Institutions Are Here
Institutions Are Here
The institutions are no longer coming. They're here and yield-hungry.
Zerion is Mission Control for Web3. Manage your portfolio, trade tokens, and display NFTs!
Dear Bankless Nation,
When the third largest bank in France integrated with MakerDAO last October, we saw very early signs of how mainstream banks were coming.
That was six months ago.
Today, the institutions are finally here.
Traditional banks and investors are acknowledging crypto’s innovation and are ready to wet their beaks in the world of Web3.
Consider how one of the largest American banks Goldman Sachs has pivoted.
They went from “Cryptocurrencies is not an asset class” in 2020 to “Exploring the megatrends of cryptocurrencies that are reshaping economies” on their main landing page today.
Being a crypto-skeptic half a year ago was empty talk.
That skepticism today is starting to come with a price tag.
Continued skepticism is going to cost you dearly.
Goldman Sachs isn’t stupid — that’s why they’re changing their course of direction. The Web3 train is here and corporations are jumping on board before it leaves the station.
And you can bet there are many passengers rushing for a ticket.
Here’s a recap of familiar institutional names reported in the media just this past week alone:
Goldman Sachs is the first major U.S. bank to announce its first over-the-counter crypto trade with crypto merchant bank Galaxy Digital.
Qualcomm is launching a $100 million “Snapdragon Metaverse Fund” supporting builders in the metaverse.
Robinhood is offering a new debit card with crypto rewards and investment options.
An Australia “Big Four” bank ANZ is teaming up with blockchain infrastructure firm Fireblocks to create an AUD stablecoin
Top hedge fund Bridgewater Associates, whose founder Ray Dalio holds Bitcoin, is reportedly gearing up to back its first crypto fund
Alumni from Silicon Valley’s largest tech startup accelerator Y Combinator are launching a crypto investment platform, targeted at young women
That only includes what’s been public.
But what’s still under wraps? Who’s coming next? How many more central banks and private entities are planning their pivot into crypto?
This is a classic case of “if you can’t beat em, join em”.
As Bankless covered last week, even the climate of regulatory uncertainty is also starting to stabilize.
Bridging DeFi to TradFi
In the 20th century, traditional bank savings accounts used to function as their name implied.
The 1934 Glass-Steagall Act separated commercial (savings) banking from investment banking. This provided everyday Americans with a reliable way to accrue a slow but steady compounding interest rate on their savings for their retirements while avoiding the risks of investment banking.
But continued government debt accumulation and devaluation of fiat currency made savings accounts irrelevant. People who left their hard-earned monies in their banks are now victims of inflation.
To actually “save”, one then had to pursue active investment strategies into government bonds or the stock index.
DeFi is bringing back the old status quo for the average man.
Just this week, crypto lender Maple Finance surpassed a billion dollars in loans.
Yes, billion with a B.
A billion dollars is the amount of liquidity that big institutions are borrowing from thousands of small lenders through one DeFi protocol alone.
Small lenders are forsaking the measly interest rates that come with depositing their monies in a traditional “savings” account, in favor of better yields through a DeFi-integrated bridge to the TradFi world
📖 Click here to level up on Maple Finance from William Peaster.
While developers are busy building the multichain future within crypto, the bridges connecting TradFi to DeFi are coming up at the same time.
The lines between both worlds are blurring.
The institutions are no longer coming — they’re here.
Here’s what Bankless has lined up next week:
Lyn Alden and Justin Drake debate PoW vs. PoS.
David also shares his PoW vs. PoS argument in the newsletter.
Lucas is publishing an article on the best business this decade.
Until next week,
- Bankless Team
🙏 Sponsor: Ledger Nano S Plus—The perfect hardware wallet to securely enter Web3. 🔐
Weekly Action Recap | March 21st, 2022
🎙️ WEEKLY PODCAST EPISODE
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ACTION RECAP 📚
📘 Undoing Globalization (Premium Version)
TL;DR
Events of the past few years have revealed how interconnected and globalized our global economies are. Localized disruptions have ripple effects across the entire world’s markets to the point of systemic risk. A possible theme for the 20s is dialing back our dependency on globalization.
📘 A beginner's guide to Cosmos
TL;DR
The Cosmos Ecosystem operates under a unique model, supporting a broader ecosystem of interlinked sidechains and appchains. Bankless explores this ecosystem, highlighting important architectural designs, wallets, DEXs, and major projects.
📘 How to ape responsibly
TL;DR
In crypto, you can invest or you can ape - Buying crypto assets with minimal due diligence. Apeing small amounts into the right tokens/NFTs can easily net you 2x returns, but it is a high-risk-high-reward game. This guide takes you through a few considerations on how to ape responsibly to best protect your funds and investments.
📘 Hottest tokens in the Cosmos Ecosystem
TL;DR
Cosmos, like other blockchains, has its own healthy ecosystem of applications - DeFi, privacy, DEXs, smart contracts, etc. Many of these projects have their own tokens, providing exposure to the activity on Cosmos. Ben looks at the 5 hottest projects and their tokens for the prospective investor.
💬 Are you worried about inflation
TL;DR
Inflation is starting to become rampant throughout the globe. Are you worried? Bankless Nation gives their take!
WATCH & LISTEN 🔊
🎙️ Listen The Internet Reset | Alexis Ohanian
📺 Watch Layer Zero | How to be a Web3 VC with Haseeb Qureshi
📺 Watch State of the Nation | Yuga Labs Buys Out CryptoPunks
📺 Watch Alpha Leak | Celestia’s Building the Multi-Chain Universe
🖼️ Watch Overpriced JPEGs | What Tom Bilyeu is Really Building
🖼️ Watch Overpriced JPEGs | NFT Bull Market?!
💊 Watch Green Pill | Building New Civilizations with Jordan Hall
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Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.