Goldman Sachs Digital Asset Conference Insights: TON, ETF, and Asset Tokenization Remain High-Frequency Terms

Author: Tom Wan

Compiled by: Shenchao TechFlow

The most frequently heard terms at the Goldman Sachs Digital Assets Conference were

• TON

• Tokenization

• ETF

• UX (User Experience)

• Regulation

Here are some interesting summaries from the panel discussions.

1. The Next Wave of Digital Asset Investment

Participants:

• @dan_pantera from Pantera Capital

• @richwgalvin from Digital Asset Capital Management

• Joseph Naggar from Republic Digital

• @rviewfromhk from Animoca

1.1 How to Recommend Cryptocurrency to Traditional Financial Investors:

• Similar to recommending other asset classes, but do not overly emphasize the philosophical aspects;

• The main challenge currently is high volatility;

• Can be compared to the maturation process of emerging markets and the similarities with the internet boom;

1.2 Has Venture Capital Returned to Its Peak?

• The pace of investment is similar to before, and the price drop presents a great opportunity for investment at reasonable valuations;

• Liquidity investments are also a good area;

1.3 Why Are Altcoins Underperforming?

• Many new Token Generation Events (TGEs) have led to some capital rotation;

• Regulation will determine winners and losers in the long run;

• The valuation of the entire crypto market is similar to the S&P 500, with top assets occupying most of the market share;

1.4 Predictions and Exciting Areas Mentioned by Each Speaker: @ton_blockchain

Dan:

• The combination of blockchain and AI in traceability and decentralized AI models/computing;

• TON has a large existing user base;

Richard: AI and Consumer-Facing Interfaces

• We now have enough block space, and we need to attract more users by simplifying complexity, with Telegram being a great example;

Joseph: TON/Near/Bittensor/Bitcoin Smart Contracts;

Robby: ZKP for decentralized ID and powerful distribution blockchains like TON;

2. Technologies Supporting Digital Assets

Participants:

• @konstantin11 from @BlockdaemonHQ

• @YuvalRooz from Digital Asset Holdings

• Aaron Schnarch from Anchorage

• @TimRiceCM from Coinmetrics

2.1 Where Are the Capabilities of Blockchain Demonstrated in the Real World?

• Tokenization: Reducing costs, increasing efficiency, and achieving 24/7 markets, such as @Securitize's BUIDL;

• Bitcoin ETF;

2.2 What Are the Main Challenges in the Industry Currently?

• Compliance: Staking remains complex in terms of reporting and tax calculations;

• Complexity: Staking may still be too complex for investors;

• User Experience: ETFs are a good example of simplifying investor operations by abstracting the custody part;

2.3 Is Staking the Next Trend for Institutional Adoption?

• Institutions will begin to participate in decentralized networks, such as running nodes or validating networks; however, regulations are still not fully clear;

• Staking remains complex, and chain abstraction is key;

3. After ETFs: Where Is the Future of Cryptocurrency?

Participants:

• @Gautam_iit from Brevan Howard Digital

• @0xUNaeem from Coinbase

• @Chris_Zuehlke from Cumberland

• @HHorsley from Bitwise

3.1 Will There Be Other Cryptocurrency ETFs Besides BTC and ETH?

• Solana and TON blockchains offer products different from BTC and ETH, so there will be ETFs beyond just BTC and ETH in the future;

• Index funds may become the long-term solution for the next wave of cryptocurrency ETFs;

3.2 In Retrospect, Were There Any Surprises with the BTC ETF? What Are the Ripple Effects?

• Coinbase's survey predicted that within a year of launch, the assets under management for the U.S. BTC ETF would reach $10 billion, but the actual results exceeded expectations;

• The adoption rate by investors and advisors was surprisingly fast compared to GLD;

• The influx of funds from retail and high-net-worth investors was unexpected, as institutions have not fully entered yet;

• The next wave may be the entry of pension funds and endowment funds;

• Ripple effects may include tokenization;

