horse for mainstream adoption of stablecoins - a market worth over $293.44 billion with 223.44 million holders, and $9.77 trillion in transfer volume the past 30 days. Blockchain experienced its “broadband moment” earlier this decade with the arrival of Ethereum Layer-2 (L2) networks – scaling solutions for reducing transaction costs to a fraction of a cent while enabling internet native micropayments. High throughput L2s leveraging stablecoins allow AI agents to move value at the speed of the internet. Ethereum L2 networks have increased from 27 in 2022 to 154 in 2025, securing over $40.89 billion in value with Arbitrum One, Base, and Optimism comprising over $16 billion, 11 billion, and $1.93 billion respectively.  L2s enable enterprises to design blockchain environments customized to their compliance, performance, and privacy requirements without building from scratch. Transactions executed on L2s are settled on Ethereum – a credibly neutral public infrastructure serving as a global settlement layer for agentic commerce and finance.

Agentic commerce will increase the speed of transactions, collapsing the time it takes for product and service discovery. Leveraging Agentic Payments Protocol (AP2) and x402 extension, Google and Coinbase created a proof-of-concept demo for Lowe's Innovation Lab.  With simple text prompts and pictures, an AI agent can diagnose a DIY project, research, inventory, shop, and check-out on behalf of a customer with stablecoins. X402 is a neutral internet standard anyone can build-on and integrate - blockchain agnostic, supporting EVM-compatible chains and Solana.  The ability to integrate x402 payments into Farcaster Mini Apps, showcases a future where AI commerce is built directly into social media experiences. Allowing creators and merchants to accept USDC payments without a customer leaving the application or managing complex payment flows. In practice, when a client requests data or a service from an x402-enabled HTTP server, the server responds with a '402 Payment Required' status including payment instructions specifying a supported token like USDC or another stablecoin. Once the client completes the payment, the transaction is verified, and the requested resource is delivered.

AI is beginning to permeate every layer of the tech stack, from hardware to software and user-experience. Agentic onchain wallets represent the next evolution – a shift away from unfriendly interfaces toward self-custodial wallets like MetaMask and Phantom that integrate with LLMs to translate your written or spoken requests into actions (e.g., “Phantom pay Veronica $100 in USDC”). But this is only the beginning, as AI simplifies how humans interact with blockchain, it is also paving the way for machines to transact entirely on their own. A “smart” world of machine-to-machine commerce, where autonomous systems and IoT devices transact seamlessly without human intervention. Picture an electric self-driving semi-truck pulling into an automated charging station, replenishing its battery, and settling payment in USDC over the blockchain - all on its own. What once filled the pages of science fiction is fast becoming reality.

X402 represents more than a technical standard - it marks the fulfillment of a vision the web's architects embedded into HTTP three decades ago, now realized by the convergence of AI, blockchain, and stablecoins. By transforming payments from a bolted-on application into native internet infrastructure, x402 removes the friction that has long constrained digital commerce to human mediated transactions with minimum thresholds and percentage-based fees. In this way, x402 may prove to be the bridge that carries blockchain technology from early adopters into the fabric of everyday commerce, powered not by human enthusiasm but by machines that simply need it to work.

Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

As institutions continue to “tokenize everything” the distinction between onchain and off-chain asset classes are dissolving.  The total value of tokenized real-world assets are over $426.44 billion with $18.91 billion (distributed) enabling direct investor management via custodians or self-custodial wallets. U.S. Treasuries are emerging as the base layer for the onchain economy. Stablecoins comprise over $298 billion worth of value, with Tether USDT and Circle USDC commanding 86% of market share.  Tokenized U.S. Treasuries comprise $9 billion, dominated by BlackRock’s BUIDL, Circle’s USYC, Ondo’s OUSG, and Franklin Templeton’s BENJI.

Tokenized equities broke into the mainstream, surging from $10 million in December 2024 to over $750 million in December 2025 - a 75x increase.  Tokenization providers, Ondo Global Markets, Backed Finance (xStocks), and Securitize now control over 95% of this market.  Robinhood introduced tokenized equities on Arbitrum One for European clients while announcing plans for their own Layer-2 network to support 24/7 trading and self-custody. The rapid institutionalization of tokenized equities signals a fundamental shift in how traditional assets will be issued, traded, and held in the decades ahead.

SEC Chairman Paul Atkins predicts the entire U.S. financial market will move onchain within a “couple of years” - a notable signal of regulatory alignment with industry direction.  The Depository Trust Company (DTC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC) received a no-action letter from the SEC to offer a new tokenization service, expected to be production-ready in the second half of 2026.  DTCC’s subsidiaries were responsible for processing securities transactions worth $3.7 quadrillion and held custody of assets valued at $99 trillion in 2024. Assets tokenized by DTC will bridge TradFi and DeFi, enabling interoperability between blockchain-based and traditional liquidity pools – signaling large-scale tokenization efforts from traditional financial incumbents.

Global Systemically Important Banks (G-SIBs) are marching towards onchain capital markets.  J.P. Morgan’s embrace of public blockchains signals a strategic shift for Wall Street.  The JPM Coin is a USD-denominated deposit token institutional clients can transfer on the Base network, an Ethereum Layer-2 incubated by Coinbase, enabling transactions at the speed of the internet for a fraction of a cent.  J.P. Morgan is also releasing their first tokenized money market fund, called the “My OnChain Net Yield Fund (MONY) on Ethereum.  Banks such as JP Morgan command the largest distribution channels and could unlock new revenue streams and operational efficiencies by transitioning traditional “accounts” into blockchain-based wallets.

The onchain adoption curve is comparable to the internet’s trajectory in the mid-1990s. In 2025, monthly active users of digital assets increased to 40-70 million with 716 million owners of digital assets globally, and 181 million monthly active wallet addresses.  The next unicorn may be the company who converts the 716 million global digital asset owners from holders to monthly active users.  Stablecoins often called crypto’s “ChatGPT moment”, demonstrated the clearest product-market fit, executing over $46 trillion in total transaction volume ($9 trillion adjusted).  The total stablecoin supply is over $298 billion with the majority of transaction volume settled on Ethereum and Tron. Stablecoins enable the U.S. government to export U.S. debt worldwide, slowing down the trend of de-dollarization from nations reducing their dependency on the U.S. Dollar, while decentralizing the ownership of U.S. debt from sovereign nations to individuals worldwide. 

Stablecoins are often compared to the U.S. Free Banking Era of the 1800s, when private companies and state-chartered banks issued their own currencies.  In 2025 Wyoming introduced the Frontier Stable Token (FRNT) - the first fully reserved, state-issued stablecoin or “stable token” in the United States.  FRNT is live across several public blockchains including Arbitrum, Avalanche, Base, Ethereum, Optimism, Polygon, Solana, and available on Rain's Visa-integrated card platform.  Interest income generated from the reserves backing FRNT will be distributed to the ‘Wyoming School Foundation Program’ run by the state's Department of Education.  Exemplifying a new model for funding public goods while creating a new revenue stream for education without raising taxes.

Dozens of companies including Bridge, Paxos, and federally chartered SoFi are unlocking new business models for Wall Street by delivering white-label stablecoin solutions for clients.  Meanwhile, purpose-built “corporate blockchains” such as Circle’s Arc, Stripe’s Tempo, and Tether’s Plasma are tackling adoption and scalability challenges head-on, offering configurable privacy, zero-fee payments, and stablecoin-native gas. In 2025, stablecoin distribution shifted toward consumer wallets.  MetaMask and Phantom, two of the largest self-custodial wallet providers, launched native stablecoins - mUSD (via Bridge/M0) and CASH (via Stripe Open Issuance), respectively.  Wallets are rapidly evolving into full-fledged “everything apps”, embedding payments (via Visa and Mastercard), trading, lending, perpetuals, social activity, and stablecoins directly into their interfaces for everyday experiences.  Legacy financial institutions and neobanks are positioned to become the interface layer for mainstream digital asset adoption.

