Mapleblock Capital

We talked about the rise of Tokenised treasury securities in our June newsletter. To know more pls read at: https://lnkd.in/dbaHaQ7K Tokenized Treasuries are digital versions of government bonds on blockchain networks, offering improved efficiency, transparency, and liquidity. The market has surged 10x, exceeding $1.5B in 2024, driven by institutional and retail adoption. This growth signals a perception shift in how government securities are traded. Key players like BlackRock, Franklin Templeton, and Matrixport are leading the charge. BlackRock's BUIDL fund, the largest tokenized treasury fund, has amassed $473M in deposits. The global tokenization market is projected to reach $5.6B by 2026, growing at 19% CAGR, indicating a robust future for this innovative financial instrument. Amongst the chains, Ethereum leads with over $1B in tokenized US Treasuries, followed by Stellar and Polygon. Smart contracts handle minting, distribution, and automated payments. Oracles provide real-time data, ensuring smart contracts react to market changes, and creating a more responsive and efficient system for treasury management. Cross-chain interoperability is crucial for the growth of tokenized treasuries. Projects like Chainlink's CCIP and Axelar enable secure transfers across different blockchains. This allows for greater liquidity and the creation of new financial products using tokenized treasuries as building blocks, expanding the potential use cases and market reach. Major financial institutions like BNY Mellon, Citi, and Clearstream are collaborating with blockchain projects to connect traditional finance with public blockchains. This addresses challenges in data privacy, operational risk, and legal liability, paving the way for broader adoption of tokenized treasuries in mainstream finance. Tokenized Treasuries offer unique advantages: fractional ownership, 24/7 trading, faster settlements, and integration with DeFi protocols. They provide a bridge between traditional finance and the crypto world, attracting both institutional and retail investors. This democratization of access could reshape investment patterns in government securities. The coexistence of Tokenized Treasuries, Real World Assets (RWAs), and Central Bank Digital Currencies (CBDCs) is shaping a more coherent, transparent, and accessible financial system. This synergy is driving innovation and adoption in the broader blockchain ecosystem, potentially transforming how we interact with financial markets. Relevant regulatory frameworks are also maturing in 2024. The growing interest and research from major private markets financial players and Govt. bodies also suggest a promising future for tokenized treasuries, which will be key to unlocking their full potential. This evolution could lead to new investment strategies, improved liquidity, and more inclusive financial systems.

Happy to announce our investment in Canza Finance with Polychain Capital and others. Investment thesis: https://lnkd.in/dt8HDSvH Canza Finance is a Web3 neobank that facilitates cross-border payments for African startups. Africa holds immense potential, yet faces unique financial challenges. Despite rich resources, African countries struggle due to financial infrastructure barriers. Currency devaluation, forex scarcity, and limited access to central bank rates hinder growth. The Africa continent is heavily dependent on imports which needs US dollar to settle. The scarcity of the forex resulted in the parallel black market that trades at a significant premium to the central bank rates providing a big hurdle to the local businesses impacting Africa Canza leverages crypto to overcome cross-border transaction hurdles with its OTC desk, Jara Network. This empowers FX agents with seamless transactions, efficient brokerage services, and a faster settlement time, all contributing to intra-Africa trade growth. Baki is a decentralized FX exchange aiming to bridge African currencies and USD markets. Baki introduces on-chain synthetic assets, zTokens, pegged to African currencies. Users can mint zTokens against USDC, maintainin a collateral ratio to provide stability.

We covered how Bitcoin ETF could reshape the financial landscape in our November newsletter. You can read in detail at: https://lnkd.in/dPU3fnmD A few knows, first Bitcoin Spot ETF launched in Europe following the approval of the initial BTC ETF in 2020 on Bermuda's stock exchange. Now US SEC is on the verge of regulating it. Bitcoin Spot ETFs aim to mirror Bitcoin's price, holding the cryptocurrency securely in digital wallets managed by custodians. Units are issued based on the Bitcoin held, and market makers maintain liquidity, ensuring a stable market for easy buying and selling. Spot ETFs offer traditional investors a gateway into Bitcoin without the need for a digital wallet or navigating crypto exchanges. The brokerage handles custody, simplifying the process and attracting a new wave of investors to the digital currency space. The advantages of Spot Bitcoin ETFs are significant: increased liquidity, better ease of access, regulatory oversight, transparency, and security. These factors not only benefit investors but also legitimize Bitcoin as a recognized asset class among traditional players. As the world leans towards digitization, the rising number of internet users seeks a non-sovereign asset. Bitcoin's role as a digital alternative becomes more crucial, especially with only 8% of internet users currently in the crypto space. Massive untapped potential awaits. The potential impact of a Spot Bitcoin ETF is enormous. It signals Bitcoin's transition from a niche asset to a regulated entity within the traditional financial system. The sheer size of the U.S. capital markets could amplify the impact, with a $7.0 trillion ETF market. We’re going to witness one of the most impactful event with the approval of BTC spot ETF by US that will change the game for many. Our monthly newsletters are also available at: https://lnkd.in/d8t7nzjJ

Today Dean Takahashi reports in VentureBeat about our partnership with Aptos Labs to seamlessly operate on Aptos and drive mass #web3gaming adoption. Four publishers - CIMU Games (https://www.cimugames.com/), Minijuegos.com, ToroFun (https://torofun.com/en/), and Aeria Canada Studio Inc. - releasing titles by EOY with an addressable web2 player base of about 15m MAU currently, who will be entering #web3 powered by READYgg +Aptos. These games - operating on iOS, Android, PC, and in-browser - include a range of web3 elements- collectible, tradable assets; player-created in-game NFTs via UGC; "game runs" minted as NFTs that can be launched as tournaments with prizes; questing features that unlock NFTs based on game progression; and platform-wide loyalty systems on-chain to increase player retention and loyalty. All operating with blazing transaction times, and stable gas fees. We're grateful to the team at Aptos for their vision and support - Mo S., Vinayak Rao, Sherwin Jiang for sharing our vision! 🚀🚀🚀 Come have a look and see what you can build with READYgg+Aptos! (ready.gg)

We covered the topic of "Blockchain Rollups" in our August Newsletter. You can read it at: https://lnkd.in/dmKT4Vt6 This thesis of ours allowed us to invest in Taiko Labs as well. Ethereum's journey in the world of crypto and Web3 has been nothing short of spectacular. Yet, a significant challenge looms, scalability. As Ethereum's activity surges, need for scaling solutions intensify. Ethereum's core devs are dedicated to improvement through updates, starting with The Merge. Enter Rollups – the ideal scalability solution. Layer 2 scaling offers prompt solutions while preserving decentralization. Implementing them involves hardware/software development, tailored for specific use cases. Options include sidechains, rollups, state channels, and plasma. The need for Rollups arises from limited block space. Ethereum blocks have a finite capacity. This can lead to congestion and high gas bidding. Scalability is crucial for usability, and Ethereum's focus on Rollups reflects this priority. Optimistic Rollups assume transaction data submitted to Ethereum is accurate. Disputes involve staked ETH tokens, ensuring honesty. A fraud-proof process validates transactions on the main Ethereum network, with some trade-offs while zk-Rollups optimize transaction processing. Operators submit summaries and validity proofs, reducing data size and user fees. Zero-knowledge proofs validate transactions privately and securely. Efficiency is their strength. Comparing zk-Rollups and Optimistic Rollups: Both offer scalability, but with differences in security, efficiency, and speed. Understanding their trade-offs is crucial for Ethereum's future.