Keep pulling the thread on Shayan Sengupta.
Shayan Sengupta predicts that the market sizes of traditional finance and crypto assets will converge faster than most people expect.
Former SEC Chair Paul Atkins has repeatedly stated his belief that U.S. financial markets will move on-chain, with some of his statements suggesting a timeline of under two years.
Multicoin Capital believes the next wave of growth in the crypto industry will be driven by exogenous, real-world assets (RWAs) moving on-chain.
The market capitalization of on-chain Real World Assets (RWAs) has surpassed $30 billion, driven primarily by tokenized treasuries and money market funds.
The daily trading volume for perpetual futures on equities has exceeded $5 billion.
Shayan Sengupta predicts the market for digital commodities like compute will grow significantly over the next 3 to 4 years, driven by increasing resource scarcity from AI.
The speed at which an asset class moves on-chain is determined by the amount of entrenched legacy settlement infrastructure it must overcome.
Asset classes with fragmented, relationship-driven market structures, like private credit, are expected to move on-chain faster than those with centralized infrastructure.
Multicoin Capital's investment thesis for RWAs is that value will accrue to three layers: liquidity venues like Hyperliquid, issuance infrastructure platforms, and composability protocols like Kamino and Jito.
According to Multicoin Capital's thesis, the primary investment opportunity in the RWA trend is in the infrastructure layers rather than owning the tokenized assets themselves.
Traditional finance assets, including equities, commodities, rates, and FX, transact trillions of dollars daily on legacy financial rails that have not been updated in decades.
The first major wave of RWA experimentation began during the ICO era with projects like Polymath, Harbor, and Newfund, but most of these platforms went out of business.