Fintech and DeFi Research Archive — The Fintech Blueprint

Pioneering Crypto ETPs to $3B in assets in 3 years, with 21Shares CEO Hany Rashwan

In this conversation, we chat with Hany Rashwan – the founder of Amun and 21Shares. Hany built the company that put out the first physically backed crypto Exchange Traded Product (ETP). In simpler terms, he created a vehicle for people to buy crypto assets, such as Bitcoin or Ethereum, on the stock market. Alongside Cathie Wood of ARK, 21Shares recently submitted a Bitcoin ETF to the SEC. While he waits for the US to get on board, Hany's products are already offered all over Europe, with more than $3 billion under management.

More specifically, we touch on his early entrepreneurial mindset which lead him to building successful businesses, how currency devaluation in Egypt pushed him to create 21Shares, what an Exchange Traded Product (ETP) is and how it related to Exchange Traded Funds (ETFs), the regulatory landscape for crypto-backed ETPs, and so so much more!

The State of Decentralized network M&A in 2021, with Polygon's $650MM of acquisitions

We look at the state of M&A in decentralized protocols, and the particular challenges and opportunities they present. Our analysis starts with Polygon, which has just spent $400 million on Mir, after committing $250 million to Hermez Network, in order to build out privacy and scalability technology. We then revisit several examples of acquisitions and mergers of various networks and business models, highlighting the strange problems that arise in combining corporations with tokens. We end with a few examples that seem more authentic, highlighting how they echo familiar legal rights, like tag alongs and drag alongs, from corporate law.

Investing in real estate, crypto, and startups using your retirement account, with Rocket Dollar CEO Henry Yoshida

In this conversation, we chat with Henry Yoshida – Co-Founder & Chief Executive Officer, Rocket Dollar. Prior to Rocket Dollar, Yoshida was the co-founder of Honest Dollar, a robo-advisor retirement platform that was acquired by Goldman Sachs, as well as a founder of MY Group LLC, a $2.5-billion assets under management investment firm. Henry shares his industry expertise as a speaker at several industry conferences, as well as having been featured or quoted in the Wall Street Journal, TechCrunch, Bloomberg Businessweek, and Financial Times. Henry has a passion for helping people be the best that they can be and contributes as a member in several financial and technology industry organizations. He graduated from The University of Texas at Austin and has an MBA from Cornell University.

More specifically, we touch on Henry’s career at BoA Merrill Lynch, his role at building a multi-billion dollar RIA business, how he started a digital retirement account platform called Honest Dollar which was sold to Goldman Sach’s neobank Marcus, the inception of Rocket Dollar, we talk IRAs and 401ks and how important these are for the current Gen-Z market, and so so much more!

Origins of Metamask's 20 million Web3 users, with co-founder Dan Finlay

In this conversation, we chat with Daniel Finlay – a former Apple software developer, co-founder and co-lead developer on MetaMask – a non-custodial Ethereum wallet, allowing users to store Ether and other ERC-20 tokens and make transactions. Further. With the growth of DeFi and NFTs over the past year, MetaMask has increased in prominence as an entry point for novice users. So much so that its user base is now over 20 million monthly active users.

More specifically, we touch on how Dan went from teaching kids to code to having an app rejected by the Apple App Store to MetaMask, the philosophy behind e-government, questioning the role and job of software engineers, how crypto wallets compare to neobanks, and so so much more!

paytech, metaverse, crypto, decentralized finance, DAOs, digital investingLex SokolinDecember 3, 2021MetaMask, Apple, Ethereum

Powering the FX behind Africa's trillion-dollar growth, with Aza CEO Elizabeth Rossiello

In this conversation, we chat with Elizabeth Rossiello – the CEO and founder of AZA, an established provider of currency trading solutions which accelerate global access to frontier markets through an innovative infrastructure. Elizabeth founded the company in 2013 in Nairobi, Kenya and has expanded it to 10+ markets across Africa and Europe.

Before founding AZA, Elizabeth was a rating analyst for microfinance institutions across sub-Saharan Africa, consulting for Grameen Foundation, Gates Foundation and the Acumen Fund, as well as working with regulators and policy-makers on legislation for financial innovations. Elizabeth co-chairs the World Economic Forum's Council on Blockchain and holds an M.A. in International Business and Finance from Columbia University.

