Creating synthetic derivatives (like perpetual futures) of traditional assets on-chain is more scalable and efficient than creating direct tokenized copies. This is especially true for assets with high derivative demand, such as emerging market equities.
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Unlike digital assets, perpetual futures are fundamentally incompatible with markets for physical goods like livestock or grain. The model breaks down because a contract that never expires cannot accommodate the essential mechanism of making or taking physical delivery, a core function of these traditional futures markets.
A complete shift of financial assets to blockchain is imminent. This won't happen on transparent chains like Ethereum, but on purpose-built networks like Canton. The key enabler is configurable privacy, a feature that allows financial institutions to transact without broadcasting their proprietary positions to the entire world.
The 24/7 nature of perpetual futures (“perps”) is attractive to traditional markets for assets like the S&P 500. This shift requires 24/7 settlement infrastructure, making stablecoins essential collateral and creating a massive, non-speculative demand driver for them.
Previous attempts at tech futures like DRAM failed because prices only moved in one predictable direction: down. In contrast, the market for GPU compute will experience cycles of high demand and excess supply. This two-way volatility creates genuine hedging needs, making a futures market viable and necessary.
The last decade of crypto focused on moving assets like Bitcoin on-chain. The next, more significant mega-trend will be the migration of entire companies and their real-world revenue streams onto blockchains, involving both crypto-native firms and traditional giants like BlackRock and Stripe.
Crypto ETFs serve as an off-chain layer for investment transactions, separating speculative trading from on-chain utility. This reduces network congestion and allows the base layer protocol to focus on real-world applications, which is a net positive for its long-term health.
The key benefit of tokenizing private credit or real estate is not just efficiency, but fractionalizing large, illiquid assets into smaller, tradable units. This unlocks global capital from family offices and other investors who cannot afford the traditional high minimum investment tickets.
The success of protocols like Hyperliquid proves product-market fit for on-chain derivatives. This attracts new competitors who use zero-fee models and airdrops to steal market share, forcing a race to the bottom on fees until only one dominant player remains and can re-introduce them.
Multicoin's central thesis is that crypto's ultimate purpose is creating "Internet Capital Markets"—the ability to trade any asset, from anywhere, 24/7, via any software. This broad vision of permissionless, programmable finance is seen as the most significant long-term impact of blockchain, destined to supersede more niche consumer applications or "Web3" concepts.
After years of exploring various use cases, crypto's clearest product-market fit is as a new version of the financial system. The success of stablecoins, prediction markets, and decentralized trading platforms demonstrates that financial applications are where crypto currently has the strongest, most undeniable traction.
