135 posts tagged with "Crypto"

Introduction​

Digital assets are no longer the speculative fringe of finance; they have become a mainstream allocation for pension funds, endowments, corporate treasuries and sovereign wealth funds. In 2025, macro‑economic conditions (easing monetary policy and lingering inflation), regulatory clarity and maturing infrastructure encouraged institutions to increase exposure to crypto assets, stablecoins and tokenized real‑world assets (RWAs). This report synthesizes up‑to‑date data on institutional flows into digital assets, highlighting allocation trends, the vehicles used, and the drivers and risks shaping the market.

Macro environment and regulatory catalysts​

• Monetary tailwinds and search for yield. The Federal Reserve began cutting interest rates in mid‑2025, easing financial conditions and reducing the opportunity cost of holding non‑yielding assets. AInvest notes that the first rate cut triggered a $1.9 billion surge in institutional inflows during the week of September 23, 2025. Lower rates also drove capital out of traditional safe‑havens into tokenized treasuries and higher‑growth crypto assets.
• Regulatory clarity. The U.S. CLARITY Act, the stablecoin‑focused GENIUS Act (July 18 2025) and the repeal of SEC Staff Accounting Bulletin 121 removed custodial hurdles and provided a federal framework for stablecoins and crypto custody. The European Union’s MiCAR regulation became fully operational in January 2025, harmonising rules across the EU. EY’s 2025 institutional investor survey found that regulatory clarity is perceived as the number‑one catalyst for growth.
• Infrastructure maturation. Multi‑party computation (MPC) custody, off‑exchange settlement, tokenization platforms and risk‑management models made digital assets safer and more accessible. Platforms like Cobo emphasise wallet‑as‑a‑service solutions and programmable payment rails to meet institutional demand for secure, compliant infrastructure.

Institutional allocation trends​

Overall penetration and allocation sizes​

• Widespread participation. EY’s survey of 352 institutional investors (January 2025) reports that 86 % of respondents already hold or intend to hold digital assets. A majority (85 %) increased their allocations in 2024 and 59 % expect to allocate more than 5 % of assets under management (AUM) to crypto by the end of 2025. The Economist Impact research brief similarly finds that 69 % of institutions planned to increase allocations and that crypto holdings were expected to reach 7.2 % of portfolios by 2027.
• Motivations. Institutions cite higher risk‑adjusted returns, diversification, inflation hedging, technological innovation and yield generation as primary reasons for investing. Many investors now view under‑exposure to crypto as a portfolio risk.
• Diversification beyond Bitcoin. EY reports that 73 % of institutions hold altcoins beyond Bitcoin and Ether. Galaxy’s July 2025 lending commentary shows hedge funds executing $1.73 billion in short ETH futures while simultaneously pouring billions into spot ETH ETFs to capture a 9.5 % annualised basis yield. CoinShares’ weekly flow data highlight sustained inflows into altcoins like XRP, Solana and Avalanche even when Bitcoin funds see outflows.

Preferred investment vehicles​

• Exchange‑traded products (ETPs). The EY survey notes that 60 % of institutions prefer regulated vehicles (ETFs/ETPs). Spot Bitcoin ETFs launched in the U.S. in January 2024 quickly became a primary access point. By mid‑July 2025, global Bitcoin ETF AUM reached $179.5 billion, with more than $120 billion in U.S.‑listed products. Chainalysis reports that assets in tokenized U.S. treasury money‑market funds (e.g., Superstate USTB, BlackRock’s BUIDL) quadrupled from $2 billion in August 2024 to over $7 billion by August 2025, giving institutions a compliant, yield‑bearing on‑chain alternative to stablecoins.
• DeFi and staking. DeFi participation is rising from 24 % of institutions in 2024 to an expected 75 % by 2027. Galaxy notes that lending protocols saw elevated borrowing rates in July 2025, causing liquid staking tokens to de‑peg and underscoring both the fragility and maturity of DeFi markets. Yield farming strategies and basis trades produced double‑digit annualised returns, attracting hedge funds.
• Tokenized real‑world assets. About 57 % of institutions in EY’s survey are interested in tokenizing real‑world assets. Tokenized treasuries have grown over 300 % year‑on‑year: the market expanded from about $1 billion in March 2024 to roughly $4 billion by March 2025. Unchained’s analysis shows that tokenized treasuries grew 20 × faster than stablecoins and offer roughly 4.27 % yields. Chainalysis notes that tokenized treasury funds quadrupled to $7 billion by August 2025, while stablecoin volumes also surged.

Flows into Bitcoin and Ethereum ETFs​

Surge of inflows after ETF launches​

• Launch and early inflows. U.S. spot Bitcoin ETFs began trading in January 2024. Amberdata reports that January 2025 saw net inflows of $4.5 billion into these ETFs. MicroStrategy’s treasury company added 11,000 BTC (~$1.1 billion), illustrating corporate participation.
• Record assets and Q3 2025 surge. By Q3 2025, U.S. spot Bitcoin ETFs had attracted $118 billion of institutional inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) commanding $86 billion AUM and net inflows of $54.75 billion. Global Bitcoin ETF AUM approached $219 billion by early September 2025. Bitcoin’s price rally to ~$123,000 by July 2025 and the SEC’s approval of in‑kind creations boosted investor confidence.
• Ethereum ETF momentum. Following SEC approvals of spot Ethereum ETFs in May 2025, ETH‑based ETPs attracted heavy inflows. VanEck’s August 2025 recap notes $4 billion of inflows into ETH ETPs in August, while Bitcoin ETPs saw $600 million outflows. CoinShares’ June 2 report highlighted a $321 million weekly inflow into Ethereum products, marking the strongest run since December 2024.

Short‑term outflows and volatility​

• US‑led outflows. CoinShares’ February 24 2025 report recorded $508 million of outflows after an 18‑week run of inflows, driven mainly by U.S. Bitcoin ETF redemptions. A later report (June 2 2025) noted modest Bitcoin outflows while altcoins (Ethereum, XRP) continued to see inflows. By September 29 2025, digital asset funds faced $812 million in weekly outflows, with the U.S. accounting for $1 billion in redemptions. Switzerland, Canada and Germany still recorded inflows of $126.8 million, $58.6 million and $35.5 million respectively.
• Liquidity and macro pressures. AInvest’s Q3 2025 commentary notes that leveraged positions faced $1.65 billion in liquidations and that Bitcoin treasury purchases fell 76 % from July peaks due to hawkish Federal Reserve signals. Galaxy highlights that while 80,000 BTC (~$9 billion) was sold OTC in July 2025, the market absorbed the supply with minimal disruption, indicating growing market depth.

Diversification into altcoins and DeFi​

• Altcoin flows. CoinShares’ September 15 report recorded $646 million inflows into Ethereum and $145 million into Solana, with notable inflows into Avalanche and other altcoins. The February 24 report noted that even as Bitcoin funds faced $571 million outflows, funds tied to XRP, Solana, Ethereum and Sui still attracted inflows. AInvest’s September 2025 piece highlights $127.3 million of institutional inflows into Solana and $69.4 million into XRP, along with year‑to‑date Ethereum inflows of $12.6 billion.
• DeFi yield strategies. Galaxy’s analysis illustrates how institutional treasuries use basis trades and leveraged lending to generate yield. BTC’s 3‑month annualized basis widened from 4 % to nearly 10 % by early August 2025, encouraging leveraged positions. Hedge funds built $1.73 billion of short ETH futures while buying spot ETH ETFs, capturing ~9.5 % yields. Elevated borrowing rates on Aave (peaking at ~18 %) triggered deleveraging and liquid staking token de‑pegs, exposing structural fragility but also demonstrating a more orderly response than previous crises.
• DeFi growth metrics. Total value locked (TVL) in DeFi reached a three‑year high of $153 billion by July 2025, according to Galaxy. VanEck reports that DeFi TVL increased 11 % month‑over‑month in August 2025, and the supply of stablecoins across blockchains grew to $276 billion, a 36 % increase year‑to‑date.

