Founder, @WithGrit_In | Building in India, for the world Ex Crypto @Visa, IB and ONYX @jpmorgan, Alum @theicai @icsi_cs @gujuni1949
Bangalore
Joined July 2020
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We're excited to share our experimental solution on Paying Onchain Gas Fees with a Visa Card
At @Visa, we've been exploring ways to simplify blockchain transactions
Imagine paying for gas fees as easily as buying coffee with your card!
But how did we get here?
🧵👇
Mustafa retweeted
'A financial ecosystem is in sight, where blockchain and tokenisation technology stand to play pivotal roles', write Catherine Gu, head of CBDC and tokenised assets, and Mustafa Bedawala, product manager for crypto products at @Visa .
Read full article: omfif.org/dmijournaljuly24/
Mustafa retweeted
We are so thrilled to confirm that the SEC has approved, pursuant to Section 19(b) of the Securities Exchange Act of 1934, our exchange partner CBOE’s proposed rule change to list and trade a @vaneck_us spot #Ethereum ETF on the CBOE! 🥳🚀
TLDR: We expect the improved political backdrop will lead to further victories for digital asset investors & developers, via new laws & in the courts, that draw investment to #Bitcoin, Ethereum and other open-source blockchain software.
We applaud this decision, as we believe the evidence clearly shows that #ETH is a decentralized commodity, not a security. ETH’s status as a commodity has now been recognized in a variety of circumstances, including the CFTC's regulation of ETH futures, public statements by Commission officials, rulings by federal courts, and now, hopefully, this ETF.
The high degree of correlation between ETH spot prices and CME Ethereum futures prices, similar to the correlation seen with Bitcoin, proved that the spot ETH market is tightly linked to the regulated futures market. This tight linkage supports the listing of spot ETH ETFs, as it allows for the market surveillance the SEC requires. Additionally, the presence of liquid, regulated ETH futures trading on the CME and the approval of ETFs tracking those futures demonstrated to all neutral observers that Ethereum meets the same criteria as Bitcoin for an ETF holding the spot asset. The SEC approved the listing of spot Bitcoin ETFs based on these exact criteria, and we have long believed that Ethereum warrants the same treatment.
Any claim that Ethereum's move to proof-of-stake has turned it into a security, or that staking itself is a securities transaction is misguided and harmful to innovation. Proof-of-stake is simply an alternative consensus mechanism to proof-of-work mining - it does not fundamentally alter Ethereum's decentralized nature or transform ETH into a security issued by a central entity. Since the DAO hack in 2016, Ethereum has become highly decentralized, with no centralized issuer or promoter controlling a material supply or percentage of validators. The Ethereum Foundation's ETH holdings have steadily declined to just 0.30% of the circulating supply, and Vitalik Buterin holds around 0.23%. This widespread distribution of ETH contradicts the idea of it being a security issued by a common enterprise.
We have also heard arguments that Ethereum’s transition to proof-of-stake (PoS) was a securities transaction. This misunderstands the decentralized nature of Ethereum’s governance. Ethereum’s transition to PoS was driven by social consensus, involving broad community discussions, transparent development processes, and voting mechanisms within a decentralized network. This contrasts sharply with traditional financial systems, where decisions are made by centralized entities or a small group of registered stakeholders. Changes in Ethereum are proposed through Ethereum Improvement Proposals (EIPs), debated publicly, and adopted only with widespread community support, ensuring no central authority controls the network. This decentralized, community-driven process highlights that Ethereum remains a decentralized commodity, not a security, as its evolution reflects the collective agreement of its diverse global participants.
As the UK Prime Minister on this topic just recently said: “We are pro-open source. Open-source drives innovation. It creates start-ups. It creates communities. There must be a very high bar for any restrictions on open source.”
Many traditional finance market participants may not fully understand that ETH is not just a speculative asset but has extensive real-world utility underpinning a vibrant decentralized application ecosystem. Ethereum supports over 270 million unique user addresses and processes an average of 1.2 million transactions daily. On-chain value settlements exceeded $2.8 trillion over the last year, compared to global remittances of $860B, PayPal volumes of $1.5 trillion, and Visa network volume of $15 trillion. Ethereum boasts a robust developer community, with more than 2,300 monthly active developers contributing to 113,000 distinct Githib repositories. Thanks to the network effects from this decentralized community, Ethereum has become the foundational layer for a vast ecosystem of over 3,000 applications, including financial services, games and collectibles. Its smart contract functionality enables automated lending/borrowing, decentralized exchanges, NFT marketplaces, play-to-earn games, and tokenization of real-world assets. Major companies like Reddit, Ubisoft, Nike, and Visa have launched Ethereum-based projects. Regulating Ethereum NFTs differently from physical collectibles like baseball cards or Rolex watches is often absurd - both represent unique digital/physical scarcity and ownership. A Bored Ape Yacht Club NFT and a rare 1952 Topps Mickey Mantle rookie card can serve similar purposes as status symbols and stores of value. But governance structures like those enabled by Ethereum underpin much of the innovation happening in open-source databases, including real-world asset tokenization. Stifling this utility through misguided regulation would hamper technological progress and drive those talented entrepreneurs overseas.
