Fintech, financial services and blockchain will be "inseparable" and "indistinguishable," according to Kraken Ventures partner Akshi Federici, laying out a vision of the future during during her talk at the Ethereum Community Conference or EthCC in Paris last week.
Why it matters: All major aspects of financial services could use the blockchain, including capital markets, asset management, payments, retail and institutional banking and insurance, she said.
What's happening: "Roughly eight or nine of the 50 top innovative companies in fintech for two years consistently has been crypto/blockchain-first companies," she said, referencing Forbes rankings.
The big picture: "There is obviously a lot of frustration from a regulatory perspective in the United States, and there's this view that a lot of innovation in crypto, fintech, blockchain etcetera is going to come from— external to the United States," she said, while acknowledging that previous investments from bulge-bracket firms were "encouraging."
Traditional Wall Street firms are invested.
Catch up fast: Recall investment bank Moelis & Co. just threw its hat in the ring, starting a unit to focus on blockchain deals in spite of the crypto winter.
Yes, but: The hurdles are many, she said.
What others are saying: Spencer Bogart, general partner at Blockchain Capital LLC, says startups and founders will have to make some sacrifices to stay flexible amid what could be a prolonged market downturn.
Meanwhile, Coinbase Ventures in a blog post last week recapping its second quarter seemed to share Bogart's opinion: "Web3 gaming remained a sector of heavy investment in Q2, with The Block estimating that $2.6B+ was raised. Our activity over the last few quarters only strengthens our conviction."
Our thought bubble: Perhaps the crypto winter will drive more general-fintech-meets-blockchain M&A.
Flashback: The exchange operator Kraken launched its eponymous venture arm in February 2021 led by Brandon Gath, Kirill Gourov and Federici.
Reality check: "This was like a mind-blowing thing for me," she said. "Apparently there is no legal court in any country, globally, that has recognized blockchain as an immutable ledger or proof of ownership."
Between the lines: If proof of ownership of a home was certified on the blockchain, it doesn't hold up in courts.
Editor's note: This story has been corrected to reflect the correct the title for Akshi Federici. She is a partner at Kraken Ventures, not an operating partner.