Stablecoins and tokenized cash​

• Explosive growth. Stablecoins provide the plumbing for crypto markets. Chainalysis estimates that monthly stablecoin transaction volumes exceeded $2–3 trillion in 2025, with adjusted on‑chain volume of nearly $16 trillion between January and July. McKinsey reports that stablecoins circulate ~$250 billion and process $20–30 billion of on‑chain transactions per day, amounting to more than $27 trillion annually. Citi estimates that stablecoin issuance increased from $200 billion at the start of 2025 to $280 billion, and forecasts issuance could reach $1.9 trillion (base case) to $4 trillion by 2030.
• Tokenized treasuries and yield. As discussed earlier, tokenized U.S. treasuries grew from $1 billion to $4+ billion between March 2024 and March 2025, and Chainalysis notes AUM of $7 billion by August 2025. The yield on tokenized treasuries (~4.27 %) appeals to traders seeking to earn interest on collateral. Prime brokerages such as FalconX accept tokenized money‑market tokens as collateral, signalling institutional acceptance.
• Payments and remittances. Stablecoins facilitate trillions of dollars of remittances and cross‑border settlements. They are widely used for yield strategies and arbitrage, but regulatory frameworks (e.g., GENIUS Act, Hong Kong’s Stablecoin Ordinance) are still evolving. Flagship Advisory Partners reports that stablecoin transaction volumes reached $5.7 trillion in 2024 and grew 66 % in Q1 2025.

Venture capital and private‑market flows​

• Renewed venture funding. AMINA Bank’s analysis notes that 2025 marked a turning point for crypto fundraising. Venture capital investment reached $10.03 billion in Q2 2025—double the level a year earlier, with $5.14 billion raised in June alone. Circle’s $1.1 billion IPO in June 2025 and subsequent public listings of firms like eToro, Chime and Galaxy Digital signalled that compliant, revenue‑generating crypto firms could access deep public‑market liquidity. Private placements targeted Bitcoin accumulation and tokenization strategies; Strive Asset Management raised $750 million and TwentyOneCapital $585 million. Securitize launched an institutional crypto index fund with $400 million anchor capital.
• Sector concentration. In H1 2025, trading and exchanges captured 48 % of VC capital, DeFi and liquidity platforms 15 %, infrastructure and data 12 %, custody and compliance 10 %, AI‑powered decentralized infrastructure 8 % and NFTs/gaming 7 %. Investors prioritised firms with validated revenue and regulatory alignment.
• Projected institutional flows. A forecasting study by UTXO Management and Bitwise estimates that institutional investors could drive $120 billion of inflows into Bitcoin by the end of 2025 and $300 billion by 2026, implying acquisition of over 4.2 million BTC (≈20 % of supply). They project that nation‑states, wealth‑management platforms, public companies and sovereign wealth funds could collectively contribute these inflows. Wealth‑management platforms alone control ~$60 trillion in client assets; even a 0.5 % allocation would generate $300 billion of inflows. The report argues that Bitcoin is transitioning from a tolerated asset to a strategic reserve for governments, with bills pending in several U.S. states.

Risks and challenges​

• Volatility and liquidity events. Despite maturing markets, digital assets remain volatile. September 2025 saw $903 million net outflows from U.S. Bitcoin ETFs, reflecting risk‑off sentiment amid Fed hawkishness. A wave of $1.65 billion in liquidations and a 76 % drop in corporate Bitcoin treasury purchases underscored how leverage can amplify downturns. DeFi deleveraging events caused liquid staking tokens to de‑peg.
• Regulatory uncertainty outside major jurisdictions. While the U.S., EU and parts of Asia have clarified rules, other regions remain uncertain. SEC enforcement actions and MiCAR compliance burdens can drive innovation offshore. Hedgeweek/Blockchain News notes that outflows were concentrated in the U.S. whereas Switzerland, Canada and Germany still saw inflows.
• Custody and operational risks. Large stablecoin issuers still operate in a regulatory grey zone. Run risk on major stablecoins and valuation opacity for certain crypto assets pose systemic concerns. The Federal Reserve warns that stablecoin run risk, leverage in DeFi platforms and interconnectedness could threaten financial stability if the sector continues to grow without robust oversight.

Conclusion​

Institutional flows into digital assets accelerated markedly in 2025, transforming crypto from a speculative niche into a strategic asset class. Surveys show that most institutions either already hold or plan to hold digital assets, and the average allocation is poised to exceed 5 % of portfolios. Spot Bitcoin and Ethereum ETFs have unlocked billions in inflows and catalyzed record AUM, while altcoins, DeFi protocols and tokenized treasuries offer diversification and yield opportunities. Venture funding and corporate treasury adoption also signal confidence in the long‑term utility of blockchain technology.

Drivers of this institutional wave include macro‑economic tailwinds, regulatory clarity (MiCAR, CLARITY and the GENIUS Act), and maturing infrastructure. Nevertheless, volatility, leverage, custody risk and uneven global regulation continue to pose challenges. As stablecoin volumes and tokenized RWA markets expand, oversight will be critical to avoid systemic risks. Looking ahead, the intersection of decentralized finance, tokenization of traditional securities, and integration with wealth‑management platforms may usher in a new era where digital assets become a core component of institutional portfolios.

Every blockchain that has ever achieved scale has done so by making every validator repeat the same work. That single design choice — call it the replication requirement — has capped throughput for decades. LayerZero's Zero Network proposes to eliminate it entirely, and the institutional partners signing on suggest the industry may be taking that claim seriously.

What if your ability to spot an emerging crypto trend before the crowd was worth money? Not in a vague "knowledge is power" sense, but literally — with a token price attached to your insight and a market ready to bid on it?

That's the promise of Information Finance, or InfoFi. Coined as a concept by Vitalik Buterin in his November 2024 essay "From prediction markets to info finance," InfoFi describes a class of protocols that use financial mechanisms to extract, aggregate, and price information as a public good. By early 2025, the sector had grown to a $381 million market cap. By late 2025, it had become one of the most hotly contested battlegrounds in Web3.

But InfoFi is not one thing. Beneath the umbrella term live four distinct verticals, each with its own mechanics, power players, and competitive dynamics. Understanding where each vertical stands — and where the lines blur — is essential for anyone trying to navigate this space intelligently.

By 2026, the average user on a DeFi platform won't be a human sitting behind a screen. It will be an autonomous AI agent controlling its own crypto wallet, managing on-chain treasuries, and executing yield strategies 24/7 without coffee breaks or emotional trading decisions. Welcome to the era of DeFAI.

The numbers tell a striking story: stablecoin-focused AI agents have already captured over $20 million in total value locked on Base alone. The broader DeFAI market has exploded from $1 billion to a projected $10 billion by end of 2025, representing a tenfold increase in just twelve months. And this is only the beginning.

What Exactly Is DeFAI?​

DeFAI—the fusion of decentralized finance and artificial intelligence—represents more than just another crypto buzzword. It's a fundamental shift in how financial protocols operate and who (or what) uses them.

At its core, DeFAI encompasses three interconnected innovations:

Autonomous Trading Agents: AI systems that analyze market data, execute trades, and manage portfolios without human intervention. These agents can process thousands of data points per second, identifying arbitrage opportunities and yield optimizations that human traders would miss.

Abstraction Layers: Natural language interfaces that allow anyone to interact with complex DeFi protocols through simple commands. Instead of navigating multiple dApps and understanding technical parameters, users can simply tell an AI agent: "Move my USDC to the highest-yielding stablecoin pool."