More specifically, we touch on ratings agencies and the activity of rating intitutions, M-Pesa and how it influenced the thinking towards a crypto-centric future, Africa’s banking landscape and some of the outstanding issues it faces, Bitpesa and how it became Aza, banking infrastructure in Africa, and so so much more!

crypto, paytech, Africa, crowdfunding, digital investingLex SokolinNovember 26, 2021AZA Finance, BitPesa, mPesa, PayPal, Bitcoin

CEO of Yield App, Tim Frost, on integrating DeFi Yield products into a regulated Fintech company

In this conversation, we chat with Tim Frost, CEO and Co-Founder of Yield App, a fintech app making DeFi accessible to everyone. Prior to founding Yield, Tim helped build 2 previous digital banks, Wirex and EQIBank. Tim has also helped accelerate early-stage blockchain startups QTUM, NEO, Paxful, Polymath, and many others.

More specifically, we touch on all things crypto banking and debit cards, crypto onramps, juristictions and regulation, defi banking, yield generation mechanisms, and so much more!

crypto, decentralized finance, digital investing, digital lendingLex SokolinOctober 8, 2021Yield App, Coinbase, Xapo, Wirex, EQIBank, SEC

Robinhood's order flow disrupting equities and crypto market structure, with Paul Rowady of Alphacution

In this conversation, we chat with Paul Rowady is the Founder and Director of Research for Alphacution Research Conservatory and a 30-year veteran of proprietary, hedge fund and capital markets research, trading and risk advisory initiatives. Alphacution is a digitally-oriented research and strategic advisory platform focused on modeling and benchmarking the impacts of technology on global financial markets and the businesses of trading, asset management and banking. This data-driven approach allows Alphacution to reverse-engineer the operational dynamics of these market actors to showcase the most vivid and impactful themes among the field of available research providers and platforms.

Is Fintech or DeFi Bigger? And Who eats Whom? Hosted by The Defiant

In this video conversation we feature a roundtable by The Defiant exploring how and if the gap between Fintech and DeFi will be bridged.

DeFi Panelists
Lex Sokolin, head economist at ConsenSys
Santiago Roel Santos, angel investor
Spencer Noon, Investor at Variant
Vance Spencer, co founder at Framework Ventures

Fintech Panelists
Keith Grose, head of Plaid international
Nik Milanović, founder of This Week in Fintech
Simon Taylor, co-founder of 11:FS
Bruno Werneck, Business & Corporate Development at Plaid

Moderator
Camila Russo, Founder of The Defiant

Altruist CEO Jason Wenk on WealthTech, financial planning, advice, and generally improving financial health

In this conversation, we chat with Jason Wenk, who is the Founder & CEO at Altruist. Apart from this Jason is a writer, self-proclaimed math geek, and investment systems developer. He began his career at Morgan Stanley in NYC at age 20, working on investment research and asset management systems development. After this Jason founded FormulaFolios: quantitative, computer-driven investment models based on academic research to help remove emotion from investing. FormulaFolios would later develop into a standalone asset manager and go on to rank as a fastest-growing private company by Inc. magazine 4 years in a row, reaching as high as #10 in 2017.

More specifically, we discuss all things wealth tech, as well as, serving people with financial planning, financial advice, and generally improving their financial health.

What do SPACs and IPOs say about Coinbase, Robinhood, Lemonade, SoFi, and other fintech darlings?

We look in detail at the state of marking recently-private-fintechs to the public market in mid-2021. Multiple industry segments have seen IPOs, direct listings, and SPACs transition fintech darlings into traditional stocks. How is performance doing? Is everything as magnificent and rich as we expected? Have multiples and valuations fallen or held steady? The analysis explores the answers and provides an explanatory framework.

eToro CEO Yoni Assia on the purpose of investing, crypto assets, and building a $10B fintech

In this conversation, we talk all things capital markets and investing with Yoni Assia, the founder and CEO of eToro, one of the fastest-growing and largest global digital investing companies, brokerages, and applications out there.

More specifically, we discuss the eating habits of Warren Buffet, community-driven investment challenging incumbent investing practices, the purposes of investing and trading, of financial health, of investment education, of gamification of investment strategy, of capital markets and GameStop and the connection between capital, memes and fashion, and finally machine learning’s influence of investment behaviour.

The fundamentals of Circle's $4.5B SPAC, Robinhood's IPO, and the $30B of fintech venture capital

Last quarter, fintech funding rose to $30 billion, the highest on record. $14 billion of SPAC capital is waiting to take these companies public. Robinhood and Circle are about to float on the public markets, via SPAC and IPO. In this analysis, we explore the fundamentals of both companies, as well as the unifying thesis that explains their growth.

From ecommerce to a million+ global financial community, with Maximilian Rofagha of Finimize

In this conversation, we talk with Maximilian Rofagha, who serves as the CEO and Founder of Finimize, about how to do personal finance right and how to do it bottoms up for the world.

Additionally, we explore Max’s journey to becoming an entrepreneur, the nuances of the e-commerce business, the building of and drivers behind community and creating business activities around it, the influences of FinTok and crypto assets on financial community, and the drivers of value back into said communities fulfilling the feedback loop.

