Crypto, crypto, crypto. As

cryptocurrency becomes more popular,

we're starting to see signs that it

could become part of our financial

future. US dollars are the greatest

product in human history. But amazingly,

most people around the world who want

dollars cannot get them because the

legacy financial rails simply prevent

them from doing so. You want to have the

world's most realtime global financial

market where everyone is synchronizing

using the same open protocol at the

speed of light. Ladies and gentlemen,

please welcome Multicoin Capitals, Kyle

Sani.

Good afternoon everyone. My name is Kyle

Sani. I'm a founder and managing partner

at Multicoin Capital. I'm incredibly

excited to be here with y'all at the

Allen Summit today. Today I'm going to

be talking a little bit about internet

and capital markets. But before we get

to the future of capital markets, I

think a little history lesson is in

order. Before we dive in, do have some

small disclosures. You can read all this

in about 4 seconds. Um, please do note

that nothing in this presentation should

be considered financial advice. All

right, let's jump in. The roots of our

modern financial system are about 100

years old.

Uh, the stock market as we know it today

was actually born out of crisis. In

1929, the stock market crash, lost a

third of its value in about a week, and

over the next three years proceeded to

lose about 90% of its value.

At the time, there was no SEC, there

were no disclosures, there were no

standardized audits.

In response, Congress passed three major

pieces of legislation. The first is the

Securities Act of 33

and that uh required disclosures for

companies that issue securities.

The second was the Exchange Act of 34,

which created the SEC. And the third was

the investment company act of 1940 which

created regulations for uh regulating

public mutual funds. The government's

goal in these regulations was simple.

They needed to create trust, protect

investors, and most importantly restore

confidence in our capital markets.

Those three laws today still stand as

the foundation that our modern capital

markets are built on top of. In the 90

years since, we've added a rule after

rule, system after system. Typically,

that's been predicated on uh these

financial intermediaries whose job it is

is to uh they're deputized to process

these regulatory functions. We've added

layers of complexity, layers of rent

seeeking. And interestingly, most of

these rules have come not from Congress,

but from the administrative state.

Today's markets are both held together

by these intermediaries and made more

inefficient by them.

Investors have to go through exchanges.

Exchanges go through clearing houses.

Clearing houses go through custodians.

On and on. Each of these players takes a

cut. They add a fee. They add a delay.

They create complexity. And they also

create inertia in the status quo so that

it's harder to remove them later. While

the intent of these legal protections

are generally pretty good, the their

evolutionary path over the last h 100red

years has produced in our modern system

of bloat and crust. Markets still close

at 4 p.m. Fees are still high. Access is

still limited. Inefficiency is baked

into the system by design. It still

takes 2 days to settle a stock trade in

2025.

If you asked a group of engineers and

traders to redesign capital markets

infrastructure from first principles in

2025, you wouldn't be recreating all of

these intermediaries. You'd be building

something based on modern software.

You'd build something that's global and

24/7, that's programmable and

permissionless, and that's secured most

importantly by cryptography.

You'd build one global ledger that can

support internet scale capital markets.

Until recently, these global ledgers, or

as we like to call them, blockchains

couldn't actually scale to support

internet capital markets. No one in this

room is going to wait two minutes to

send the transaction and pay $20 in gas

fees on Ethereum. But we blockchains

have gotten a lot better, cheaper, and

faster. And modern blockchains like

Salana can actually process now more

than a billion transactions in a day at

an average cost of less than a penny per

transaction. The tech is finally ready.

The tech alone though is not enough. We

need a regulatory alignment as well to

get there. And in 2025, we're getting

it. President Trump kicked off the year

by signing a series of executive orders

uh aimed to make America the crypto

capital of the world.

We also owe a huge shout out to our

favorite bestie David Saxs in his role

as cryptos are for helping get these

executive orders through. Thank you.

Yeah, David, thank you

for working with the president on

getting these EOS through and working

with the administration and Congress. In

July, Congress passed the Genius Act,

which created a foundation on top a

framework for stable coins to

proliferate all over the world on

permissionless crypto rails. The Genius

Act is not only going to have

implications for how capital markets

work around the world, but global

geopolitics as the US dollar permeates

every corner of the world. And in the

next few months, we expect Congress is

going to pass the Clarity Act, which is

going to answer a number of open

questions about how crypto market

structure should be regulated.

But interestingly, the most

consequential stuff, consequential

actions are going to be coming uh from

the SEC itself. In a speech that he gave

about six weeks ago, SEC Chair Paul

Atkins outlined his plans for the future

of all of the employees at the SEC. In

that speech, he said, quote, I have

directed the commission staff to update

antiquated agency rules and regulations

to unleash the potential of onchain

software systems in our securities

markets. He is preparing the SEC for

what he calls, quote, the digital

finance revolution. It just does not get

any more clear than this. US securities

markets are coming on chain.

In that same speech, Chair Atkins also

outlined his vision for what he calls

regulation super super app. And this

creates a framework for uh a regulatory

framework to allow three distinct kinds

of assets to all trade on one user

interface despite different underlying

backends. Those three asset types

include non-security crypto assets,

tokenized securities, and tra and

traditional securities. And while these

assets all have different backends,

users should not have to care. You

should be able to trade any of these

things all from the same front end.