The pieces are in place for blockchain integration in mainstream finance: institutional infrastructure from the world’s largest banks, regulatory frameworks taking shape, and consumer applications reaching usability thresholds.  The question is no longer whether traditional finance will move onchain - but how quickly, and which players will capture the value created in the transition. Those who move decisively in 2026 will help shape the architecture of tomorrow's financial system and the next generation of the internet.

Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Last month, tokenized equities broke into the mainstream with announcements by Backed and Robinhood.  Swiss issuer, Backed released xStocks a suite of tokenized U.S. stocks and ETFs offered by Kraken and Bybit for eligible non-U.S. clients.  The digital tokens are issued on Solana as collateralized representations of shares held in custody, transferable to self-custodial wallets for 24/7 trading, and usage in Decentralized Finance (DeFi) applications including Raydium, Jupiter, and Kamino.

Robinhood launched +200 U.S. stock and ETF tokens on Arbitrum for European clients.  The ‘stock tokens’ are derivatives, tokenized contracts intended to follow the price of a given asset. Robinhood plans on following in Coinbase’s footsteps with ‘Base’ by eventually moving operations to their own Layer-2 on Arbitrum Orbit to support 24/7 trading and self-custody.  Embracing the “TradFi in the front, DeFi in the back” distribution strategy where companies deliver the simplicity of a user-friendly mobile application powered by DeFi in the backend. Ensuring consumers receive the benefits of blockchain without the complexity.  Blurring the distinction between TradFi and DeFi.

This convergence of TradFi and DeFi is helping to drive financial inclusion in developing countries while democratizing access to financial markets – giving world citizens such as Europeans exposure to U.S. equities.  If the success of stablecoins are any indication, the future of Wall Street is onchain with tokenized stocks witnessing mass adoption. Stablecoins are a +$257 billion market with transaction value reaching $15.6 Trillion in 2024, surpassing AMEX, Mastercard, and Visa.

Tether, issuer of the world’s largest payment stablecoin by market capitalization, exceeded $13 billion in profits for 2024 and $5.7 billion in the first six months of 2025. All while employing fewer than 200 people. The strategy, convert cash from customers purchasing USDT into U.S. Treasuries, and earn yield.  Tether was the seventh largest buyer of U.S. Treasuries in 2024, while BRICS countries such as Brazil, China, and India reduced their holdings.  Stablecoins serve to unlock new business models for Wall Street.  Enabling the U.S. government to export U.S. debt worldwide while slowing down the trend of de-dollarization from nations reducing their dependence on the U.S. Dollar.  Stablecoins decentralize the owners of U.S. debt from sovereign nations to individuals worldwide.

Despite Circle (USDC) and Tether (USDT) comprising the majority of market share for stablecoins – the largest financial institutions plan to remain competitive and move onchain.  JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are exploring the formulation of a joint stablecoin. JPMorgan is no stranger to blockchain – with their Kinexys Digital Payments platform exceeding $1.5 trillion in notional value and processing an average of +$2 billion daily in transaction volume.  Back in May 2025, JPMorgan crossed the Rubicon, exchanging USD deposits for Ondo’s Short-Term U.S. Treasuries Fund (OUSG), between the Kinexys permissioned blockchain network and the Ondo Chain Testnet, a public Layer-1 network purpose-built for RWAs.

The convergence of TradFi with blockchain technology represents one of the most significant shifts in the global financial landscape since the advent of electronic trading. Tokenization of capital markets is no longer a distant possibility - it's happening now. As Wall Street continues to move onchain and the shroud of regulatory mystery begins to dissipate worldwide, blockchain and digital assets are proving themselves as the backbone of the new internet. It's no longer practical to dismiss the sector. Companies that fail to adapt risk being left behind in an increasingly digital economy where speed, transparency, and programmability are becoming table stakes rather than competitive advantages. The time for passive observation has passed. Businesses must start asking themselves - What is your stablecoin strategy in 2025?

Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

As a child from a welfare home, the promise of blockchain, a technology offering the farmer in a developing country the same opportunity as the broker on Wall Street, served as my inspiration.  Web3 should not be reserved for Fortune 500 companies and institutions, it should be for everyone. While Fortune 100 companies have been building blockchain solutions since 2015, the average entrepreneur and startup had no idea where to start.

I decided to leave my safe government job in 2021 to go full-time Web3. During my time with MCA, I've had the opportunity to be featured in several media outlets including the Wall Street Journal, U.S. Sun, and ESPN 1520, while facilitating +50 workshops totaling +1800 attendees, presenting at venues including the National Freelance Business Week, SCORE Buffalo Niagara chapter, Stetson University, UCF Volusia County Incubator, and DACFP Vision 2023 conference.

I've consulted with +100 clients, ranging from executive leaders to retail - helping them drive product clarity to conceptualize their onchain brands and technical support. Back in the day, especially pre-account abstraction, customer support consisted of obscure Discord and YouTube channels. I’ve shared highlights from my journey below to inspire and empower the Web3 community to build upon, innovate, and serve as inspiration.

DACFP Vision 2023

'Event Engagement Onchain'

MCA collaborated with the Digital Asset Council of Financial Professionals (DACFP) to design the user-experience for distributing POAPs with a tap of a mobile phone on a NFC compatible display. No digital wallet required. POAPs are digital ticket stubs, NFTs representing 'Proof of Attendance' and allowing companies and entrepreneurs to directly engage their community during and after an event via novel onchain marketing strategies. During the event, we designed and facilitated the “Mint Your Own NFT” workshop which guided DACFP Vision 2023 conference attendees through the process of setting up a self-custodial wallet and tokenizing a picture from their mobile phone on the blockchain.

DACFP Vision 2023 Conference: https://dacfp.com/vision-2023/

Phygital Learners

'Commemorative Experiences Onchain'

MCA facilitated the “Phygital Learners” program for the Salvation Army of Albany and Troy, NY. The program introduced underserved communities to Web3 and skiing, two industries historically reserved for the privileged. In a series of workshops, administrators and guardians were introduced to Web3, and children learned content and art generation using AI and text-to-image prompts. Artwork and content were compiled into a video, tokenized on Polygon, and distributed as a digital collectible to the administrators and guardians, who were a part of the program.

Cohort 1 - https://opensea.io/collection/snodogs

Cohort 2 - https://opensea.io/collection/creativecohort

Conserve Wildly

'Land Conservation for Social Good'

Conserve Wildly was a mockup for a geospatial intelligence company, envisioned as a Web3 application solving the disconnection from a one-time blind donation to personal involvement, enabling the everyday person to participate in governance matters from the comfort of their homes. The Conserve Wildly ecosystem connects and empowers a global community of conservationists with a forum, real-time ecological data, and knowledge they are supporting a project making a tangible difference in the real world. We crafted the product vision and strategic roadmap, while conducting interviews, digital wireframing, low and high fidelity prototyping, and usability studies accounting for accessibility, and iterating on designs. Conserve Wildly provided the everyday person the power to own a token representing access, voting rights, and the ability to have their ideas for conservation considered.