AI-Powered dApps: Decentralized applications with embedded intelligence that can adapt strategies based on market conditions, optimize gas costs, and even predict potential exploits before they happen.

The Rise of the Algorithmic Whales​

Perhaps the most fascinating aspect of DeFAI is the emergence of what industry observers call "algorithmic whales"—AI agents that control substantial on-chain capital and execute strategies with mathematical precision.

Fungi Agents, launched in April 2025 on Base, exemplifies this new breed. These agents focus exclusively on USDC, allocating funds across platforms like Aave, Morpho, Moonwell, and 0xFluid. Their strategy? High-frequency rebalancing optimized for gas efficiency, constantly hunting for the best risk-adjusted yields across the DeFi ecosystem.

The capital under AI agent management is expected to surpass traditional hedge funds by 2026. Unlike human fund managers, these agents operate continuously, responding to every market movement in real-time. They don't panic sell during crashes or FOMO buy at tops—they follow their mathematical models with unwavering discipline.

Research from Fetch.ai demonstrates that AI agents integrated with large language models and blockchain APIs can optimize strategies based on yield curves, credit conditions, and cross-protocol opportunities that would take human analysts hours to evaluate.

Key Players Reshaping DeFi Automation​

Several projects have emerged as leaders in the DeFAI space, each bringing unique capabilities to the table.

Griffain: The Natural Language Gateway​

Built by Solana core developer Tony Plasencia, Griffain has captured a $450 million valuation—a 135% increase quarter over quarter. The platform's superpower lies in natural language processing that allows users to interact with DeFi through simple, human-like commands.

Want to rebalance your portfolio across five protocols? Just ask. Need to set up a complex yield farming strategy with automatic compounding? Describe it in plain English. Griffain translates your intent into precise on-chain actions.

HeyAnon: Simplifying DeFi Complexity​

Created by DeFi developer Daniele Sesta and backed by $20 million from DWF Labs, HeyAnon aggregates real-time project data and executes complex operations through conversational interfaces. The protocol recently launched on Sonic and partnered with IOTA Foundation to release the AUTOMATE TypeScript framework, bridging traditional development tools with DeFAI capabilities.

Orbit: The Multi-Chain Assistant​

With integrations spanning 117 chains and nearly 200 protocols, Orbit represents the most ambitious cross-chain DeFAI implementation to date. Backed by Coinbase, Google, and Alliance DAO through its parent company SphereOne, Orbit allows users to execute operations across different ecosystems through a single AI agent interface.

Ritual Network: The Infrastructure Layer​

While most DeFAI projects focus on user-facing applications, Ritual is building the underlying infrastructure. Their flagship product, Infernet, connects off-chain AI computations with on-chain smart contracts. The Ritual Virtual Machine (EVM++) embeds AI operations directly into the execution layer, enabling first-class AI support within smart contracts themselves.

Backed by $25 million in Series A funding, Ritual positions itself as the sovereign AI execution layer for Web3—a foundational piece of infrastructure that other DeFAI projects can build upon.

The Security Double-Edge Sword​

Here's where DeFAI gets genuinely concerning. The same AI capabilities that enable efficient yield optimization also create unprecedented security risks.

Anthropic's research revealed a startling statistic: AI agents have gone from exploiting 2% of smart contract vulnerabilities to 55.88% in just one year. The potential exploit revenue from AI-powered attacks has been doubling every 1.3 months. It now costs just $1.22 on average for an AI agent to exhaustively scan a contract for vulnerabilities.

When tested against 2,849 recently deployed contracts with no known vulnerabilities, advanced AI agents uncovered two novel zero-day exploits and produced working attack code—demonstrating that profitable, real-world autonomous exploitation is not just theoretical but actively feasible.

This security landscape has prompted the emergence of "Know Your Agent" (KYA) standards. Under this framework, any AI agent interacting with institutional liquidity pools or tokenized real-world assets must verify its origin and disclose the identity of its creator or legal owner.

Market Dynamics and Investment Flows​

The DeFAI market's growth reflects broader trends in both crypto and artificial intelligence:

• Total AI agent token market cap: $17 billion at peak (CoinGecko)
• DeFAI sector valuation: $16.93 billion as of January 2025, representing 34.7% of the entire crypto AI market
• Auto-compounding vaults: $5.1 billion in deposits (2025)
• Staked stablecoin pools: $11.7 billion, particularly popular during volatile markets
• Liquid yield tokenization: Over $2.3 billion across Pendle and Ether.fi

AIXBT, the AI-driven market intelligence platform developed by Virtuals, commands over 33% of total attention for AI agent tokens—though newer agents like Griffain and HeyAnon are rapidly gaining ground.

More than 60% of long-term DeFi users now engage in staking or liquidity mining monthly, with many increasingly relying on AI agents to optimize their strategies.

The Yield Optimization Revolution​

Traditional yield farming is notoriously complex. APYs fluctuate constantly, protocols introduce new incentives, and impermanent loss lurks around every liquidity provision. AI agents transform this complexity into manageable automation.

Modern DeFAI agents can:

• Evaluate protocols in real-time: Comparing risk-adjusted returns across hundreds of pools simultaneously
• Calculate optimal entry and exit points: Factoring in gas costs, slippage, and timing
• Reallocate assets dynamically: Moving capital to chase yield without requiring manual intervention
• Minimize impermanent loss: Through sophisticated hedging strategies and timing optimization

AI-driven robo-treasury agents have emerged as an efficiency layer that reallocates liquidity among lending desks, automated market-making pools, and even tokenized Treasury bills—all in response to changing yield curves and credit conditions.

Regulatory Realities and Challenges​

As DeFAI grows, regulators are taking notice. The Know Your Agent framework represents the first significant attempt to bring oversight to autonomous financial agents.

Key requirements under emerging KYA standards include:

• Verification of agent origin and ownership
• Disclosure of algorithmic strategies for institutional interactions
• Audit trails for agent-executed transactions
• Liability frameworks for agent malfunctions or exploits

These regulations create tension within the crypto community. Some argue that requiring identity disclosure undermines DeFi's foundational principles of pseudonymity and permissionlessness. Others contend that without some framework, AI agents could become vectors for market manipulation, money laundering, or systemic risk.

Looking Ahead: The 2026 Landscape​

Several trends will likely define DeFAI's evolution over the coming year:

Cross-Chain Agent Orchestration: Future agents will operate seamlessly across multiple blockchain networks, optimizing strategies that span Ethereum, Solana, and emerging L2 ecosystems simultaneously.

Agent-to-Agent Commerce: We're already seeing early signs of AI agents transacting with one another—purchasing compute resources, trading strategies, and coordinating liquidity without human intermediaries.

Institutional Integration: As KYA standards mature, traditional financial institutions will increasingly interact with DeFAI infrastructure. The integration of tokenized real-world assets creates natural bridges between AI-managed DeFi portfolios and traditional finance.

Enhanced Security Arms Race: The competition between AI agents finding vulnerabilities and AI agents protecting protocols will intensify. Smart contract auditing will become increasingly automated—and increasingly necessary.

What This Means for Builders and Users​

For developers, DeFAI represents both opportunity and imperative. Protocols that don't account for AI agent interactions—whether as users or potential attackers—will find themselves at a disadvantage. Building AI-native infrastructure is no longer optional; it's becoming a requirement for competitive DeFi protocols.

For users, the message is nuanced. AI agents can genuinely optimize yields and simplify DeFi complexity. But they also introduce new trust assumptions. When you delegate financial decisions to an AI agent, you're trusting not just the protocol's smart contracts but also the agent's training data, its optimization objectives, and its operator's intentions.

The most sophisticated DeFi users in 2026 won't be those who trade the most—they'll be those who best understand how to leverage AI agents while managing the unique risks they introduce.

