📈 $16 Trillion RWAs: What to Look for?

Happy Friday.

Crypto market remains flat at $1.2T market cap. Gemini wants to do an offshore derivatives exchange, while Binance reportedly controls 92% of the BTC spot market.

The next few years of crypto exchange dynamics will be interesting. 

In Today's Email:

• What Matters: $16 trillion RWAs potential 📈

• Founders-Investors Highlight: Scott Eaton, CEO of Carbonplace 🌱

• Deal Flows: Ledger $109M Series C+ 💰

We plan to start a weekend issue breaking down crypto businesses. Reply to this email to let us know what protocols/companies you want us to cover!

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WHAT MATTERS

Real World Assets: $16 Trillion by 2030

State of play: Amidst the increasing regulatory scrutiny, crypto’s attention has shifted towards real world assets (RWAs). BCG forecasts that the tokenization of global illiquid assets will be a $16 trillion business by 2030.

• Citi predicts that tokenized securities will reach $4 trillion by 2030.

• BlackRock’s Larry fink has also been bullish on RWAs.

The key takeaway: Let me get this straight. I’ve been around since 2016. While RWAs development is exciting, it’s also the number one signal that “crypto-native excitement” has bottomed.

• Remember all of those “blockchains, not Bitcoin” talking points? Tread lightly

Why it matters: That said, clarity on RWAs product will be a net good for the crypto industry. Even if its permissioned, the capital injection and the attention will give the boost necessary for crypto-native ideas and products.

• RWAs protocols have done 1,599 loans amounting to $4.28 billion in total loans value and $468M active loans value.

For builders: Here’s a good tool for builders interested in RWAs. We’ve seen large investments in RWA projects that try to bridge the funding gap between the US and Emerging Markets. However, there’s no clear winner yet. This is a great space to be in.

For investors: Any clarity on how RWAs would be treated will set precedents for dApps with revenue sharing mechanism.

• Right now, every protocol with some sort of revenue sharing mechanisms, even those with pseudonymous founders, are at risk once they get any form of notoriety (see: GMX).

BUILDER-INVESTOR HIGHLIGHT

Scott Eaton, CEO of Carbonplace

Scott Eaton is the CEO of Carbonplace, a blockchain-enabled platform tackling how carbon credits are traded. Previously, he had been CEOs for other firms, a fintech firm called Nivaura, and a bond trading software/analytics platform called Algomi.

• Carbonplace raised $45m in February 2023

• The round was led by BBVA, BNP Paribas, CIBC, Itau Unibanco, National Australia Bank, NatWest, Standard Chartered, SMBC, and UBS.

Previous backgrounds: Scott is an extremely experienced operator in the financial space. He has held positions as Managing Director of Deutsche Bank and Executive Director at UBS.

The big idea: The global carbon credit markets have been relatively opaque. Using blockchain, and with the buy-in of many financial institutions, Carbonplace aims to build a commercial marketplace to increase the efficiency and transparency of this market.

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DEAL FLOWS

Ledger $109M Series C Extension

Deal flows remain steady this week 🤝 — we saw $260M+ in deals.

Ledger $109M raise: Crypto hardware wallet creator Ledger has added an additional €100 million to its Series C. The valuation of the company remains the same, approximately $1.4 billion. Ledger’s last raised $385M at the same valuation in 2021.

• Ledger has sold 6 million+ devices since 2014.

• New investors include: True Global Ventures, Digital Finance Group, and VaynerFund.

• Ledger recently announced Ledger Stax, which was designed in partnership with Tony Fadell, the designer of iPod.

Deal flows in the past week:

• Narwhal Finance, $1M Seed Round

• Cega, $5M Seed Round

• Econia Labs, $6.5M Seed Round

• Conduit, $7M Seed Round

• Particle Network, $7M Seed Round

• Hadean, $5M Series A

• EigenLayer, $50M Series A

• LandVault, $3M Series B

• Ledger, $109M Series C Extension

• Polytrade, $3.8M Unknown Round

• Radix, $10M Unknown Round

• Orderly Network, Undisclosed $ Round

• MStable, Undisclosed $ Acquisition

• PoseiSwap, $1.5M Strategic Round

• So-Col, $4.5M Token Round

• Hydra Ventures, $10M DAO Fund

• Fetch, $40M Equity and Token Round

QUICK BITES

• Gemini prepares overseas derivatives exchange.

• OKX to return $157M in frozen FTX and Alameda assets.

• Gensler states that existing rules is enough for crypto, legislation unnecessary.

• Do Kwon faces US and South Korea extradition.

• Citi forecasts $4 trillion tokenized securities market by 2030.

• Catherine Coley enlists lawyer for US investigations.

• Circle sees $10B USDC outflows.

• Justin Sun reportedly lost his diplomatic status.

• 3AC Kyle Davies ordered to respond to subpoena in 2 weeks.

• XRP soared amidst hope of Ripple-SEC verdict.

MEME & NOTEWORTHY READS

• @thedefiedge’s thread on real world assets.

• Joel John’s read on airdrops.

• Catrina Wang’s read on Flashbots business.

Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.