The situation has been made even more confusing by the inconsistent stances taken by different U.S. regulators. While the SEC has recently declined to clarify ETH’s status, the Commodity Futures Trading Commission (CFTC) allowed Ether futures products to trade as commodities. The Chairman of the CFTC has stated repeatedly under oath that ETH is a commodity. Even the SEC's own guidance has stated that a digital asset may transition away from being a security as it becomes sufficiently decentralized over time, though critical details are lacking. Adding to the contradictions, just last week the U.S. Attorney's Office for the Southern District of New York unveiled an indictment that referred to Ethereum as a "decentralized" blockchain. Needless to say, this regulatory discord has fostered harmful uncertainty and, contrary to the SEC's mandate of capital formation, has inflicted a lot of pain in the market.
That’s why today feels particularly sweet to VanEck, the first traditional ETF issuer to file for both Bitcoin & Ethereum ETFs. It is so encouraging to observe the growing bipartisan support for digital assets in DC, reflecting widespread voter input, & culminating in today's ETF news and this week's congressional repeal of SAB 121, an accounting rule hostile to crypto that was enacted through unorthodox means.
We expect this improved political backdrop will lead to further victories via new laws and in the courts that draw investment to Bitcoin, Ethereum and other open-source blockchain software.
Stay tuned for further updates.
PS - we expect to go FIRST.
#ETH
Mustafa retweeted
1/ After seeing this line chart created by @nic_carter showing stablecoin volume compared to established payment networks, we decided to partner with @AlliumLabs to create the Visa Onchain Analytics Dashboard as a public resource to take a closer look at stablecoin activity.
Jeff Bezos's inaugural shareholder letter truly sets the stage for Amazon's future. It's not just a lesson in smart business strategy; at its core, the letter is a profound manifesto on customer-centricity
What stands out is Bezos's focus on solving real problems for customers, rather than just pushing products
In his first shareholder letter, written in 1997, Bezos stated:
“This is Day 1 for the Internet and, if we execute well, for Amazon. Today, online commerce saves customers money and precious time. Tomorrow, through personalization, online commerce will accelerate the very process of discovery. Amazon uses the Internet to create real value for its customers and, by doing so, hopes to create an enduring franchise, even in established and large markets. Our goal is to move quickly to solidify and extend our current position while we begin to pursue online commerce opportunities in other areas. We see substantial opportunity in the large markets we are targeting. This strategy is not without risk; it requires serious investment and crisp execution against established franchise leaders. It’s all about the long term."
Truly, this is a masterclass in customer focused strategy
media.corporate-ir.net/media…
I was journaling on my #Everest hike, sharing a poem I wrote along with some photos I captured of these giant mountains
1/3
Under Everest, so tall and wide,
Snowy mountains side by side.
They reach up high, touching the sky,
In a land where dreams can fly.
ALT Mt. Pumori (7161m/27,494ft)
2/3
Here, I stand small, in wonder and awe,
In this place of snow and nature's law.
More than a view, it's a feeling so deep,
A secret of Earth that we quietly keep.
This sight, so wide and shining bright,
Makes us think of our world, so full of light.
ALT Ama Dablam is a mountain in the eastern Himalayan range of Koshi Province, Nepal. The main peak is 6,812 metres (22,349 ft), the lower western peak is 6,170 metres (20,243 ft)
ALT Taboche (left)- 6495 meters and Cholatse (right)- 6440 meters
ALT The main peak, Nuptse I at an elevation of 7,861 m (25,791 ft), was first climbed on May 16, 1961, by Dennis Davis and Sherpa Tashi.
![Khumbu Valley - Mount Everest's peak is the highest altitude above mean sea level at 29,029 feet [8,848 meters]](https://pbs.twimg.com/media/GEUSyFkWsAAH4ve.jpg?name=orig)
Everest Dream
Life's full of changes, but one thing's for sure – I'll never be this young again, and right under the roof of the world!
This AI tool is just amazing, especially with its real time voice capabilities
It definitely brings back some memories of simpler times, but with an AI twist. It's fun trying it out!