DeFAI isn't replacing human participation in decentralized finance. It's redefining what participation means when your most capable counterparties don't have a heartbeat.

In the world of high finance, some conversations are so critical they happen behind closed doors. At TOKEN2049 on October 1st, one such session is set to capture the industry's attention: “Goldman Sachs with Zoltan Pozsar: Macro & Crypto.” This isn't just another panel; it's a 30-minute fireside chat governed by Chatham House Rules, ensuring that the insights shared are candid, unfiltered, and unattributable.

The stage will feature two titans of finance: Zoltan Pozsar, founder of Ex Uno Plures and the intellectual architect of the "Bretton Woods III" thesis, alongside Timothy Moe, Partner and Co-Head of Asian Macro Research at Goldman Sachs. For attendees, this is a rare opportunity to hear a visionary macro strategist and a top-tier institutional investor debate the future of money, the waning dominance of the dollar, and the explosive role of digital assets.

The Speakers: A Visionary Meets an Institutional Powerhouse​

To understand the weight of this session, one must understand the speakers:

• Zoltan Pozsar: Widely regarded as one of Wall Street's most influential thinkers, Pozsar is a former senior adviser at the U.S. Treasury and strategist at the New York Fed. He is most famous for mapping the "shadow banking" system and, more recently, for his compelling "Bretton Woods III" thesis, which argues that we are shifting from a dollar-centric financial system to one based on "outside money" like commodities, gold, and potentially, crypto.
• Timothy Moe: A veteran of Asian markets, Moe leads Goldman Sachs' regional equity strategy, guiding the firm’s institutional clients through the complexities of 11 Asia-Pacific markets. With a career spanning decades at firms like Salomon Brothers and Jardine Fleming before becoming a partner at Goldman in 2006, Moe brings a grounded, practical perspective on how global macro trends translate into real-world investment decisions.

Pozsar’s Thesis: The Dawn of Bretton Woods III​

At the heart of the discussion is Pozsar’s transformative vision of the global financial order. He argues the world is moving away from a system built on "inside money" (fiat currencies and government debt) towards one underpinned by "outside money" – tangible assets outside the control of a single sovereign issuer.

His core arguments include:

• A Multipolar Monetary World: The era of absolute U.S. dollar dominance is ending. Pozsar foresees a system where the Chinese renminbi and the euro play larger roles in trade settlement, with gold re-emerging as a neutral reserve asset.
• Persistent Inflation and New Portfolios: Forget the inflation of the 1970s. Pozsar believes chronic under-investment in the real economy will keep prices high for the foreseeable future. This renders the traditional 60/40 stock/bond portfolio obsolete, leading him to suggest a new allocation: 20% cash, 40% equities, 20% bonds, and 20% commodities.
• De-Dollarization is Accelerating: Geopolitical fractures and Western sanctions have pushed nations like China to build parallel financial plumbing, using currency swap lines and gold exchanges to bypass the dollar framework.

Where Does Bitcoin Fit In?​

For the TOKEN2049 audience, the key question is how crypto fits into this new world. Pozsar's view is both intriguing and cautious.

He acknowledges that the core thesis of Bitcoin—a scarce, private, non-state form of money—aligns perfectly with his concept of "outside money." He appreciates that its value comes from being outside government control.

However, he raises a critical question: money has always been a public or public-private partnership. A purely private money with no state sanction is historically unprecedented. He humorously notes that Western central bank digital currencies (CBDCs) "miss the point," as they fail to offer the very non-inflatable, non-governmental properties that attract people to Bitcoin in the first place. His primary concern for Bitcoin remains the tail risk of a cryptographic failure, a technical vulnerability that physical gold doesn't share.

Bridging Theory and Action: The Goldman Sachs Perspective​

This is where Timothy Moe’s role becomes crucial. As a strategist for Goldman Sachs in Asia, Moe will be the bridge between Pozsar’s grand theories and the actionable questions on investors' minds. The discussion is expected to delve into:

• Asian Capital Flows: How will a multi-polar currency system affect trade and investment across Asia?
• Institutional Adoption: How do Asia's institutional investors view Bitcoin versus other commodities like gold?
• Portfolio Strategy: Does Pozsar’s 20/40/20/20 allocation model hold up under the scrutiny of Goldman's macro research?
• CBDCs in Asia: With Asian central banks leading the charge on digital currency experiments, how do they view the rise of private crypto?

Final Thoughts​

The "Goldman Sachs with Zoltan Pozsar" session is more than just a talk; it's a real-time glimpse into the strategic thinking shaping the future of finance. It brings together a prophet of a new monetary age with a pragmatic leader from the heart of the current system. The conversation promises to offer a nuanced, high-level perspective on whether crypto will be a footnote in financial history or a cornerstone of the emerging Bretton Woods III order. For anyone invested in the future of money, this is a dialogue not to be missed.

What if the most lucrative real estate in crypto isn't a Layer 1 protocol or a DeFi application—but the pipes beneath your digital dollars?

Circle, Stripe, and Tether are betting hundreds of millions that controlling the settlement layer for stablecoins will prove more valuable than the stablecoins themselves. In 2025, three of the industry's most powerful players announced purpose-built blockchains designed specifically for stablecoin transactions: Circle's Arc, Stripe's Tempo, and Plasma. The race to own stablecoin infrastructure has begun—and the stakes couldn't be higher.

Overview​

Digital asset treasuries (DATs) are publicly listed corporations whose primary business model is to accumulate and manage crypto‑tokens such as ETH or SOL. They raise capital through stock offerings or convertible bonds and use the proceeds to purchase tokens, stake them to earn yield, and grow tokens per share via savvy financial engineering. DATs blend features of corporate treasuries, investment trusts and DeFi protocols; they let mainstream investors gain exposure to crypto without holding the coins directly and operate like “on‑chain banks.” The following sections synthesise the visions of four influential leaders—Tom Lee (Fundstrat/BitMine), Joseph Lubin (Consensys/SharpLink), Sam Tabar (Bit Digital) and Cosmo Jiang (Pantera Capital)—who are shaping this emerging sector.

Tom Lee – Fundstrat Co‑founder & BitMine Chairman​

Long‑term thesis: Ethereum as the neutral chain for the AI–crypto super‑cycle​

• In 2025 Tom Lee pivoted the former Bitcoin miner BitMine into an Ethereum treasury company. He argues that AI and crypto are the two major investment narratives of the decade and both require neutral public blockchains, with Ethereum offering high reliability and a decentralised settlement layer. Lee describes ETH’s current price as a “discount to the future”—he believes that the combination of institutional finance and artificial intelligence will eventually need Ethereum’s neutral public blockchain to operate at scale, making ETH “one of the biggest macro trades of the next decade”.
• Lee believes tokenised real‑world assets, stablecoins and on‑chain AI will drive unprecedented demand for Ethereum. In a Daily Hodl interview he said ETH treasuries added over 234 k ETH in one week, pushing BitMine’s holdings above 2 million ETH. He explained that Wall Street and AI moving on‑chain will transform the financial system and most of this will happen on Ethereum, hence BitMine aims to acquire 5 % of ETH’s total supply, dubbed the “alchemy of 5 %”. He also expects ETH to remain the preferred chain because of pro‑crypto legislation (e.g., CLARITY & GENIUS Acts) and described Ethereum as the “neutral chain” favoured by both Wall Street and the White House.