Explore Figma Prototype

Zero-to-Crypto

'Enter the Metaverse'

MCA created a comprehensive three-part workshop series introducing financial professionals to Web3 technologies. The course material and curriculum covered the following:

• Web3: The Internet of Value
• Digital Wallets & Self-Custody
• NFTs & The Metaverse

Participants explored how brands and Fortune 500 companies leverage blockchain enabled technologies, with live demonstrations of decentralized applications and immersive exploration of virtual spaces via Spatial, showcasing real-world brand integrations by companies such as Vogue.

NFT Auction at the Mezzanine in NYC

‘Fine Art Authenticated Onchain’

MCA delivered technical assistance at one of the world’s first, live, in-person NFT auctions at the Mezzanine in New York City. The event featured a panel discussion entitled, 'NFTs: A Focus on Phygital' with Elliot Sirchio NFT designer for CNN’s Web3 venture 'Vault by CNN', Imari Oliver founder of 'Bond & Play', and Jesse Rademacher former Adidas Design Director. Auctioneer, Sherry Truhlar auctioned NFTs with physical counterparts, ranging from fine art to 3D printed sneakers. Artists included Genesis Be and Leila Pinto, with some proceeds donated to charity. The experience made Web3 tangible in real life while highlighting the importance of effectuating positive change in the community for mainstream adoption.

I’m deeply grateful to everyone whose been part of MCA’s journey—and mine—over the past several years. From every executive to every workshop participant, and from the first follower of 'Beyond Blocks and Bits' to the 1,500th. As we look ahead to the next decade, I’m excited for what’s to come. The future is onchain, and together, we’ll ensure no one is left behind in this Fourth Industrial Revolution.

Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Coinbase’s launch of bitcoin-backed loans delivers the simplicity of a user-friendly mobile application powered by DeFi in the backend.  Instantly borrowing USDC by selecting the amount of bitcoin to pledge as collateral is a familiar fintech experience. Underneath the hood, Coinbase converts your bitcoin to cbBTC (Coinbase Wrapped BTC) and deposits into Morpho, an open-source lending protocol on the Base network.  No wallet download, seed phrase, changing networks, or visiting Morpho onchain required. Unifying the traditional fintech experience with the benefits of blockchain.

Will traditional exchanges such as the Nasdaq and NYSE follow a similar trajectory? Coinbase CEO, Brian Armstrong recently confirmed work towards natively integrating Decentralized Exchange (DEX) support, reporting “customers shouldn't need to know or care whether the trade is happening on a DEX or CEX”.  With one million tokens created weekly, exchanges and regulators will require adoption of new processes for the evaluation and listing of products.

World Liberty Financial, a lending application for supplying and borrowing USD-pegged stablecoins and “non-security” digital assets is embracing the TradFi in the front, DeFi in the back strategy.  Affiliated with the U.S. president, World Liberty Financial is reportedly focused on minimizing the complexity associated with DeFi by designing a user-interface for first-time users, while integrating Aave, the largest lending protocol by TVL with $17.98 billion in March 2025.  For the integration, AaveDAO will receive 20% of the protocol fees generated by World Liberty Financial and 7% of the total supply of project tokens.  Brands with large distribution channels, successful in making blockchain invisible, are the best positioned for onboarding the general public.

The ‘Fat Wallet’ thesis posits that wallets are the optimal frontend positioned to monetize value due to their concentration of wealth, control of distribution, and proximity to users.  Digital wallets serve as the first touchpoint for a newcomer onchain and have evolved significantly in the past decade from primitive “Send” and “Receive” functionality to feature-rich hubs for chat, trending applications and collectibles. Some wallets function as a user-friendly interface for DEX aggregators and NFT Marketplaces, while charging a fee for routing orders.  Eliminating the inconvenience and necessity to visit these applications individually. Why purchase a separate camera, calculator, GPS, music player, video camera, and watch when you can buy a Samsung Galaxy?

Venture Capital firms are banking on this trend, with Phantom completing a $150 million Series C funding round at a valuation of $3 billion. In January 2025, Phantom boasted 15 million monthly active users, $20 billion in annual swap volume, 850 million onchain transactions, and $25 billion in self-custody assets. Will the majority of value accrue to applications and wallet providers or the blockchain infrastructures they are built upon? In comparison to Google and Hulu, the current protocols for the internet such as HTTPS and SMTP, are not household names.  Value accrues to the application provider. In the past 365 days, three of the top 10 projects by revenue were blockchains. Tron, Ethereum, and Solana generated over $4.63 billion in revenue collectively, contrasted with Tether and Circle's accumulation of over $4.48 billion. Is the same trend happening in Web3?

Product design is trending towards the “iPhone moment” as builders prioritize familiar user-experiences powered by blockchain.  With brands directly integrating smart wallets into their applications - onboarding to Web3 is becoming as simple as logging in with your email, passkey, and social account.  Comparable to internet adoption in the 90s, once the challenges involved with infrastructure and user-experience are overcome, Main Street will follow, and Web3 will transition from the iPod to iPhone phase of innovation.

Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Private and publicly traded companies collectively hold around 4.78% of bitcoin’s total supply of 21 million, with MicroStrategy, Block.One, and Tether Holdings Limited serving as the top three largest holders.  Since the U.S. Securities and Exchange Commission (SEC) regulatory approval of U.S. exchange-traded funds (ETFs) to track Bitcoin in January 2024, ETFs have collectively amassed 6.21% of bitcoin’s total supply of 21 million. Governments in eleven countries including the United States, China, U.K., and El Salvador collectively hold 513,188 bitcoin worth $53.71 billion, accounting for 2.45% of the total supply of 21 million.  In addition to lawmakers in several countries calling for a Bitcoin National Strategic Reserve, an executive order in the United States on January 23, 2025 called for establishing a Working Group to evaluate the creation and maintenance of a “national digital asset stockpile”.  A digital asset arms race could be commencing as countries realize the geopolitical and national strategic importance of Bitcoin, a permissionless network for exchanging valuable bits of information across the internet that cannot be censored or prohibited by adversarial nations.

Bitcoin is a ‘Money’ protocol for the internet and +40 year culmination of research and development.  Initially designed as “electronic cash”, the primary use case for Bitcoin has evolved to a “store-of-value”, due to the functional limitations of the network.  These constraints have catalyzed the development of Bitcoin Layer-2 (L2) solutions which circumvent the technical limitations of Bitcoin by increasing scalability and offering a wide range of applications comparable to Ethereum and Solana. Around 62% of the circulating supply of bitcoin has not moved in at least one year, and is worth around $1.25 trillion.  Bitcoin L2s have the potential to unlock this +$1.25 trillion worth of dormant capital in the Bitcoin ecosystem, while expanding utility from the “store-of-value” narrative to a versatile network offering a wide range of applications.

Bitcoin has evolved significantly since Tether (USDt) launched on one of the first Bitcoin L2s, Omni Layer, back in 2014.  With a prioritization of decentralization and security, software upgrades have been gradual and steady, including Bitcoin’s Segregated Witness (SegWit) in 2017, which expanded the amount of data stored in a block to 4MB, and Taproot in 2021 which paved the way for the “Bitcoin Renaissance” of 2023.  The launch of Ordinals, which enables the inscription of data on individual satoshis, led to the rise of "Bitcoin NFTs", and revived interest in building applications on Bitcoin, while leading to the creation of the Runes protocol. 

Runes is a layer on the Bitcoin network permitting the creation of fungible tokens and paves the way for tokens powering Decentralized Autonomous Organizations (DAOs), stablecoins, and the tokenization of real-world assets on Bitcoin.  Runes is compatible with the Lightning Network, a scaling solution designed for cheap and instantaneous micropayments on Bitcoin while currently holding around $518.74 million in Total Value Locked (TVL). Last month, Tether announced the integration of USDt, the largest stablecoin by market capitalization, on Bitcoin and the Lightning Network, via the Taproot Assets protocol.  This integration ushers in a new era of tokenized financial assets on Bitcoin.

