Department of XYZ

Our monthly newsletter, The Briefing Memo, is out. Included is an interview with our advisor Andrew Jacobson, Head of Legal (Global) at ETF issuer 21.co and 21Shares. He shares his perspective on the recent ETF approvals in the United States and the evolving global regulatory landscape. As a former regulator, Andrew also shares his advice for regulators involved in the digital asset sector and for founders building blockchain related companies. He’s got some golden insights you won’t want to miss. You can subscribe to receive future editions of the newsletter in your mailbox here: https://lnkd.in/efG9MjJn. And read this month's edition here: https://lnkd.in/edV2G4tN.

With the leaderboard for the Paris Olympics ???? taking shape, I wanted to reshare this piece I wrote on the regulatory olympics underway among countries competing to become home to the next generation of financial services. At time of writing (April) I described Team USA as "boycotting this financial olympiad" but "likely to rejoin the race eventually." Only several months later, we may be on the verge of just such a shift.

etherfuse recently announced a $3M seed funding round to bring emerging market debt on-chain. The round was co-led by White Star Capital and North Island Ventures. We are proud to participate. While analyst reports tend to focus on the operational benefits of tokenized real world assets, such as lower costs and greater speed, they often miss a more significant opportunity: new markets. Tokenization of real world assets is not only about improving the assets themselves, but also about making markets more global and accessible to all -- an opportunity etherfuse was early to spot. etherfuse has already launched five products so far. These include tokenized sovereign debt, “Stablebonds,” issued by Mexico ???? and Brazil ????. They also recently announced the creation of a new Mexican Peso-denominated stablecoin called MXNe. Yield opportunities in DeFi today range from the rock solid safe yields of US Treasuries (the 1 month US Treasury rate is currently around 5.5%) to less sustainable degen yields that sometimes exceed 30.0%. Etherfuse provides a new set opportunities. For example, the current rate for Mexico’s 28-day bond offering sits at 10.89%. Read our blog post to learn more about etherfuse and why we are so excited about this investment opportunity.

Today Mountain Protocol announced their Series A funding round. We were proud to participate. Read on for our thesis on this opportunity. Having achieved clear product market fit we believe stablecoins are well on their way to becoming a core infrastructure for the payment systems of the future. We believe Mountain Protocol is positioned to dominate three areas of critical importance in the stablecoin issuance market: - Regulated: Mountain Protocol has been regulated and supervised by the Bermuda Monetary Authority (BMA) since July 2023, a globally respected regulator that has developed one of the most robust regulatory regimes for digital asset companies. - Yield-Bearing: Mountain Protocol is also unique in that it shares the yield it generates from its reserves with stablecoin (USDM) users. As of writing, USDM holders are receiving 5.00% APY in locations where Mountain Protocol is accessible. - Global Focus: We see some of the most meaningful real-world adoption of stablecoins in markets outside of the United States. This is an enormous business opportunity that Mountain Protocol is particularly prepared to execute on. Check the comments below for our full blog post on why we invested.

Today Mountain Protocol announced their Series A funding round. We were proud to participate. Read on for our thesis on this opportunity. Having achieved clear product market fit we believe stablecoins are well on their way to becoming a core infrastructure for the payment systems of the future. We believe Mountain Protocol is positioned to dominate three areas of critical importance in the stablecoin issuance market: - Regulated: Mountain Protocol has been regulated and supervised by the Bermuda Monetary Authority (BMA) since July 2023, a globally respected regulator that has developed one of the most robust regulatory regimes for digital asset companies. - Yield-Bearing: Mountain Protocol is also unique in that it shares the yield it generates from its reserves with stablecoin (USDM) users. As of writing, USDM holders are receiving 5.00% APY in locations where Mountain Protocol is accessible. - Global Focus: We see some of the most meaningful real-world adoption of stablecoins in markets outside of the United States. This is an enormous business opportunity that Mountain Protocol is particularly prepared to execute on. Check the comments below for our full blog post on why we invested.

Last week we announced our debut venture capital fund for The Department of XYZ. ICYMI you can read Leo Schwartz's feature here: https://lnkd.in/eJ7kA64R. Today I wanted to share more information about how you can follow our progress: ?? Website: https://lnkd.in/eGMA7Tn6 ? Newsletter: https://lnkd.in/eXsx3GS9 (sign up for monthly-ish updates) Also, if you are in Austin for Consensus, please join us for our launch party on May 29: https://lnkd.in/etXK7aRM. I'm fortunate for the many friends and colleagues, new and old, who have invested their capital to make this possible. And I'm grateful for the opportunity to support those founders who are working to build a better financial system. Thank you ??

Former New York State Department of Financial Services crypto regulator Matthew Homer raised $5.1 million for Department of XYZ, a blockchain-focused venture fund with a who's who of backers, including Robert Leshner, Kyle Samani, and Tyler Winklevoss and Cameron Winklevoss. "We’re not going to be your largest check, but what we are going to be is your regulatory friends on speed dial," Homer told me. https://lnkd.in/gFv8XTJV

Yesterday we introduced our newsletter, The Briefing Memo, which features our latest insights and updates. Feel free to check it out below and subscribe if you'd like to receive in the future. https://lnkd.in/e4KnCAcN

We're honored to be featured in Velvet's latest report on venture capital and private markets as an example of "new and emerging boutique VC funds that leverage specialization, focus, and small size to drive superior investment return." https://lnkd.in/gmmND5Ne

Enjoyed attending the recent FinTech Retreat organized by Alex Pelin at the historic Golden Gate Club in San Francisco. It was my first time back to the city in over a year and so exciting to see the energy returning in a major way. Great to catch up with friends and colleagues old and new and can't wait to get back soon. Ashley Ebersole Sheila Warren Justin Friedman Elizabeth Kelly Sara Wardell-Smith Greg Kidd Jack McDonald Alka Gupta Tom Brown Max Liebeskind Ashley Harris Nik Milanovi? Amanda Wick Armen Meyer Snigdha Kumar