DAT mechanics: building shareholder value​

• In Pantera’s 2025 blockchain letter, Lee explained how DATs can create value beyond token price appreciation. By issuing stock or convertible bonds to raise capital, staking their ETH, using DeFi to earn yield and acquiring other treasuries, they can increase tokens per share and maintain a NAV premium. He views stablecoins as the “ChatGPT story of crypto” and believes on‑chain cash flows from stablecoin transactions will support ETH treasuries.
• Lee emphasises that DATs have multiple levers that make them more attractive than ETFs: staking yields, velocity (rapid issuance of shares to acquire tokens) and liquidity (ability to raise capital quickly). In a Bankless discussion he noted that BitMine moved 12 × faster than MicroStrategy in accumulating crypto and described BitMine’s liquidity advantage as critical for capturing a NAV premium.
• He also stresses risk management. Market participants must differentiate between credible leaders and those issuing aggressive debt; investors should focus on execution, clear strategy and risk controls. Lee warns that mNAV premiums compress as more companies adopt the model and that DATs need to deliver performance beyond simply holding tokens.

Vision for the future​

Lee predicts a long super‑cycle in which Ethereum underpins tokenised AI economies and digital asset treasuries become mainstream. He foresees ETH reaching US $10–12 k in the near term and much higher over a 10–15 year time horizon. He also notes that major institutions like Cathie Wood and Bill Miller are already investing in DATs and expects more Wall Street firms to view ETH treasuries as a core holding.

Joseph Lubin – Consensys Founder & SharpLink Chairman​

ETH treasuries as storytelling and yield machines​

• Lubin argues that Ethereum treasury companies are more powerful than Bitcoin treasuries because ETH is productive. By staking tokens and using DeFi, treasuries can generate yield and grow ETH per share, making them “more powerful than Bitcoin treasuries”. SharpLink converts capital into ETH daily and stakes it immediately, creating compounding growth.
• He sees DATs as a way to tell the Ethereum story to Wall Street. On CNBC he explained that Wall Street pays attention to making money; by offering a profitable equity vehicle, DATs can communicate ETH’s value better than simple messaging about smart contracts. While Bitcoin’s narrative is easy to grasp (digital gold), Ethereum spent years building infrastructure—treasury strategies highlight its productivity and yield.
• Lubin stresses that ETH is high‑powered, uncensorable money. In an August 2025 interview he said SharpLink’s goal is to build the largest trusted ETH treasury and keep accumulating ETH, with one million ETH merely a near‑term signpost. He calls Ethereum the base layer for global finance, citing that it settled over US $25 trillion in transactions in 2024 and hosts most real‑world assets and stablecoins.

Competitive landscape and regulation​

• Lubin welcomes new entrants into the ETH treasury race because they amplify Ethereum’s credibility; however, he believes SharpLink holds an advantage due to its ETH‑native team, staking know‑how and institutional credibility. He predicts ETFs will eventually be allowed to stake, but until then treasury companies like SharpLink can fully stake ETH and earn yield.
• In a CryptoSlate interview he noted that the supply–demand imbalance for ETH and daily purchases by treasuries will accelerate adoption. He emphasised that decentralisation is the direction of travel and expects both ETH and BTC to continue rising as the world becomes more decentralised.

SharpLink’s execution​

• SharpLink quietly shifted its focus from sports betting technology to Ethereum in early 2025. According to shareholder filings, it converted significant portions of its liquid reserves into ETH—176 270 ETH for $462.9 million in July 2025 and another 77 210 ETH for $295 million a day later. An August 2025 direct offering raised $400 million and a $200 million at‑the‑market facility, pushing SharpLink’s reserves beyond 598 800 ETH.
• Lubin says SharpLink accumulates tens of millions of dollars in ETH daily and stakes it via DeFi to generate yield. Standard Chartered analysts have noted that ETH treasuries like SharpLink remain undervalued relative to their holdings.

Sam Tabar – CEO of Bit Digital​

Rationale for pivoting to Ethereum​

• After profitably running a Bitcoin mining and AI infrastructure business, Sam Tabar led Bit Digital’s complete pivot into an Ethereum treasury and staking company. He sees Ethereum’s programmable smart‑contract platform, growing adoption and staking yields as capable of rewriting the financial system. Tabar asserts that if BTC and ETH had launched simultaneously, Bitcoin might not exist because Ethereum enables trustless value exchange and complex financial primitives.
• Bit Digital sold 280 BTC and raised around $172 million to purchase over 100 k ETH. Tabar has emphasised that Ethereum is no longer a side asset but the centerpiece of Bit Digital’s balance sheet and that the firm intends to continue acquiring ETH to become the leading corporate holder. The company announced a direct offering of 22 million shares priced at $3.06 to raise $67.3 million for further ETH purchases.

Financing strategy and risk management​

• Tabar is a strong proponent of using unsecured convertible debt rather than secured loans. He warns that secured debt could “destroy” ETH treasury companies in a bear market because creditors might seize the tokens when prices fall. By issuing unsecured convertible notes, Bit Digital retains flexibility and avoids encumbering its assets.
• In a Bankless interview he compared the ETH treasury race to Michael Saylor’s Bitcoin playbook but noted that Bit Digital is a real business with cash flows from AI infrastructure and mining; it aims to leverage those profits to grow its ETH holdings. He described competition among ETH treasuries as friendly but emphasised that mindshare is limited—companies must aggressively accumulate ETH to attract investors, yet more treasuries ultimately benefit Ethereum by raising its price and awareness.

Vision for the future​

Tabar envisions a world where Ethereum replaces much of the existing financial infrastructure. He believes regulatory clarity (e.g., the GENIUS Act) has unlocked the path for companies like Bit Digital to build compliant ETH treasuries and sees the staking yield and programmability of ETH as core drivers of future value. He also highlights that DATs open the door for public‑market investors who cannot buy crypto directly, democratizing access to the Ethereum ecosystem.

Cosmo Jiang – General Partner at Pantera Capital​

Investment thesis: DATs as on‑chain banks​

• Cosmo Jiang views DATs as sophisticated financial institutions that operate more like banks than passive token holders. In an Index Podcast summary he explained that DATs are evaluated like banks: if they generate a return above their cost of capital, they trade above book value. According to Jiang, investors should focus on NAV‑per‑share growth—analogous to free cash‑flow per share—rather than token price, because execution and capital allocation drive returns.
• Jiang argues that DATs can generate yield by staking and lending, increasing asset value per share and producing more tokens than simply holding spot. One determinant of success is the long‑term strength of the underlying token; this is why Pantera’s Solana Company (HSDT) uses Solana as its treasury reserve. He contends that Solana offers fast settlement, ultra‑low fees and a monolithic design that is faster, cheaper and more accessible—echoing Jeff Bezos’s “holy trinity” of consumer wants.
• Jiang also notes that DATs effectively lock up supply because they operate like closed‑end funds; once tokens are acquired, they rarely sell, reducing liquid supply and potentially supporting prices. He sees DATs as a bridge that brings tens of billions of dollars from traditional investors who prefer equities over direct crypto exposure.

Building the pre‑eminent Solana treasury​

• Pantera has been a pioneer in DATs, anchoring early launches such as DeFi Development Corp (DFDV) and Cantor Equity Partners (CEP) and investing in BitMine. Jiang writes that they have reviewed over fifty DAT pitches and that their early success has positioned Pantera as a first call for new projects.
• In September 2025 Pantera announced Solana Company (HSDT) with more than $500 million in funding, designed to maximize SOL per share and provide public‑market exposure to Solana. Jiang’s DAT thesis states that owning a DAT could offer higher return potential than holding tokens directly or via an ETF because DATs grow NAV per share through yield generation. The fund aims to scale institutional access to Solana and leverage Pantera’s track record to build the pre‑eminent Solana treasury.
• He emphasises that the timing is critical: digital asset equities have enjoyed a tailwind as investors search for crypto exposure beyond ETFs. However, he warns that excitement will invite competition; some DATs will succeed while others fail. Pantera’s strategy is to back high‑quality teams, filter for incentive‑aligned management and support consolidation (M&A or buybacks) in downside scenarios.