Whereas the Lightning Network optimizes payments, Bitcoin L2s focused on applications (e.g., DeFi, NFTs) collectively hold +$2.5 billion.  The top four chains by TVL include Core, Bitlayer, BSquared, and Rootstock.  Franklin Templeton led the Series A funding round for Bitlayer, marking a milestone for being the first Bitcoin L2 to receive investment from an ETF-licensed institution. Galaxy Research speculates that “out of the 75 Bitcoin L2s today, only 3-5 players will likely end up eating the lion’s share of the market”. As these technologies continue to evolve, they hold the potential to transform Bitcoin from a “store-of-value” to a versatile network offering consumer applications and financial products. Time will tell whether Bitcoin goes the route of AOL or continues its evolutionary journey as a borderless and decentralized layer of the new internet.

Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Reminiscent of early internet adoption in 1998, monthly active wallet addresses reached an all-time high of 220 million in September 2024.  Accelerating adoption is the trend towards cheaper and faster transactions on Ethereum via Layer-2 (L2) scaling solutions.  Emerging from this development are “Economic Zones”, L2 networks with shared standards for interoperability such as the Optimism Superchain, zkSync Elastic Chain, and Polygon AggLayer. These solutions strive to create a unified network of blockchains and user-friendly experience, analogous to the internet we use today. 

Buenos Aires in Argentina became the first government to launch self-sovereign digital identities for their 3.6 million citizens on zKSync Era

The Total Value Locked (TVL) on Ethereum L2 networks is +$54 billion with +$27 billion on the Superchain including Base, OP Mainnet, and World Chain, founded by Sam Altman of OpenAI.  Base, incubated by Coinbase, has experienced an increase of 2390% of monthly active users from January to December 2024.  Other additions to the Superchain in 2024 include Ink built by digital asset exchange Kraken and Soneium founded by multinational conglomerate Sony Group.

The Elastic Chain experienced institutional adoption in 2024.  Buenos Aires in Argentina became the first government to launch self-sovereign digital identities for their 3.6 million citizens on zKSync Era. Over 60 documents from birth certificates to citizen credentials can be directly owned and managed by citizens, accessible through the QuarkID application, and secured by the blockchain.  Deutsche Bank, with +$1.4 trillion AUM, is following the trend by launching its own “public and permissioned” L2 on Ethereum, leveraging zkSync technology.  This strategy speaks volumes to a wider trend of corporations, governments, and institutions moving onchain.

2024 witnessed an acceleration of adoption and products released by corporations and institutions, including the tokenization of real-world assets (RWAs) on public blockchains.  The total amount of RWAs onchain are +$15 billion and includes assets such as commodities, stocks, and U.S. Treasuries.  The total value of tokenized U.S. Treasuries are +$3.96 billion, a 414% increase from January to December 2024. Hashnote (USYC), BlackRock USD Institutional Digital Liquidity Fund (BUIDL), Franklin OnChain U.S. Government Money Fund (FOBXX), and Ondo (USDY) are the top four tokenized U.S. Treasury products by market capitalization. The +$3.96 billion of tokenized U.S. Treasuries are issued on public blockchains including Ethereum, Stellar, Arbitrum, and Solana.

The global payments industry handled 3.4 trillion transactions and accounted for $1.8 quadrillion in value during 2023 according to McKinsey & Company.  The acquisition of ‘Bridge.xyz’ by Stripe for $1.1 billion exemplified the significance of stablecoins in the future global payments landscape.  For a fraction of a cent, stablecoins facilitate transactions at the speed of the internet. Globally accessible and operating without gatekeepers, anyone can build a payments platform on stablecoin infrastructure.  According to VISA, +161 million active unique addresses sent +4.4 billion transactions worth +$25.7 trillion in the past 12 months.  The market capitalization of the entire stablecoin sector reached an all-time high of +$204 billion in December 2024 with around 67% of the market share denominated by Tether USDT and 21% in Circle USDC.  Collectively, stablecoin issuers are the 18th largest foreign holders of U.S. debt, surpassing countries such as Germany and South Korea.  This trend may continue as U.S. denominated stablecoins from traditional payments giants such as PayPal or more products with banking partners proliferate, such as the involvement of DBS and Standard Chartered with the Global Dollar Network.

The TVL of the Decentralized Finance (DeFi) market reached +$140 billion in December 2024.  Base is the largest Ethereum L2 on the Superchain by TVL, starting the year with +$751 million in assets, and ending with around $14 billion. Aerodrome is the top Decentralized Exchange (DEX) on Base by TVL with +$1.35 billion in assets and +$111 billion worth of trading volume in 2024. Adoption is credited to the protocol’s “MetaDEX” approach which combines features from Curve, Convex, and Uniswap.  Despite Aerodrome’s adoption, Uniswap remained the top DEX by TVL with +$5.87 billion in assets and +$736 billion worth of trading volume in 2024. Uniswap announced the launch of Unichain, a DeFi-native Ethereum L2 on the Superchain, representing a shift from general purpose blockchains to those optimized for a specific purpose.

From the launch of Bitcoin in 2009 to onchain AI agents in 2024, as blockchain technology and its consumer applications continue to mature, we're witnessing the birth of a borderless economy, one that promises digital property rights, self-sovereign identities, and greater accessibility for people worldwide. As we look to 2025, it's clear that this new digital frontier is reshaping our understanding of money, value, and economic participation, offering unprecedented opportunities for individuals and businesses alike.

Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Lens protocol is an open social network that allows users to own their social graph, enabling users to switch between social media applications while their content, connections, and data follow them across the internet.  From the makers of Aave and Family, this user-centric model addresses censorship and data ownership, offering identity and data portability while providing the freedom to leave an application without losing the content and connections grown on a social media platform over time.  Lens is U.S. Dollar native with transactions settled in GHO, a USD pegged stablecoin backed by collateral in the Aave protocol.  Lens is open source and permissionless, allowing third-party developers to build on the network.  One such application is Orb Club.

Despite an estimated 617 million digital asset owners worldwide and +220 million monthly active wallet addresses, only 30-60 million are monthly active users. The fragmented and unfriendly user-experience has hindered mainstream adoption of Web3 applications.  Orb Club approaches this challenge from a design first philosophy, featuring an intuitive interface accessible to those familiar with traditional mobile applications, seeking to ease the onboarding from Web 2.0 to Web3.  Minimal use of “crypto jargon” is found in the application, with the word “NFT” replaced by “digital collectible”, a strategy employed by Fortune 500 companies such as Mattel for their digital asset offerings in the retail space.

Communication on Orb Club captures Generation Z and A cultures with users responding to social media posts via “stickers” reminiscent of memes, created and monetizable by users.  Additionally, social media participants can create “Clubs”, a cross between a DAO and Reddit. Imagine if a subreddit community had a treasury.  Monetization is natively built into the social network with NFTs serving as a fabric of the social layer.  Social media posts are digital collectibles providing users several strategies from revenue sharing to limited edition releases.  Leading credence to the a16z State of Crypto 2024 report observation that NFT activity appears to be shifting from high-volume secondary markets to low-cost social collecting experiences.

Will the established social media giants relinquish market share to open social networks such as Lens, Farcaster, and OpenSocial? Or will they adapt and embrace user-owned social graphs and experimental monetization strategies?  The paradigm shift from walled gardens to open social networks is a major change in data ownership, traditional business models, and how we interact with others worldwide.  Open social networks are in their infancy and the promises of decentralized social media will not happen overnight. Anyone old enough to remember AOL and Netscape could never imagine the world we live in today.  Like the internet of the 90s, only time will reveal the evolution and impact of this technology.

