Venture Trotter Weekly Review: Bringing Real World Assets On-Chain

There has been much fanfare recently over signs that crypto assets are gradually making their way into TradFi financial products (see: Fidelity’s spot ETF filing for Bitcoin, and HSBC allowing Hong Kong Customers to trade Bitcoin and Ethereum futures ETFs). While moves like these may bring a substantial amount of new capital into crypto assets, a separate exciting development that may boost Web3 adoption is the onboarding of Real-World Assets (“RWAs”) on-chain. Related to this, Robert Leshner, founder of Superstate (covered below) tweeted, “The primary limiting factor to DeFi is that crypto-native assets are the only interoperable assets. But eventually, hundreds of trillions of ‘offline’ assets will find their way onto blockchains.” A few crypto projects that are working to onboard non-crypto assets onto DeFi announced capital raises last week.

Superstate, a company that is creating a short-term government bond mutual fund on the Ethereum blockchain (to be extended to more blockchains later), raised a $4 million Seed Round. If the project receives government approval, investments will include “ultra-short duration government securities (meaning that bond prices will have low sensitivity to moves in interest rates).” Although this is not a pure crypto play, as evidenced by the fact that an off-chain Wall Street transfer agent will be the primary recordkeeper for the fund, the company said in their filing that “blockchain-integrated recordkeeping system may provide operational efficiencies and enhance shareholder experience without negatively impacting the quality of the services provided by the Fund’s transfer agent.”

PWN, a peer-to-peer lending protocol, raised $2 million in an equity raise. The company enables the tokenization of asset transfer rights (“ATR”) so the ATR token can serve as collateral in the lending protocol instead of the asset itself. The company lists a number of potential use cases here, and while they reference multiple crypto-native uses, they also include the tokenization of real-world assets  (“RWAs”) such as real estate and collectibles. PWN says that their initial vision is to bring home mortgages to DeFi be enabling borrowers to post their digital assets as collateral. PWN will update this page when there is news about a future governance token.

AlloyX, a company that brings RWAs to lending protocols, raised $2 million in a Pre-Seed Round led by Hack VC. Beginning in Q3’23, the company will enable DAOs and protocols to build a diversified portfolio of private credit and T-bill backed tokens that are backed by vaults of on-chain RWAs. As of this writing, the company integrated into 9 credit protocols and has just under $5 million value locked.

Expect Ruceto to spend significant time on the topic of tokenization of RWAs. Another promising use case for blockchain technology is the Decentralized Physical Infrastructure Network (“DePIN”), which among other things, can enable AI developers to access affordable compute power without investing in prohibitively expensive hardware or access to an expensive Web2 cloud like AWS. Part 1 of our series on DePINs will be released this week, so keep an eye on our website, Twitter page, and Discord. Also, if you are not a current subscriber, you can access this report and the rest of our existing library with a free 7-day trial included in our Founding Members campaign.

VC Investments into Crypto Projects

The full list of the institutional investments that Ruceto tracked last week is below. Links to the target company website, investment announcement, and token info are provided via hyperlinks on the Target Name, $ Raised, and Token columns respectively.

Target Name $ Raised Lead Investors Description Token
Valar Ventures
A European digital asset exchange offering over 50 tokens
DWF Labs
Chinese PoW/PoS hybrid blockchain
DWF Labs
Developer of a "Web3+" platform that bridges Web2 and Web3 to onboard global economic activities on-chain in a compliance-friendly way
Blizzard Fund, Shima Capital, ReadyPlayerDAO and more
Web3 gaming studio
ParaFi Capital, 1kx, Cumberland Ventures, Distributed Global, and more
Creating a short-term government bond mutual fund where holdings are tracked as a token on Ethereum
Sony Network Communications Inc.
Spun out from the Astar foundation, company provides infrastructure and application support for Web3 projects with the end goal of enabling "Web3 for billions"
Collab + Currency, Lattice
A NFT-native call options protocol where 1) users can earn income by selling covered call options on NFTs (speculating that the NFT price will not increase beyond a certain point, or 2) buy call options to benefit from price increases of the NFT while only investing a small amount of ETH upfront
Binance Labs, Comma3 Ventures, SevenX Ventures, HashKey Capital, Big Brain Holdings, Arweave SCP Ventures, Mandala Capital, and more
A "decentralized zero trust datalake" that secures users' data on-chain with end-to-end encryption
Jump Crypto
End-to-end identity verification powered by zero knowledge proofs
Hack VC
Enables protocols, DAOs, and institutional investors to build DeFi investment strategies that include real world assets
Digital Finance Group, IQTEC, and many more
Peer-to-peer lending where any token can be used as collateral

Disclaimer: The content presented is for informational purposes only and does not constitute financial, investment, tax, legal, or professional advice. Nothing contained in this report is a direct or indirect recommendation or suggestion to buy, sell, make, or hold any investment, loan, commodity, security, or token, or to undertake any investment or trading strategy with respect to any investment, loan, commodity, security, token, or any issuer. Ruceto does not guarantee the accuracy, completeness, sequence, or timeliness of any of this content. Please see our Terms of Service for more information.

Scroll to Top