Conclusion​

Collectively, these leaders see digital asset treasuries as a bridge between traditional finance and the emerging token economy. Tom Lee envisions ETH treasuries as vehicles to capture the AI–crypto super‑cycle and aims to accumulate 5 % of Ethereum’s supply; he stresses velocity, yield and liquidity as key drivers of NAV premiums. Joseph Lubin views ETH treasuries as yield‑generating machines that tell the Ethereum story to Wall Street while pushing DeFi and staking into mainstream finance. Sam Tabar is betting that Ethereum’s programmability and staking yields will rewrite financial infrastructure and warns against secured debt, promoting aggressive yet prudent accumulation through unsecured financing. Cosmo Jiang frames DATs as on‑chain banks whose success depends on capital allocation and NAV‑per‑share growth; he is building the pre‑eminent Solana treasury to showcase how DATs can unlock new growth cycles. All four anticipate that DATs will continue to proliferate and that public‑market investors will increasingly choose them as vehicles for exposure to crypto’s next chapter.

Visions from Mert Mumtaz (Helius), Udi Wertheimer (Taproot Wizards), Jordi Alexander (Selini Capital) and Alexander Good (Post Fiat)

Overview​

Token2049 hosted a panel called “The Crypto Endgame” featuring Mert Mumtaz (CEO of Helius), Udi Wertheimer (Taproot Wizards), Jordi Alexander (Founder of Selini Capital) and Alexander Good (creator of Post Fiat). While there is no publicly available transcript of the panel, each speaker has expressed distinct visions for the long‑term trajectory of the crypto industry. This report synthesizes their public statements and writings—spanning blog posts, articles, news interviews and whitepapers—to explore how each person envisions the “endgame” for crypto.

Mert Mumtaz – Crypto as “Capitalism 2.0”​

Core vision​

Mert Mumtaz rejects the idea that cryptocurrencies simply represent “Web 3.0.” Instead, he argues that the endgame for crypto is to upgrade capitalism itself. In his view:

• Crypto supercharges capitalism’s ingredients: Mumtaz notes that capitalism depends on the free flow of information, secure property rights, aligned incentives, transparency and frictionless capital flows. He argues that decentralized networks, public blockchains and tokenization make these features more efficient, turning crypto into “Capitalism 2.0”.
• Always‑on markets & tokenized assets: He points to regulatory proposals for 24/7 financial markets and the tokenization of stocks, bonds and other real‑world assets. Allowing markets to run continuously and settle via blockchain rails will modernize the legacy financial system. Tokenization creates always‑on liquidity and frictionless trading of assets that previously required clearing houses and intermediaries.
• Decentralization & transparency: By using open ledgers, crypto removes some of the gate‑keeping and information asymmetries found in traditional finance. Mumtaz views this as an opportunity to democratize finance, align incentives and reduce middlemen.

Implications​

Mumtaz’s “Capitalism 2.0” thesis suggests that the industry’s endgame is not limited to digital collectibles or “Web3 apps.” Instead, he envisions a future where nation‑state regulators embrace 24/7 markets, asset tokenization and transparency. In that world, blockchain infrastructure becomes a core component of the global economy, blending crypto with regulated finance. He also warns that the transition will face challenges—such as Sybil attacks, concentration of governance and regulatory uncertainty—but believes these obstacles can be addressed through better protocol design and collaboration with regulators.

Udi Wertheimer – Bitcoin as a “generational rotation” and the altcoin reckoning​

Generational rotation & Bitcoin “retire your bloodline” thesis​

Udi Wertheimer, co‑founder of Taproot Wizards, is known for provocatively defending Bitcoin and mocking altcoins. In mid‑2025 he posted a viral thesis called “This Bitcoin Thesis Will Retire Your Bloodline.” According to his argument:

• Generational rotation: Wertheimer argues that the early Bitcoin “whales” who accumulated at low prices have largely sold or transferred their coins. Institutional buyers—ETFs, treasuries and sovereign wealth funds—have replaced them. He calls this process a “full‑scale rotation of ownership”, similar to Dogecoin’s 2019‑21 rally where a shift from whales to retail demand fueled explosive returns.
• Price‑insensitive demand: Institutions allocate capital without caring about unit price. Using BlackRock’s IBIT ETF as an example, he notes that new investors see a US$40 increase as trivial and are willing to buy at any price. This supply shock combined with limited float means Bitcoin could accelerate far beyond consensus expectations.
• $400K+ target and altcoin collapse: He projects that Bitcoin could exceed US$400 000 per BTC by the end of 2025 and warns that altcoins will underperform or even collapse, with Ethereum singled out as the “biggest loser”. According to Wertheimer, once institutional FOMO sets in, altcoins will “get one‑shotted” and Bitcoin will absorb most of the capital.

Implications​

Wertheimer’s endgame thesis portrays Bitcoin as entering its final parabolic phase. The “generational rotation” means that supply is moving into strong hands (ETFs and treasuries) while retail interest is just starting. If correct, this would create a severe supply shock, pushing BTC price well beyond current valuations. Meanwhile, he believes altcoins offer asymmetric downside because they lack institutional bid support and face regulatory scrutiny. His message to investors is clear: load up on Bitcoin now before Wall Street buys it all.

Jordi Alexander – Macro pragmatism, AI & crypto as twin revolutions​

Investing in AI and crypto – two key industries​

Jordi Alexander, founder of Selini Capital and a known game theorist, argues that AI and blockchain are the two most important industries of this century. In an interview summarised by Bitget he makes several points:

• The twin revolutions: Alexander believes the only ways to achieve real wealth growth are to invest in technological innovation (particularly AI) or to participate early in emerging markets like cryptocurrency. He notes that AI development and crypto infrastructure will be the foundational modules for intelligence and coordination this century.
• End of the four‑year cycle: He asserts that the traditional four‑year crypto cycle driven by Bitcoin halvings is over; instead the market now experiences liquidity‑driven “mini‑cycles.” Future up‑moves will occur when “real capital” fully enters the space. He encourages traders to see inefficiencies as opportunity and to develop both technical and psychological skills to thrive in this environment.
• Risk‑taking & skill development: Alexander advises investors to keep most funds in safe assets but allocate a small portion for risk‑taking. He emphasizes building judgment and staying adaptable, as there is “no such thing as retirement” in a rapidly evolving field.

Critique of centralized strategies and macro views​

• MicroStrategy’s zero‑sum game: In a flash note he cautions that MicroStrategy’s strategy of buying BTC may be a zero‑sum game. While participants might feel like they are winning, the dynamic could hide risks and lead to volatility. This underscores his belief that crypto markets are often driven by negative‑sum or zero‑sum dynamics, so traders must understand the motivations of large players.
• Endgame of U.S. monetary policy: Alexander’s analysis of U.S. macro policy highlights that the Federal Reserve’s control over the bond market may be waning. He notes that long‑term bonds have fallen sharply since 2020 and believes the Fed may soon pivot back to quantitative easing. He warns that such policy shifts could cause “gradually at first … then all at once” market moves and calls this a key catalyst for Bitcoin and crypto.

Implications​

Jordi Alexander’s endgame vision is nuanced and macro‑oriented. Rather than forecasting a singular price target, he highlights structural changes: the shift to liquidity‑driven cycles, the importance of AI‑driven coordination and the interplay between government policy and crypto markets. He encourages investors to develop deep understanding and adaptability rather than blindly following narratives.