Just wow!
smarterchild.chat/
Centralised databases act as attractive targets for cybercriminals, filled with critical data that is highly sought after for illicit sale on dark web markets
If we shift to a decentralized data model and distribute the information across users personal devices, there will no longer be a single honeypot to target
Targeting each user separately for their data becomes economically unviable for hackers
business-standard.com/india-…
Tokenized assets on digital ledgers require digital cash for efficient DVP and PVP settlements, especially when these assets are issued regionally
Banks, recognizing the economic upside of issuing tokenized cash, are now more motivated to develop non US centric stablecoins
ft.com/content/cd733a7c-2e74…
"The internet is to the USA what the Americas once were to the UK—a frontier territory, where all the action is" - @balajis
A small number of powerful entities now control the Internet, which was once a vast digital frontier
Similar to this, blockchain has the potential for innovation and change, but there is a chance that it could take the same course and end up under the control of a select few
We're at a pivotal moment, needing to ensure this new tech remains a space of freedom and creativity
#Tokenization is nothing but the next financial product wrapper!
But what if this is just the beginning of a larger product revolution in the finance?
As per Perez’s cycle of technological innovation, crypto will soon be transitioning from frenzy to synergy, integrating more with existing financial software and #RWAs onchain via tokenization
In the 1970s-1980s, Mutual funds came into existence as the first wrapper, followed by index funds
Then, in the 1990s and 2000s, we saw ETFs/ETPs emerge as value innovations, being listed on exchanges with higher tax efficiency and low management fees, and could be traded intra-day
Now, Tokenization emerges as the next wrapper. But does it provide an efficiency gain with savings in cost and time? The answer is yes, as evident from recent stats from FI's
Goldman Sachs Digital Asset Platform (GS DAP) achieved 15 bps in savings for its €100M digital bond issuance, which translates to an extra €150k return for the bond issuer
J.P. Morgan’s Onyx Digital Assets (ODA) is projecting $20M in savings on an expected $1T in tokenized repo volume by the end of 2023
Broadridge’s Distributed Ledger Repo (DLR) is saving sell side clients like Societe Generale $1M per 100k repo transactions
The structured finance servicing platform Intain reports 100 bps in savings by reducing SME loan lifecycle fees from 150 bps to 50 bps through Hyperledger and Avalanche
Vanguard is leveraging R3’s Corda to achieve straight-through processing, saving 100 hrs a week in labor
Liquid Mortgage has reduced Mortgage-Backed Securities (MBS) reporting from 55 days to 30 minutes on the Stellar
Although these efficiency gains are primarily focused on internal savings, we can expect a lot of unlocks in 2024 and beyond, once these use cases become widely active and provide full lifecycle management onchain
Onchain tokenization wrappers is the PMF FI's and crypto
The current system is broken because changing it significantly could pose a serious threat to established structures
Many individuals are trapped in a cycle of living paycheck to paycheck, consuming unhealthy diets, lacking exposure to sunlight, and experiencing insufficient sleep, leading to the highest levels of depression in human history
Crypto, on its own, may not be enough to address this larger issue
Future payments merge crypto with card rails
The Gnosis Card, a self custodial Visa debit card, connects to users onchain accounts, enabling digital asset spending at Visa points and facilitating real economy crypto spending!
Charlie Munger has passed away
Undoubtedly, he was one of the best to ever do it in the world of investing and also in life in general
In 2021, Munger famously described Bitcoin, the world's leading digital asset, as 'rat poison' and compared other cryptocurrencies to a type of 'venereal disease'
However, his wisdom in finance and life remains valuable. Here are a few quotes from Munger:
On Patience in Investing: 'The big money is not in the buying and the selling, but in the waiting.'
On Adaptability: 'The wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time, they don't. It's just that simple.'
On Continuous Learning: 'Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. Systematically you get ahead, but not necessarily in fast spurts... At the end of the day, if you live long enough, most people get what they deserve.'
On the Importance of Learning: 'Those who keep learning will keep rising in life.'"
RIP!
Why are banks stepping back from private blockchains, despite their initial enthusiasm? The answer lies in their costly nature (negative ROI), which has led many banks to abandon such initiatives
So what's the point?
The goal of blockchain tokenization is to tackle a significant financial burden: reconciliation costs, which amount to a staggering 15-20B $ annually for banks
But there's a catch: private permissioned blockchains fall short in scenarios with multiple intermediaries, each operating its own version
Enter Project Guardian. Its participants are shifting gears, adopting a multichain approach. Yet, the ultimate aim reaches beyond: direct interaction with public blockchains
For this to be successful, the blockchain must excel in 3'S : speed, security and scalability. Achieving these benchmarks would lead to a great outcome for banks - a shared, trustworthy and privacy-preserving database, honing in on the core issue of slashing reconciliation costs
Beautiful marketing by @stripe!
Displaying live statistics of the platform is fascinating to see in Web 2, likely inspired by the Web 3 Blockchain Explorer
Fun fact: the live total transaction volume on the dashboard exceeds the GDPs of more than 30 countries
bfcm.stripe.dev/
Stripe, live: bfcm.stripe.dev.