The $2.2 billion Acorns SPAC and a $50 billion fintech roll-up strategy for public funds

This week, we cover these ideas:

The Acorns SPAC deal, including its valuation and detailed metrics
The growth levers and obstacles for point-solutions as they scale into the millions of users and hundred of millions of revenues
What a $50 billion fund should do to roll this stuff up

It is looking like a pretty good time to go consolidating individual financial product footprints. Leaving aside whether consolidated companies are good or bad for some particular reason, the simple observation is that there are just far too many point-solution brands out there. Too many to be left alone to operate. And now a number of them are going to be public, which means that a number of them are going to be up for sale.

IPO / SPAC, digital investing, roboadvisor, asset managementLex SokolinJune 1, 2021Acorns

What TikTok's GenZ financial influencers mean for RIAs, wealthtech, and financial advice

This week, we look at:

TikTok has become a platform with billions of views for investing and stock recommendations to teens. This emotional and persuasive labor can be traced from Jim Cramer to Roaring Kitty.
78% of Millennials (vs. 31% of Boomers) plan to use more digital tools in wealth management and 81% of them think that technology has made investing more efficient (vs. 61% Boomers)
This generational change has implications for investing technology, digital wallets, and the role of people in the financial advice process

Understanding the Fintech user growth behind the $10.4 billion eToro SPAC and coming Chime IPO vs. the melting Megabanks

This week, we look at:

Chime, eToro, and Wise targeting the public markets through IPO and SPACs, and their operating performance
The overall growth in fintech mobile apps, their install rates and market penetration (from 2.5 to 3.5 per person), and whether that growth is sustainable
The implications for incumbents from this competition, and in particular the impact on money in motion vs. money at rest
Broader financial product penetration and an anchoring in how the technology industry was able to get more attention that we had to give

How M1 Finance's $3B AUM super-app is outcompeting Wealthfront, Robinhood, and Schwab, with CEO Brian Barnes

In this conversation, we talk with Brian Barnes of M1 Finance, about finance “super apps”, the cost-efficiencies of robo-advisors, fractionalized share trading, and tackling the titans of the Wealth Management industry. We also discuss the nuts and bolts of the financial infrastructure making this possible.

M1 Finance bundles together roboadvisory, neobanking and lending into a single “super app”, allowing for combined pricing power (i.e., charging nothing on asset allocation). The firm currently has $3 billion in AUM, a growth of 50% in the past four months and tripling their total in just over a year. Notably, the company has its own broker/dealer and offers fractional shares, and partners with Lincoln Savings bank on the deposit accounts. That makes for a compelling business model from securities lending, interchange, and order flow.

The post-FinTech New American Finance, and Robinhood’s $3.4B support of an 8MM-strong Reddit army that cost Wall Street $7B, with Will Beeson of Bella

In this conversation, we talk with Will Beeson of Bella and Rebank, about how the Internet/Reddit/Gamestop broke out financial market structure, the social contract, and what the new American finance structure will look like.

More specifically, we give some thought to which FinTech and Crypto companies win or lose from the GameStop adventure, the actual market structure issues that led to the suspension of Robinhood’s trading, and what’s next for the mobile broker, and finally, the social meaning of the war against hedge funds by Reddit’s r/wallstreetbets. Check out our conversation on these exciting new developments.

digital investing, narrative zeitgeist, exchanges / cap mktsLex SokolinFebruary 5, 2021Robinhood, Reddit, Gamestop

How the Internet/Reddit/GameStop broke our financial market structure, the social contract, and what comes next

Despite its best efforts to the contrary, Robinhood did end up stealing from the rich and giving to the poor.

Melvin Capital, the $8 billion hedge fund that didn’t find GameStop funny, lost 53% of its portfolio in January ($7 billion) trying to short against the rallying cries of the Reddit Capitalist Union. Gabe Plotkin also faces the embarrassment of having to get bailed out by your old boss.

Speaking of, New York Mets owner and former name-on-the-door of SAC Capital, known most recently for its insider trading fine of $1.8 billion, Steven A. Cohen, put $2.8 billion of capital into Melvin’s fund.

Ken Griffin, owner of the Citadel hedge fund (an investor in Melvin), and Citadel Securities (a massive market maker and buyer-of-order-flow for Robinhood), is seeing capital losses in the former and Washington cries for scrutiny into market structure in regards to the latter.

Robinhood itself — which for goodness sake is *not Wall Street*, but as *Silicon Valley* as it possibly gets — raised $1 billion immediately to protect itself from class action lawsuits, DTCC capital calls, and a now-rapidly-closing IPO window. That means Yuri Milner of DST Global chipping in yet again.

That’s at least 4 people that have had a very bad, no good day.