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DISCLAIMER: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

BRICS Pay is a digital payment system for cross-border transactions between BRICS members in local currencies. Launched by the BRICS Business Council in 2018, this blockchain based payment system supports digital currencies and stablecoins pegged to the currencies of BRICS members. For a fraction of a cent, stablecoins facilitate transactions at the speed of the internet.  BRICS Pay was demonstrated at the BRICS Business Forum on October 17 and 18. Attendees received a promo card preloaded with 500 rubles to purchase coffee, tea, and souvenirs from participating vendors at the venue. To realize the BRICS Pay project, the BRICS Pay Consortium, a collection of financial, legal, technological, and consulting firms will operate “under the principles” of a Decentralized Autonomous Organization (DAO). A paradigm shift from centralized hierarchical structures, DAOs are a decentralized network of governing bodies, with no central headquarters.

BRICS nations represent 45.2% of the world population, 36.7% of global GDP at purchasing power parity, and own more than $1.3 trillion in U.S. treasuries.

The BRICS UNIT, an “apolitical” alternate global currency for BRICS members is currently under discussion.  The UNIT digital token represents a proportional share of the UNIT basket, containing 40% gold and BRICS currencies.  The UNIT token is part of the UNIT ecosystem, an open platform relying on blockchain technology to eliminate capital controls, exchange rate manipulation, and ensure transparency.  The UNIT ecosystem will be open to Decentralized Exchanges (DEXs) and digital platforms from commercial and Central Banks worldwide. DEXs are experiencing rapid adoption, with the Top 20 projects executing around $1.4 trillion in trading volume over the course of 365 days. A basket of currencies serving as a unit of account is nothing novel. The Special Drawing Rights (SDR) launched by the International Monetary Fund (IMF) in 1969 is an international reserve asset, freely exchangeable for currency by holders.  This basket of currencies is composed of the U.S. Dollar, Euro, Chinese renminbi, Japanese yen, and British Pound sterling.

Central Banks are working towards updating the legacy financial infrastructure worldwide. A Central Bank Digital Currency (CBDC) is a digital currency backed, issued, and regulated by a Central Bank. A total of 134 countries, representing 98% of global GDP, are currently exploring CBDCs, with retail deployment in three countries, including the Bahamas, Jamaica, and Nigeria. There are currently 44 ongoing CBDC pilots, including the digital euro and yuan, with the total transaction volume for the digital yuan reaching $986 billion in June 2024.  Project mBridge, a “multi-CBDC bridge” exploring real-time, peer-to-peer, cross-border payments and settlements, recently raised concerns in the Bank for International Settlements (BIS). General Manager of the BIS Augustin Carstens stated, “The BIS does not operate with any countries, nor can its products be used by any countries that are subject to sanctions”. Accordingly, the BIS “graduated out” of the project. As of October 2024, mBridge is run by the Central Banks of China, Hong Kong, Thailand, Saudi Arabia, and the UAE, with 32 observing members and 39 commercial banks participating in the MVP stage. Project mBridge is compatible with the Ethereum Virtual Machine (EVM) and leverages technology developed by the Hyperledger Foundation.

The journey of money from physical coins to digital tokens stored on decentralized ledgers reflects society's ongoing quest to democratize finance. As we stand on the cusp of this new era in finance, it's clear that blockchain technology will play a pivotal role in shaping the future of money and economic interactions worldwide.

DISCLAIMER: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

A new easing cycle could accelerate the pace of sovereign debt levels. According to the Institute of International Finance (IIF), global debt reached $312 trillion in the first half of 2024. Global government borrowing is projected to increase from $92 trillion to $145 trillion by 2030 and $440 trillion by 2050.  The U.S. national debt is $35.30 trillion and projected to rise by $1 trillion about every 100 days according to Bank of America investment strategist Michael Hartnett. In a new era of monetary easing and historic debt levels globally, what will be the impact to bitcoin?

Bitcoin is an open-access monetary system without political borders. Digital scarcity is programmed into Bitcoin, with a fixed supply of 21 million units estimated to be reached by 2140.  In a recent whitepaper by BlackRock titled “Bitcoin: A Unique Diversifier”, the world’s largest asset manager, reported that “some investors” consider bitcoin a “flight to safety option” and its “adoption trajectory is likely to be driven by the intensity of concerns over global monetary stability, geopolitical stability, U.S. fiscal sustainability, and U.S. political stability”.

Over $1 trillion worth of capital is currently dormant in the Bitcoin ecosystem.  Solutions such as Bitcoin layers and wrapped tokens denominated in BTC have the potential to unlock this dormant capital, while expanding BTC from the “store of value” narrative.  Bitcoin layers are secondary networks built on top of Bitcoin to increase scalability and offer functionality comparable to Ethereum and Solana.  Examples such as the Lightning Network enable cheap and instantaneous micropayments with bitcoin, whereas Core, Bitlayer, Rootstock, and Stacks permit DeFi and NFT applications.

Coinbase recently launched cbBTC a wrapped token backed 1:1 by BTC custodied by Coinbase. With cbBTC holders can actively use their BTC in supported DeFi applications on Base, Ethereum, and eventually Solana. Wrapped tokens denominated in BTC address the issue of blockchain interoperability, enabling BTC to be traded on DEXs or used as collateral in lending applications on different networks. Examples of DEXs supporting cbBTC include Aerodrome, Curve, and Uniswap, applications with total trading volumes (YTD) of $32.98B, $69B, and $511.49B respectively. Aerodrome a DEX launched natively on Base, reached over $1B in Total Value Locked (TVL) as of October 2024, while accounting for almost half of the TVL on the network, surpassing Uniswap at around $207M.

In this rapidly evolving financial landscape marked by historic debt growth and a new cycle of monetary easing, the implications of a non-inflationary supranational asset not owned or controlled by any single country are profound. Amid these economic shifts, Bitcoin may not only gain traction as a hedge against systemic risks but also redefine itself as a critical component of a new digital monetary framework. Anyone old enough to remember AOL and Netscape could never imagine the world we live in today. The technological breakthroughs enabled by blockchain could prove more seismic for humanity than the printing press.

DISCLAIMER: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

PayPal, the first publicly traded U.S. company to launch a stablecoin, PYUSD surpassed $1 billion in August 2024 and is now the sixth largest stablecoin by market capitalization. PayPal launched PYUSD on Solana in May 2024. Since launch the market capitalization of PYUSD on Solana increased from zero to $663.65 billion over the course of three months. PYUSD initialized a feature called “confidential transfers”, which offers merchants the ability to “provide confidentiality for transaction amounts to their consumers while maintaining visibility for regulatory purposes”. This advancement on Solana brings public blockchains closer to the privacy expectations of today’s commerce.

Wall Street continues to claim territory on permissionless blockchains with the issuance of tokenized products by traditional financial giants. The tokenization of U.S. Treasuries on permissionless networks increased over 1787% from $113,937,099 in January 2023 to $2,150,200,069 in September 2024. The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain U.S. Government Money Fund (FOBXX) products account for $517,200,069 and $427,383,039 in market capitalization respectively.

Franklin Templeton launched the first tokenized money market fund, FOBXX on Stellar in 2021 and since deployed on Polygon, Arbitrum, and Avalanche.  BlackRock’s BUIDL deployed on Ethereum in 2024. Tokenized U.S. treasuries are deployed on over 11 permissionless networks including Ethereum, Stellar, Solana, and Mantle with $1.60B, $437.00M, $60.60M, and $32.40M in market capitalization respectively. The future is multichain.