3.3 How Did Market Dynamics Change After the ETF Launch?

• Liquidity is deeper during U.S. hours;

• Trading volume during U.S. hours increased by 3-4 times, accounting for 50% of total trading volume;

• Derivatives trading began to dominate price movements;

3.4 What Other Catalysts Are There for Bitcoin Price Movements Besides ETFs?

• Regulatory changes;

• Interest rate fluctuations;

• Innovations demonstrated by Ordinals/BRC-20 at the base layer;

• BitVM and other Bitcoin scaling solutions;

• Using ETF tools mitigated credit and counterparty risks;

@HHorsley asked how many people in the audience had heard of ordinals, and surprisingly, the proportion exceeded 70%.

3.5 What Stage Are We in This Cycle?

• Technology is ready for a golden age, having reduced transaction costs through L2 and other L1s (like Solana);

• Institutions will adopt some blue-chip DeFi protocols to build their own solutions;

3.6 How Will the U.S. Elections Affect Cryptocurrency?

• Cryptocurrency issues are clearer than before;

• We need a clear regulatory framework;

• A clear regulatory framework can promote innovation and enhance U.S. competitiveness;

3.7 Best and Worst Cases by Year-End:

Best:

• The birth of a super app that can attract millions of users;

• Institutions going on-chain;

Worst:

• Lack of momentum and negative reputation;

• Talent flowing into the AI sector;

4. @ysiu: The Web of Ownership: How a Billion People Will Change Capitalism and Financial Markets Through WEB3

• Photo of Yat at the Goldman Sachs office @Moca_Network

4.1 Cryptocurrency Has Structural Similarities to the Real World but Is More Advanced

• DeFi has now become one of the largest "central banks," with a total value locked (TVL) reaching $100 billion;

• DAOs may become the organizational structure of the future;

4.2 How Cryptocurrency Empowers the Gaming Industry

• NFTs grant users the right to own a part of the internet;

• In-game currency = Token;

• Game skins = NFT;

• Traditionally, most of the funds raised by game studios are spent on advertising on Facebook, Instagram, or TikTok to attract users, but this funding rarely flows back to the gaming industry or users;

• Airdrops are a new user acquisition strategy. Even if players do not like the game, the tokens they sell will remain in the crypto ecosystem;

4.3 Current Challenges Facing Web3 Games

• Many crypto games are still restricted by mainstream platforms (like Apple or Steam), which require disabling NFT features in games;

• Another option is to develop games on the Telegram blockchain, allowing developers to benefit while leveraging Telegram's large user base;

5. Focus on Institutions: What Aspects of Digital Assets Are They Concerned About?

Participants:

• Tony Ashraf from Blackrock

• Geoff Kendrick from Standard Chartered

• Russell Barlow from Abrdn (a global investment company headquartered in Scotland, formerly known as Standard Life Aberdeen)

5.1 Why Are Tokenized Money Market Funds Important for Cryptocurrency?

• Yield-generating assets are a form of high-quality collateral;

• Stablecoins do not generate yield and may have potential counterparty risks;

• More efficient than cash without yield;

5.2 Why Did Blackrock Choose to Tokenize Money Market Funds with @Securitize?

• Created a new distribution channel;

• This is an efficient asset;

• Allows the crypto industry to access risk-free rates on the blockchain;

5.3 What Strategic Investments Has Your Company Made?

Russell from Abrdn:

• Building infrastructure for 24/7 trading;

• Working closely with @hedera to run nodes and participate in governance committees;

Geoff from Standard Chartered:

• Zodia Custody;

Tony from Blackrock:

• Blackrock invests in companies that can drive industry development;

5.4 What Are the Biggest Opportunities? Cryptocurrency, Custody, Staking Management, or Tokenization?

• Cryptocurrency will dominate the market, and tokenization will also have a significant impact, but we need to move beyond the proof of concept (PoC) stage;

• Super apps in the crypto space;

• Staking management will bring unexpected opportunities.