Alexander Good – Web 4, AI agents and the Post Fiat L1​

Web 3’s failure and the rise of AI agents​

Alexander Good (also known by his pseudonym “goodalexander”) argues that Web 3 has largely failed because users care more about convenience and trading than owning their data. In his essay “Web 4” he notes that consumer app adoption depends on seamless UX; requiring users to bridge assets or manage wallets kills growth. However, he sees an existential threat emerging: AI agents that can generate realistic video, control computers via protocols (such as Anthropic’s “Computer Control” framework) and hook into major platforms like Instagram or YouTube. Because AI models are improving rapidly and the cost of generating content is collapsing, he predicts that AI agents will create the majority of online content.

Web 4: AI agents negotiating on the blockchain​

Good proposes Web 4 as a solution. Its key ideas are:

• Economic system with AI agents: Web 4 envisions AI agents representing users as “Hollywood agents” negotiate on their behalf. These agents will use blockchains for data sharing, dispute resolution and governance. Users provide content or expertise to agents, and the agents extract value—often by interacting with other AI agents across the world—and then distribute payments back to the user in crypto.
• AI agents handle complexity: Good argues that humans will not suddenly start bridging assets to blockchains, so AI agents must handle these interactions. Users will simply talk to chatbots (via Telegram, Discord, etc.), and AI agents will manage wallets, licensing deals and token swaps behind the scenes. He predicts a near‑future where there are endless protocols, tokens and computer‑to‑computer configurations that will be unintelligible to humans, making AI assistance essential.
• Inevitable trends: Good lists several trends supporting Web 4: governments’ fiscal crises encourage alternatives; AI agents will cannibalize content profits; people are getting “dumber” by relying on machines; and the largest companies bet on user‑generated content. He concludes that it is inevitable that users will talk to AI systems, those systems will negotiate on their behalf, and users will receive crypto payments while interacting primarily through chat apps.

Mapping the ecosystem and introducing Post Fiat​

Good categorizes existing projects into Web 4 infrastructure or composability plays. He notes that protocols like Story, which create on‑chain governance for IP claims, will become two‑sided marketplaces between AI agents. Meanwhile, Akash and Render sell compute services and could adapt to license to AI agents. He argues that exchanges like Hyperliquid will benefit because endless token swaps will be needed to make these systems user‑friendly.

His own project, Post Fiat, is positioned as a “kingmaker in Web 4.” Post Fiat is a Layer‑1 blockchain built on XRP’s core technology but with improved decentralization and tokenomics. Key features include:

• AI‑driven validator selection: Instead of relying on human-run staking, Post Fiat uses large language models (LLMs) to score validators on credibility and transaction quality. The network distributes 55% of tokens to validators through a process managed by an AI agent, with the goal of “objectivity, fairness and no humans involved”. The system’s monthly cycle—publish, score, submit, verify and select & reward—ensures transparent selection.
• Focus on investing & expert networks: Unlike XRP’s transaction‑bank focus, Post Fiat targets financial markets, using blockchains for compliance, indexing and operating an expert network composed of community members and AI agents. AGTI (Post Fiat’s development arm) sells products to financial institutions and may launch an ETF, with revenues funding network development.
• New use cases: The project aims to disrupt the indexing industry by creating decentralized ETFs, provide compliant encrypted memos and support expert networks where members earn tokens for insights. The whitepaper details technical measures—such as statistical fingerprinting and encryption—to prevent Sybil attacks and gaming.

Web 4 as survival mechanism​

Good concludes that Web 4 is a survival mechanism, not just a cool ideology. He argues that a “complexity bomb” is coming within six months as AI agents proliferate. Users will have to give up some upside to AI systems because participating in agentic economies will be the only way to thrive. In his view, Web 3’s dream of decentralized ownership and user privacy is insufficient; Web 4 will blend AI agents, crypto incentives and governance to navigate an increasingly automated economy.

Comparative analysis​

Converging themes​

1. Institutional & technological shifts drive the endgame.
   • Mumtaz foresees regulators enabling 24/7 markets and tokenization, which will mainstream crypto.
   • Wertheimer highlights institutional adoption via ETFs as the catalyst for Bitcoin’s parabolic phase.
   • Alexander notes that the next crypto boom will be liquidity‑driven rather than cycle‑driven and that macro policies (like the Fed’s pivot) will provide powerful tailwinds.
2. AI becomes central.
   • Alexander emphasises investing in AI alongside crypto as twin pillars of future wealth.
   • Good builds Web 4 around AI agents that transact on blockchains, manage content and negotiate deals.
   • Post Fiat’s validator selection and governance rely on LLMs to ensure objectivity. Together these visions imply that the endgame for crypto will involve synergy between AI and blockchain, where AI handles complexity and blockchains provide transparent settlement.
3. Need for better governance and fairness.
   • Mumtaz warns that centralization of governance remains a challenge.
   • Alexander encourages understanding game‑theoretic incentives, pointing out that strategies like MicroStrategy’s can be zero‑sum.
   • Good proposes AI‑driven validator scoring to remove human biases and create fair token distribution, addressing governance issues in existing networks like XRP.

Diverging visions​

1. Role of altcoins. Wertheimer sees altcoins as doomed and believes Bitcoin will capture most capital. Mumtaz focuses on the overall crypto market including tokenized assets and DeFi, while Alexander invests across chains and believes inefficiencies create opportunity. Good is building an alt‑L1 (Post Fiat) specialized for AI finance, implying he sees room for specialized networks.
2. Human agency vs AI agency. Mumtaz and Alexander emphasize human investors and regulators, whereas Good envisions a future where AI agents become the primary economic actors and humans interact through chatbots. This shift implies fundamentally different user experiences and raises questions about autonomy, fairness and control.
3. Optimism vs caution. Wertheimer’s thesis is aggressively bullish on Bitcoin with little concern for downside. Mumtaz is optimistic about crypto improving capitalism but acknowledges regulatory and governance challenges. Alexander is cautious—highlighting inefficiencies, zero‑sum dynamics and the need for skill development—while still believing in crypto’s long‑term promise. Good sees Web 4 as inevitable but warns of the complexity bomb, urging preparation rather than blind optimism.

Conclusion​

The Token2049 “Crypto Endgame” panel brought together thinkers with very different perspectives. Mert Mumtaz views crypto as an upgrade to capitalism, emphasizing decentralization, transparency and 24/7 markets. Udi Wertheimer sees Bitcoin entering a supply‑shocked generational rally that will leave altcoins behind. Jordi Alexander adopts a more macro‑pragmatic stance, urging investment in both AI and crypto while understanding liquidity cycles and game‑theoretic dynamics. Alexander Good envisions a Web 4 era where AI agents negotiate on blockchains and Post Fiat becomes the infrastructure for AI‑driven finance.

Although their visions differ, a common theme is the evolution of economic coordination. Whether through tokenized assets, institutional rotation, AI‑driven governance or autonomous agents, each speaker believes crypto will fundamentally reshape how value is created and exchanged. The endgame therefore seems less like an endpoint and more like a transition into a new system where capital, computation and coordination converge.

The Blockchain Application Stanford Summit (BASS) kicked off the week of the Science of Blockchain Conference (SBC), bringing together innovators, researchers, and builders to explore the cutting edge of the ecosystem. Organizers Gil, Kung, and Stephen welcomed attendees, highlighting the event's focus on entrepreneurship and real-world applications, a spirit born from its close collaboration with SBC. With support from organizations like Blockchain Builders and the Cryptography and Blockchain Alumni of Stanford, the day was packed with deep dives into celestial blockchains, the future of Ethereum, institutional DeFi, and the burgeoning intersection of AI and crypto.

Dalia Maliki: Building an Orbital Root of Trust with Space Computer​

Dalia Maliki, a professor at UC Santa Barbara and an advisor to Space Computer, opened with a look at a truly out-of-this-world application: building a secure computing platform in orbit.