Our articles have migrated to Paragraph.xyz, a Web3 publishing platform. Paragraph represents a paradigm shift towards a user-owned version of the web, where members of a community are able to collect digital content from creators in the form of a non-fungible token (NFT). Paragraph provides creators the ability to engage their community via token-gating strategies and distribution of content to wallet addresses via XMTP, a wallet-to-wallet communication protocol enabling message ownership. Imagine email and messenger platforms without the walled gardens. From the tokenization of real-world assets to novel forms of community engagement, new business models are evolving on Web3 daily.

DISCLAIMER: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Majority of DAOs are deployed and managed on public ledgers (e.g., Ethereum), visible to anyone with an internet connection. All decisions, transactions, and operations of the government would be recorded on an immutable public blockchain, offering citizens the ability to audit a government's actions and finances in real-time. For treasury management operations, some DAOs adopt tools such as Safe, a multi-signature wallet requiring several approvals from software and hardware wallets before any transaction can be executed, ensuring funds are managed responsibly. The transparency of a DAO could reduce corruption from political officials while increasing trust in public institutions.

DAOs could enable a more democratic form of governance, giving citizens a direct say in policymaking including the management of funding. Tools such as Snapshot, an offchain voting platform for decentralized governance, could enable citizens to directly participate in the decision-making process by submitting and voting on proposals pertaining to their country. Imagine U.S. citizens submitting a proposal on how to spend funding allocated to the Department of Transportation. Snapshot often serves as a “temperature check” for a proposal before it is submitted to a community for a final vote onchain.

Tally an onchain governance infrastructure, could enable the creation of DAOs where members could delegate their voting power to more knowledgeable third parties and elected officials. DAOs are governed by smart contracts, self-executing and self-enforcing terms directly written into code. This ensures that all actions are carried out as agreed upon, without the possibility of human error or manipulation. A country governed by smart contracts ensures that once a decision is made through the voting process, the agreed upon terms would automatically execute, leading to faster implementation of policies and reduction of bureaucratic inefficiencies.

Snapshot’s integration of XMTP (Extensible Message Transport Protocol) offers a glimpse into the future of coordinating constituents at scale. The XMTP is an interoperable messaging protocol enabling communication between wallet addresses. Imagine email and messenger platforms without the walled gardens. The XMTP could provide government a direct way to engage voters, ensuring constituents are informed and notified of critical decisions, while providing the ability to submit votes on proposals from the convenience of their mobile phone.  The direct relationship facilitated by XMTP could reduce voter apathy while increasing voter participation.

The integration of blockchain by government is not a new concept. Back in 2020, the U.S. Postal Service filed a patent for a voting system based on blockchain. More recently, the California DMV has tokenized 42 million car titles on Avalanche with the goal of reducing in-person DMV visits and lien fraud. Despite the promise of DAOs, the complexity of scaling from small organizations to nation states presents several challenges. Participation in a DAO-based government would require a level of technological literacy and equitable access to the necessary infrastructure, potentially excluding segments of the population. Additionally, DAOs are vulnerable to security exploits, as demonstrated by the infamous attack on The DAO in 2016. Ensuring the security of a DAO-based government would be critical, as potential exploits could have severe global implications.

DAOs facilitate a level of global collaboration and coordination unfathomable in the 20th century, enabling individuals regardless of their physical location, the ability to directly participate in the decision-making process of organizations. The arrival of DAOs is reminiscent of the “static web” of the 90s, where users accessing AOL with dial-up modems were unable to fathom the evolution and impact of the technology in the decades ahead.

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Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Tokenization is the creation of a digital token representing a real-world asset on the blockchain. Digital tokens can represent anything of value such as commodities, fine art, equities, or real estate while extending the benefits of blockchain to finance.  Distributed Ledger Technologies such as blockchain enable an automated 24/7 financial system with programmable money, instantaneous settlement and transfer of value, increased liquidity, provenance, and transparency.

2023 witnessed the tokenization of U.S. Treasuries on public permissionless blockchains such as Ethereum, Stellar, Polygon, and Solana. The total value of tokenized U.S. Treasuries increased over 600% from $113,937,099 in January 2023 to $837,428,971 in December 2023.  Some of the largest issuers of tokenized U.S. Treasuries include Franklin Templeton, Mountain Protocol, and Ondo Finance.  The total market capitalization of U.S. Treasuries by blockchain is over $492m on Ethereum, $344m on Stellar, $13m on Polygon, and $11m on Solana.  Coming off the near zero interest-rate environment since the 2008 financial crisis, the past two years witnessed a record acceleration of interest rate hikes in the United States, potentially incentivizing market participants to increase exposure into U.S. Treasuries on- and off-chain.

The issuance of tokenized products by Franklin Templeton and WisdomTree signify a revamping of the financial system by traditional players.  PayPal, the first publicly traded U.S. company to launch a stablecoin (PYUSD), may indicate a proliferation of stablecoins from publicly traded companies in the next decade.  PYUSD is designed to maintain a “stable” peg to the U.S. Dollar and reportedly backed by a reserve asset portfolio of cash deposits, U.S. Treasuries, and cash equivalents.  PYUSD is the 11th largest stablecoin by market capitalization with over $268 million.

PayPal recently ventured into Decentralized Finance (DeFi) with PYUSD deployment on Curve Finance, a popular Decentralized Exchange (DEX) for swapping stablecoins.  The FRAX/PYUSD liquidity pool is the fourth largest on Curve Finance by Total Value Locked (TVL) with $135 million.  Additionally, the Aave DAO is taking a temperature check on a proposal which would allow PayPal to create a lending pool on their platform, giving market participants the ability to loan PYUSD to borrowers in order to earn yield.  PayPal is serving as a model for established Web 2.0 companies transitioning into Web3.

The market capitalization of the entire stablecoin sector is $134 billion with Tether (USDT) comprising 71% of the market share.  The top five stablecoins by market capitalization are USDT, USDC, DAI, FDUSD, and TUSD with $95b, $24b, $5b, $2b, and $1.8b respectively.  Due to the shutdown of BUSD, Binance’s stablecoin, FDUSD and TUSD witnessed an increase in market capitalization proportional to the decline of BUSD in 2023.  The verdict is still out, whether PayPal or another institution, will dethrone the top stablecoins by market capitalization.

Tokenization of real-world assets such as currencies and U.S. Treasuries could democratize finance, allowing a wider audience to participate in the financial system.  According to the World Bank’s Global Findex report, 1.4 billion adults were “unbanked” worldwide in 2021.  The “unbanked” are categorized as individuals without an account with a regulated financial institution such as a bank or credit union.  Imagine a world where anyone with a mobile phone and internet connection could access and hold a U.S. Treasury in a digital wallet. What if J.P. Morgan offered a U.S. Treasury Money Market Fund on a public permissionless network such as Ethereum?  Tokenization presents an opportunity for companies ready to build and embrace a more accessible financial system.

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Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Stablecoins are digital assets designed to maintain a “stable” price relative to another asset such as a commodity or currency.  In 2022, the settlement of stablecoins reached over $11 trillion, approaching Visa’s volume of $11.6 trillion, and dominating the $1.4 trillion processed by PayPal.  The market capitalization of the entire stablecoin sector is $128 billion with Tether (USDT) dominance comprising 69% of market share. USDT and USDC total $113 billion, collectively accounting for 88% of the market capitalization, with 99% of the stablecoin sector denominated in USD and dollar debt instruments.  Tether published its Attestation Report for Q3 2023 reporting 85.7% of reserves held in Cash and Cash equivalents, with U.S. T-Bills accounting for $72.6 billion, and quarterly returns on those investments nearing $1 billion.  Tether is one of the largest holders of U.S. Debt worldwide with the $72.6 billion exposure to U.S. T-Bills placing the company ahead of countries such as Australia, Mexico, and the UAE.  PayPal, the first publicly traded U.S. company to launch a stablecoin (PYUSD), may indicate a proliferation of stablecoins from publicly traded companies in the next decade.  The market capitalization for PYUSD is currently $114 million.  Considering PayPal’s brand recognition and large consumer base, the company may have the opportunity to help export the U.S. Dollar worldwide.

