Hybrid finance as an investment thesis
Bitcoin catalysed the convergence between traditional and digital finance. What comes next is a full financial system built on-chain.
Hybrid Finance did not
emerge overnight.
Hybrid Finance did not
emerge overnight.
2009
Birth of Bitcoin
Launched on the fringes of the internet, a cryptographic experiment dismissed by mainstream finance as a niche curiosity.
2013 2017
Early adoption
Driven by cypherpunks, technologists, and early believers. Exchanges, custody services, and the first regulatory debates emerge. Europe launches the first crypto ETPs.
2020 2021
Institutional entry
COVID-era money printing turns Bitcoin into "digital gold." Public companies like MicroStrategy and Tesla buy in. Institutional custody begins to form.
2024
SEC approval of U.S. Bitcoin ETFs
12 issuers, including BlackRock and Fidelity, launch spot Bitcoin ETFs. Within months, inflows reach $144B AUM. ETFs hold 1.3M BTC—marking Bitcoin's entry into global capital markets.
2024
Bitcoin as U.S. reserve asset
The U.S. recognises Bitcoin as a strategic reserve, confirming it as the store of value of the digital age. From fringe asset to macro foundation of Hybrid Finance.
Bitcoin catalysed convergence, demonstrating that blockchain-native assets can earn institutional trust and deliver portfolio utility.
The story doesn't end there. It begins there.
The next chapter belongs to Hybrid Finance, the intersection of three converging forces:
01.
Infrastructure & Settlement
Layers
Infrastructure & Settlement Layers
Before assets can be tokenised, before markets can operate continuously, before capital can move freely—there must be rails capable of carrying real economic weight.
What
Secure, scalable blockchains serving as the backbone of Hybrid Finance, executing and settling digital value globally in a permissionless way.
Why
Infrastructure precedes everything. The networks carrying real economic weight today will define institutional finance tomorrow. Settlement lag is an artifact of legacy infrastructure, not a feature of modern finance. Blockchains don't close for weekends, holidays, or time zones.
How
Support advanced DeFi ecosystems and regulated asset tokenisation. Generate revenue aligned with network activity. Provide open access to global settlement infrastructure.
Key numbers
Blockchains earned ~$6.9B in fees
Ethereum ~$2.5B, the settlement standard with Layer 2s processing 12× its L1 volume
Solana processed $215B in stablecoin transfers, sub-second finality, 220M monthly active addresses
Benefits
Near-instant settlement instead of T+2/T+3 traditional rails
Programmable money that automates settlement across markets
Transparent and verifiable transactions
24/7 global access
02.
Tokenised real-world
asset protocols
Tokenised real-world asset protocols
Tokenisation is the moment Hybrid Finance becomes unavoidable. It is where traditional assets—treasuries, money markets, credit, commodities—are transformed into programmable, on-chain instruments.
What
Protocols bringing traditional assets on-chain, providing transparent, regulated access to institutional-grade financial products via blockchain infrastructure.
Why
Tokenisation is structural, not cyclical. Every treasury, every bond, every real asset that can be digitised will be. The rails are live. The capital is moving. This isn't a pilot—it's a platform shift.
How
Tokenise traditional assets including money markets, treasuries, private credit, and equities. Provide regulated and compliant on-chain infrastructure. Enable programmable assets through smart contracts. Bridge traditional finance with crypto ecosystems.
Key numbers
Tokenised treasuries reached ~$7.45B AuM
BlackRock BUIDL captured 30% market share in nine months (~$2.2B)
Franklin FOBXX: ~$707M
Broader RWA market: $185B
Benefits
24/7 trading and settlement
Global, permissionless access to institutional assets
Fractional ownership and greater liquidity
Composability with DeFi protocols
Reduced intermediary costs
03.
Revenue-generating on-chain applications
Revenue-generating on-chain applications
Hybrid Finance is not complete without applications. User-facing protocols—exchanges, derivatives platforms, lending markets—operate directly on blockchain infrastructure and generate real, recurring revenues.
What
User-facing applications built directly on blockchain infrastructure, operating as profitable businesses that generate real cash flows from protocol activity.
Why
Discipline over hype. Data over narratives. We don't invest in promises. Blockchain fees, stablecoin velocity, protocol revenues, and on-chain activity are measurable, auditable cash flows. If it can't be tracked on-chain, it's not part of our thesis.
How
Generate fees from trading, payments, derivatives, and consumer applications. Implement value-accrual mechanisms such as token burns, buybacks, and staking rewards. Direct protocol revenue to token holders and ecosystem participants. Build defensible moats through network effects and liquidity.
Key numbers
Uniswap generated ~$1.2B in annual fees
Hyperliquid processed +$1B daily volume
TON reached 900M users and a Top-10 market cap
$37T in stablecoin settlements Q1–Q3 2025, surpassing Visa and Mastercard combined
Benefits
Transparent, real-time revenue tracking
Composability that drives network effects
Direct value capture for token holders
Programmatic distributions without intermediaries
Lower operational overhead than traditional financial systems