What is Space Computer? In a nutshell, Space Computer is an "orbital root of trust," providing a platform for running secure and confidential computations on satellites. The core value proposition lies in the unique security guarantees of space. "Once a box is launched securely and deployed into space, nobody can come later and hack into it," Maliki explained. "It's purely, perfectly tamper-proof at this point." This environment makes it leak-proof, ensures communications cannot be easily jammed, and provides verifiable geolocation, offering powerful decentralization properties.

Architecture and Use Cases The system is designed with a two-tier architecture:

• Layer 1 (Celestial): The authoritative root of trust runs on a network of satellites in orbit, optimized for limited and intermittent communication.
• Layer 2 (Terrestrial): Standard scaling solutions like rollups and state channels run on Earth, anchoring to the celestial Layer 1 for finality and security.

Early use cases include running highly secure blockchain validators and a true random number generator that captures cosmic radiation. However, Maliki emphasized the platform's potential for unforeseen innovation. "The coolest thing about building a platform is always that you build a platform and other people will come and build use cases that you never even dreamed of."

Drawing a parallel to the ambitious Project Corona of the 1950s, which physically dropped film buckets from spy satellites to be caught mid-air by aircraft, Maliki urged the audience to think big. "By comparison, what we work with today in space computer is a luxury, and we're very excited about the future."

Tomasz Stanczak: The Ethereum Roadmap - Scaling, Privacy, and AI​

Tomasz Stanczak, Executive Director of the Ethereum Foundation, provided a comprehensive overview of Ethereum's evolving roadmap, which is heavily focused on scaling, enhancing privacy, and integrating with the world of AI.

Short-Term Focus: Supporting L2s The immediate priority for Ethereum is to solidify its role as the best platform for Layer 2s to build upon. Upcoming forks, Fusaka and Glumpsterdom, are centered on this goal. "We want to make much stronger statements that yes, [L2s] innovate, they extend Ethereum, and they will have a commitment from protocol builders that Layer 1 will support L2s in the best way possible," Stanczak stated.

Long-Term Vision: Lean Ethereum and Real-Time Proving Looking further ahead, the "Lean Ethereum" vision aims for massive scalability and security hardening. A key component is the ZK-EVM roadmap, which targets real-time proving with latencies under 10 seconds for 99% of blocks, achievable by solo stakers. This, combined with data availability improvements, could push L2s to a theoretical "10 million TPS." The long-term plan also includes a focus on post-quantum cryptography through hash-based signatures and ZK-EVMs.

Privacy and the AI Intersection Privacy is another critical pillar. The Ethereum Foundation has established the Privacy and Scaling Explorations (PSC) team to coordinate efforts, support tooling, and explore protocol-level privacy integrations. Stanczak sees this as crucial for Ethereum's interaction with AI, enabling use cases like censorship-resistant financial markets, privacy-preserving AI, and open-source agentic systems. He emphasized that Ethereum's culture of connecting multiple disciplines—from finance and art to robotics and AI—is essential for navigating the challenges and opportunities of the next decade.

Sreeram Kannan: The Trust Framework for Ambitious Crypto Apps with EigenCloud​

Sreeram Kannan, founder of Eigen Labs, challenged the audience to think beyond the current scope of crypto applications, presenting a framework for understanding crypto's core value and introducing EigenCloud as a platform to realize this vision.

Crypto's Core Thesis: A Verifiability Layer "Underpinning all of this is a core thesis that crypto is the trust or verifiability layer on top of which you can build very powerful applications," Kannan explained. He introduced a "TAM vs. Trust" framework, illustrating that the total addressable market (TAM) for a crypto application grows exponentially as the trust it underwrites increases. Bitcoin's market grows as it becomes more trusted than fiat currencies; a lending platform's market grows as its guarantee of borrower solvency becomes more credible.

EigenCloud: Unleashing Programmability Kannan argued that the primary bottleneck for building more ambitious apps—like a decentralized Uber or trustworthy AI platforms—is not performance but programmability. To solve this, EigenCloud introduces a new architecture that separates application logic from token logic.

"Let's keep the token logic on-chain on Ethereum," he proposed, "but the application logic is moved outside. You can actually now write your core logic in arbitrary containers... execute them on any device of your choice, whether it's a CPU or a GPU... and then bring these results verifiably back on-chain."

This approach, he argued, extends crypto from a "laptop or server scale to cloud scale," allowing developers to build the truly disruptive applications that were envisioned in crypto's early days.

Panel: A Deep Dive into Blockchain Architecture​

A panel featuring Leiyang from MegaETH, Adi from Realo, and Solomon from the Solana Foundation explored the trade-offs between monolithic, modular, and "super modular" architectures.

• MegaETH (Modular L2): Leiyang described MegaETH's approach of using a centralized sequencer for extreme speed while delegating security to Ethereum. This design aims to deliver a Web2-level real-time experience for applications, reviving the ambitious "ICO-era" ideas that were previously limited by performance.
• Solana (Monolithic L1): Solomon explained that Solana's architecture, with its high node requirements, is deliberately designed for maximum throughput to support its vision of putting all global financial activity on-chain. The current focus is on asset issuance and payments. On interoperability, Solomon was candid: "Generally speaking, we don't really care about interoperability... It's about getting as much asset liquidity and usage on-chain as possible."
• Realo ("Super Modular" L1): Adi introduced Realo's "super modular" concept, which consolidates essential services like oracles directly into the base layer to reduce developer friction. This design aims to natively connect the blockchain to the real world, with a go-to-market focus on RWAs and making the blockchain invisible to end-users.

Panel: The Real Intersection of AI and Blockchain​

Moderated by Ed Roman of HackVC, this panel showcased three distinct approaches to merging AI and crypto.

• Ping AI (Bill): Ping AI is building a "personal AI" where users maintain self-custody of their data. The vision is to replace the traditional ad-exchange model. Instead of companies monetizing user data, Ping AI's system will reward users directly when their data leads to a conversion, allowing them to capture the economic value of their digital footprint.
• Public AI (Jordan): Described as the "human layer of AI," Public AI is a marketplace for sourcing high-quality, on-demand data that can't be scraped or synthetically generated. It uses an on-chain reputation system and staking mechanisms to ensure contributors provide signal, not noise, rewarding them for their work in building better AI models.
• Gradient (Eric): Gradient is creating a decentralized runtime for AI, enabling distributed inference and training on a network of underutilized consumer hardware. The goal is to provide a check on the centralizing power of large AI companies by allowing a global community to collaboratively train and serve models, retaining "intelligent sovereignty."

More Highlights from the Summit​

• Orin Katz (Starkware) presented building blocks for "compliant on-chain privacy," detailing how ZK-proofs can be used to create privacy pools and private tokens (ZRC20s) that include mechanisms like "viewing keys" for regulatory oversight.
• Sam Green (Cambrian) gave an overview of the "Agentic Finance" landscape, categorizing crypto agents into trading, liquidity provisioning, lending, prediction, and information, and highlighted the need for fast, comprehensive, and verifiable data to power them.
• Max Siegel (Privy) shared lessons from onboarding over 75 million users, emphasizing the need to meet users where they are, simplify product experiences, and let product needs inform infrastructure choices, not the other way around.
• Nil Dalal (Coinbase) introduced the "Onchain Agentic Commerce Stack" and the open standard X42, a crypto-native protocol designed to create a "machine-payable web" where AI agents can seamlessly transact using stablecoins for data, APIs, and services.
• Gordon Liao & Austin Adams (Circle) unveiled Circle Gateway, a new primitive for creating a unified USDC balance that is chain-abstracted. This allows for near-instant (<500ms) deployment of liquidity across multiple chains, dramatically improving capital efficiency for businesses and solvers.

The day concluded with a clear message: the foundational layers of crypto are maturing, and the focus is shifting decisively towards building robust, user-friendly, and economically sustainable applications that can bridge the gap between the on-chain world and the global economy.