Deposit Tokens are a form of commercial bank money issued on a blockchain by a licensed depository institution such as JP Morgan.  JPM Coin, a Deposit Token issued by JP Morgan, handles $1 billion worth of transactions daily, and projected to reach $10 billion in the next year or two.  Transactions with JPM Coin are currently reserved for institutional clients on JP Morgan’s private permissioned blockchain platform. JP Morgan’s foray is merely the tip of the iceberg for institutional adoption.  Citigroup’s ‘Citi Token Services’ offers institutional clients the ability to tokenize deposits and HSBC’s recent debut of a platform for gold tokenization indicates a profound evolution of the infrastructure underpinning the global financial system. Boston Consulting Group (BCG) forecasts the tokenization of assets could reach $16.1 trillion by 2030 or a “best-case scenario” of $68 trillion.

A Central Bank Digital Currency (CBDC) is a digital currency backed, issued, and regulated by a Central Bank. A total of 130 Countries, representing 98% of global GDP, are currently exploring CBDCs, with deployment in 11 countries, including the Bahamas and Nigeria.  CBDC pilots are active in 21 countries, including China’s e-CNY, which currently reaches over 260 million people.  CBDCs endeavor to update the legacy payment infrastructure worldwide, creating an interoperable, “Universal Ledger” for connecting financial instruments.  In the U.S., the Federal Reserve has collaborated with several partners to research and test CBDCs, including “Project Hamilton” and “Project Cedar”.  Recently the House Financial Services Committee passed the “CBDC Anti-Surveillance State Act” which prevents the Federal Reserve and U.S. Treasury from issuing a CBDC to retail without Congressional authorization.  One concern about CBDCs is the ability for a Central Bank to issue currency directly to the public and bypass commercial banks. Agustín Carstens, General Manager of the Bank for International Settlements (BIS) envisions a “Universal Ledger” including wholesale CBDCs for use among financial institutions and deposit tokens from commercial banks for retail, thus preserving the current two-tiered monetary system.  The interoperability of wholesale CBDCs could reinforce the trend of countries reducing their reliance on USD by using local currencies in cross-border payments.  Global foreign exchange reserves of USD decreased from 70% in 2001 to 59% in 2023.

The convergence of Bank Deposit Tokens, Central Bank Digital Currencies (CBDCs), and Stablecoins represents a democratization of finance. A transition to the “Internet of Value”, a future where anyone can transfer value, as easily and quickly as sending an email, irrespective of location or device. As these technologies continue to mature, their impact on global finance is poised to be nothing short of revolutionary, redefining how we perceive, transact, and secure value in the digital age.

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Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

SAFE is an asset management platform compatible with Ethereum and the EVM chains. This multi-signature wallet requires multiple approvals from software and hardware wallets by stakeholders before any transaction can be executed. The enhanced control that SAFE provides ensures that funds are managed responsibly, thereby preventing potential scandals reminiscent of past corporate mishaps.

SNAPSHOT serves as an off-chain voting platform that allows DAOs to participate in decentralized governance. It often serves as a “temperature check” for a proposal before it is submitted to a community for a vote on-chain. To create a “space” on Snapshot, DAOs are required to register a domain on the Ethereum Name Service (ENS). As such, SNAPSHOT provides a platform for DAOs to gauge the sentiment of their community on various proposals.

GUILD is an infrastructure for creating portable memberships and social structures across Web 2.0 and Web3 applications. DAOs can create token-gated communities and leverage Guild to define community roles based on the token holdings of a member. Popular integrations include Discord, Ethereum, Google Workspace, POAP, and Telegram. GUILD plays a significant role in the DAO ecosystem by providing the infrastructure for creating and managing community memberships.

ARAGON is a tech stack and suite of applications for the creation, deployment, and management of a DAO. The Aragon App is a “no code” platform for creating and managing a DAO without a developer. To date, over 6,000 DAOs are built on Aragon, including Web3 protocols such as Curve, Decentraland, and Lido. ARAGON has become a preferred tool for DAO creators due to its ease of use and wide range of functionalities.

TALLY provides governance infrastructure for on-chain DAOs through a plug-and-play API and UI. It is a voting and governance tool that allows members of a DAO to collaborate, submit votes for on-chain proposals, and delegate votes to a third party. Web3 protocols such as Aave, Compound, ENS, and Gitcoin are leveraging TALLY, making it a popular choice for DAO governance.

As the world of DAOs continues to evolve, these tools are playing a critical role in shaping the future of decentralized organizations.

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Disclaimer: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

The DeFi (Decentralized Finance) space has grown rapidly this decade, with innovative applications emerging in various sectors of the financial industry. The TVL (Total Value Locked) in DeFi is hovering around $37.11 billion, a drastic decline from the $250 billion milestone in December 2021. TVL measures the total value of digital assets locked in a DeFi application and is considered an indicator of general adoption.

Despite the 85% decrease in TVL, Fortune 100 companies such as Citigroup and JPMorgan Chase continue steadfast with blockchain adoption. This fact is most recently evidenced by Citigroup’s launch of “Citi Token Services” which integrates tokenized deposits into their global network for institutional clients and JPMorgan Chase’s debut of the Tokenized Collateral Network (TCN), which recently involved a collateralized trade using a tokenized money market fund between JPMorgan and BlackRock. In this article, we will highlight the top five DeFi applications by TVL.

Lido, the leader in Liquid Staking, takes the top spot, with a TVL of over $14.02 billion.  Lido is a Liquid Staking application where market participants receive liquidity for staking coins. In other words, it allows users to stake their coins and generate returns while still having access to liquidity. Lido supports several networks, including Ethereum, Polygon, and Solana.

Coming in second, JustLend with a TVL of over $4.65 billion. JustLend is a lending application on the Tron network, where market participants deposit liquidity to earn interest or leverage as collateral to borrow digital assets.  JustLend is governed by a Decentralized Autonomous Organization (DAO), enabling token holders to submit proposals and vote on governance activities for the protocol.

Next on the list is Aave boasting a TVL of over $4.53 billion. Aave is a lending application where market participants can earn yield on deposits and borrow digital assets. Aave supports several networks, including Base, Coinbase’s newly released Layer-2 solution.  In January 2022, Aave and Fireblocks legitimized DeFi, pioneering a permissioned DeFi liquidity pool, which provided institutional investors the ability to participate in DeFi while maintaining compliance with KYC/AML requirements.

MakerDAO, with a TVL of over $4.20 billion, introduced the DeFi world to Collateralized Debt Positions (CDPs), a concept where market participants deposit digital assets into a smart contract to generate a loan denominated in the stablecoin, DAI.  This novel approach to lending and borrowing has made MakerDAO a significant player in the DeFi space.

Rounding out the top five is Uniswap, a pioneer of the Automated Market Maker (AMM) with a TVL of over $3.03 billion. Uniswap is a Decentralized Exchange (DEX) where market participants can directly trade or “swap” digital assets without an intermediary. Trades are permissionless and executed with liquidity pools instead of a traditional ‘Order Book’ for buyers and sellers.

