Size of the Opportunity
Smartcoins are unlocking a $1.7 trillion digital structured finance market for crypto.
Last updated
Smartcoins are unlocking a $1.7 trillion digital structured finance market for crypto.
Last updated
Out of the worldwide that own cryptocurrencies, only 2.38 million daily unique active wallets connect to blockchain dapps on average. That's 0.42%. Like it or not, blockchain's first billion users will be onboard to crypto before they're onboard onto dapps.
The most popular tokens provide strong yields, but many of them are either hyper-inflationary, outright lie about said yields or are very close to the yield provided by US treasuries with much more risk involved. Yield vault tokens (YVTs) have proven that DeFi-native, structured digital assets that embody crypto strategies within the token itself (e.g., staking collateral to a network and then passing on the token rewards to the end user) are highly sought after. According to CoinGecko, YVTs have a collective market capitalization of and experience an over $204 million 24-hour trading volume. Yet, none of these YVTs are risk-protected or can actively improve yield performance without major changes to their underlying networks or protocols.
The concept of YVTs isn’t new. These tokens simply represent structured digital products simplifying a once complex financial strategy - be it staking - into a simple product anyone can get exposure to and benefit from.
The was valued at approximately USD 1.72 trillion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 12.47%, reaching around USD $3.49 trillion by 2028. This impressive growth is driven by the increasing demand for diversified investment options, such as digital assets. Despite this, there are no mainstream, crypto-native structured products available, even though BTC and ETH ETFs saw multi-billion-dollar net inflows within months of their launch.
A global structured digital asset market cannot thrive without the necessary CEX and DeFi trade execution engines, which are currently absent. , a remarkable 69.1% year-over-year increase.
We know global financial markets are inevitably moving towards digitization. Structured digital assets, enabled by robust CEX and DeFi trade execution engines, are the future, mirroring the essential foundations of today's traditional financial markets but with far greater efficiency.