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DISCLAIMER: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Emergence of the Decentralized Autonomous Organization, or DAO, has ignited a transformative shift in the way we interact, perceive, and manage organizations. These internet-native collectives rewrite the rulebook of corporate hierarchies and governance structures, creating a world where global collaboration and shared goals converge.

DAOs represent a paradigm shift from centralized power structures to a model of distributed decision-making and ownership. In stark contrast to the traditional corporate setup, DAOs function without a central authority or human intermediary, operating in a manner emphasizing consensus, inclusivity, and transparency.  DAOs are able to disintermediate by leveraging smart contracts, self-executing computer programs automating the execution and enforcement of predefined terms and conditions. By embedding the governance mechanisms and resource management guidelines onto the blockchain, DAOs are able to function autonomously while minimizing the risk of fraud or manipulation.

Public blockchains, such as Ethereum, provide a window into real-time transaction visibility. This level of transparency is extended to business operations within DAOs, allowing anyone to monitor financial transactions as they occur. To manage funds, some DAOs adopt tools such as Safe, a multi-signature wallet that necessitates multiple approvals from software and hardware wallets before any transaction can be executed.  This enhanced control ensures that funds are managed responsibly, preventing potential scandals reminiscent of past corporate mishaps. Imagine if Enron was a DAO, the transparent and consensus-based nature might have prevented the fraudulent practices that characterized their downfall.  Resource allocation would have been subject to stakeholder voting, reducing the risk of unchecked power, and the American public given the ability to monitor the corporation’s transactions in real-time.

DAOs are the embodiment of collective ownership, where participants hold tokens granting them voting rights and enabling them to shape the organization’s destiny.  In the realm of DAOs, stakeholders propose and vote on crucial matters including the direction of a project, funding distribution, and protocol adjustments. This system of governance is rooted in the concept of participant consensus, whereby decisions are made collaboratively, reflecting the diverse perspectives of the token holders.

A spectrum of decision-making mechanisms, each tailored to the organization’s objectives and structure, comprise DAOs.  For instance, Decentralized Finance (DeFi) protocols such as Compound and Uniswap utilize a mechanism called ‘quorum-based’ token voting, where a specific percentage of tokens must participate for a governance proposal to be considered and approved.  An alternative mechanism called ‘quadratic voting’, employed by entities such as GitcoinDAO, grants a greater weight to proposals supported by 100 different token holders voting with one token in comparison to one token holder casting a vote with 200 tokens. LinksDAO is one example of a DAO catering to a community of golf enthusiasts worldwide. The DAO leverages non-fungible tokens (NFTs) as membership cards that unlock incentives such as discounts on merchandise, exclusive golf course access, and voting rights.  The LinksDAO approach intertwines digital ownership with real-world experiences, illustrating the versatility of DAOs.

DAOs are more than a buzzword, they are redefining the essence of governance in the modern world. With their decentralized decision-making, transparent operations, and innovative approaches to ownership, DAOs are paving the way for a future where collaboration knows no bounds, and shared goals transcend geographical limitations. As we journey through the twenty-first century, the rise of DAOs reminds us that the evolution of organizations is far from over – it’s just getting started.

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DISCLAIMER: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

What services do you take for granted? Most likely, everyone reading this article has the ability to open a checking account or apply for a loan, but what about the “unbanked”? According to the World Bank’s Global Findex report, 1.4 billion adults were “unbanked” worldwide in 2021.  The United States, a “developed country” accounted for 5% of the “unbanked” globally with over 13 million adults.  The “unbanked” are categorized as individuals without an account with a regulated financial institution such as a bank or credit union.  Reasons for being “unbanked” include distance to a financial institution, lack of identification, and money – all obstacles Decentralized Finance (DeFi) aspires to remediate in the next decade.

Decentralized Finance, also known as DeFi, provides globally accessible financial services 24/7 to anyone with a mobile phone and internet connection, enabling the farmer in a third world country access to the same financial services as the broker on Wall Street.  DeFi refers to peer-to-peer (P2P) financial applications leveraging blockchain and other Distributed Ledger Technologies (DLTs) which form the backbone of Web3.  DeFi applications automate traditional financial processes while enabling a more resilient financial system that does not rely on third parties and intermediaries.  By using smart contracts, code that self-enforces and self-executes “Terms and Conditions”, a wide range of financial services from lending and borrowing to predictions markets, can be facilitated without human intervention.

The paradigm shift of DeFi and Web3 is self-custody.  For millennia society has relied on third parties to hold custody of assets and facilitate financial transactions.  As opposed to a bank holding your currency or brokerage buying your stocks, Web3 allows a user to self-custody their financial assets, through a software or hardware wallet, and connect to a DeFi application to facilitate a transaction.  For example, lending applications such as Aave and Compound Finance, allow users to lock up digital assets into smart contracts in order to earn interest on deposits, all without an intermediary.

DeFi and Web3 unlocks the ability for participants to “become their own banks”, opening a world of opportunities for those previously restricted by financial, geographical, and identity barriers.  In our modern world of interconnectivity, every citizen of this planet should be entitled to equal access of financial services.  DLTs such as blockchain enable an automated and borderless ecosystem providing marginalized communities without financial services and legal identities the ability to participate in the global economy.

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DISCLAIMER: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement.  Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.

Blockchain, DAO, DeFi, DLT, GameFi, NFT, the Metaverse – Web3 is similar to learning a new language and the barrier to entry obscures the paradigm shift unfolding worldwide. Web3 represents the third generation of the internet, a decentralized and user-owned version of the web, where participants control and self-custody their data and digital assets while interacting with each other directly. The arrival of Web3 is reminiscent of the slow and unfriendly “static web” of the early 90s, where users accessing AOL with dial-up were unable to imagine the evolution and impact of the technology in the subsequent decades. Let’s discuss Web3 and the paradigm shift to self-custody.

Web 2.0

The iteration of the internet we are familiar with is centralized and dependent on companies providing a service while storing your assets and personal data in servers owned by the company. For example, when you use Facebook, you are asking the company’s servers permission to access your data and their services. If Facebook or the servers of any company experience downtime, then the user is unable to access the service and their data.

This model of the internet requires trust in centralized companies, a prerequisite becoming increasingly challenging to the public this past decade. In fact, Web3 resolves this concern by enabling self-custody of user data and globally accessible decentralized applications [DApps] not dependent on a single company. Because, underneath the hood is blockchain technology, an immutable database software, which is one type of Distributed Ledger Technology [DLT] forming the backbone of Web3.

Digital Wallets are a gateway to Web3 and allow users to interact with blockchain-enabled applications on the new internet. Popular software and hardware wallets, such as MetaMask and Ledger Nano, provide the ability to self-custody digital assets and personal data while serving as a login for all the DApps users encounters. Web3 eliminates the need to memorize hundreds of usernames and passwords while entrusting your data with every company where you transact.

Paradigm Shift to Self-Custody

The paradigm shift to self-custody is a major change in the way we interact with our belongings and others worldwide. Innovation takes time and the promises of Web3 will not happen overnight. Anyone old enough to remember AOL and Netscape could never imagine the world we live in today. As Web3 continues to shape a more connected tomorrow the measurable impact of this technology on our lives will grow increasingly apparent over the next decade.

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DISCLAIMER: This material is for informational purposes only and not intended to provide financial, investment, legal, or tax advice. Information is strictly educational and not an endorsement or solicitation to buy or sell any assets or to participate in any investment or trading strategy. No representation or warranty is made, express or implied, as to the accuracy and completeness of the information. Links to third-party websites in the material do not imply endorsement. Please consult with your own accountant, attorney, investment or other certified professional advisor in relation to any investment decision.