Under this framework, these regulated

financial super super apps are going to

be able to offer these services and many

others things like staking, lending,

trading, or just general access to DeFi,

all from these regulated super app

platforms. And they're going to be able

to do so without getting 50 state

licenses or even going through multiple

federal licenses.

The makings of these super apps already

exist today. They look like Robin Hood,

Coinbase, Sofi, and many others.

Soon, you're going to be able to access

cryptonnative

protocols such as GTO, Drift, Commamino,

and a lot of others directly from these

regulated financial super apps.

In this reggg super app vision, the

worlds of regulated financial services

and permissionless crypto protocols are

converging and this is going to open up

access to capital markets for people all

over the world and it's going to result

in an absolute boom in onchain defi

activity. Taken together, we are at a

critical inflection point. For the first

time in a 100red years, the technology

and the regulatory frameworks have come

in into alignment and that's created an

opportunity for innovation and

ultimately for rebirth of our capital

market structure.

This combination is creating the

substrate on top of which we can finally

build internet capital markets. At the

highest level, internet capital markets

should just be thought of as one global

market. A market in which anyone

anywhere with just a phone and an

internet connection can trade any asset

from any software modality. It's

actually a beautifully simple concept.

Blockchains are going to be the

infrastructure that powers all of the

issuance, access, trading of those

assets.

With internet capital markets, finance

becomes an internet native primitive for

the first time ever. All right, with all

this context, let's now look at some

pretty fun examples on how we think

internet capital markets are going to

come to life. Reading the journal and

think the Fed's going to cut interest

rates. Well, with internet capital

markets, you're going to be able to bet

on interest rates on using something

like Kashi without ever even leaving the

journal.

As this kind of a behavior proliferates,

we expect that the nature of media

itself is going to change because a lot

of media is now going to be derived from

the prediction markets. The kind of

analogy to understand would be if you

look at most financial media today, it's

de facto about a stock price or an

interest rate. We think that prediction

markets are going to just change how

media works for all kinds of subject

matter. Is the next pass going to be

completed? Is Curry going to drain a

three? Is Bryson going to drive the

green on Whole 16? Internet capital

markets are coming to the TV, too.

Twitter actually attempted the second

screen experience about 10 years ago uh

by embedding a social feed right next to

the main video content. But it turns out

that was kind of the wrong instantiation

of the second screen experience. The

right instantiation of it is not social

content, it's financial. By betting on a

game, it makes it way more entertaining

and engaging. And putting finance as

that second screen experience alongside

the sports is going to drive all new

engagement in sports TV.

Thank you. I haven't done the work, but

I hope others do. One dirty secret is we

all know that everyone likes to bring

their phone to the throne

and uh soon you're going to be able to

swipe to bet while you're taking care of

business.

My point in sharing this is that

internet capital markets uh are going to

be embedded in software everywhere and

you're going to have all new kinds of

ways to trade. It might look like swipe

to trade as shown here. Could be type to

trade, could be tap to trade. People are

going to play with all kinds of fun new

ways to trade.

Speaking of text to trade,

I think in the pretty near future, our

favorite besties are going to be trading

directly in their group chat. In this

case, Jason's buying from Robin Hood,

obviously. Uh, and this is all powered

by Superstate uh, equities on Drift.

Millions of people actually already

trade uh, crypto assets using Telegram

bots that are not too dissimilar from

this illustrative example I'm showing

here on the screen, but right now that's

mostly contained just in crypto circles.

We expect that this kind of experience

is going to make its way for trading all

kinds of assets and prediction markets.

We think in sports betting in

particular, this is going to be super

pervasive. Being able to chat with your

friends and make bets on sports in a

group chat is going to go viral.

Speaking of trading with friends, you

know, Jim Kramer really was

entertainment finance 1.0.

But as we think about what Entertainment

Finance 2.0 looks like, we think it

looks a lot more like Roaring Kitty or

Dave Portoi.

There are today tens of thousands of

streamers all over the world streaming

content and trading with their fans and

their audience members. And this is

happening every day on Salana. With

Internet Capital Markets, you're going

to be able to have groups of people,

anyone, anywhere, all trade the same

asset together, all from one live

stream. This is going to be one of the

new frontiers in social finance. And

lastly, of course, we cannot forget

podcasts.

Soon you're going to be able to buy

Tumat's newest spack, maybe some Uber

from Jason, maybe buy some Bitcoin or

some Salana, or make a bet on a

prediction market, all while you're

watching your favorite besties.

Internet capital markets are going to

have a profound effect on how we view

and think about and understand markets

as they become embedded into media.

Markets are no longer just going to

exist in some silo in London or Wall

Street.

Markets are going to become the media

and the media is going to become the

channel. Just as software has eaten the

world over the last 20 years, internet

capital markets are going to absorb

every function of capital formation,

trading, settlement, and risk. The

legacy system is not going to adapt.

It's going to be consumed.

And this shift is not going to happen

alone. It's happening in parallel with

AI, one of the most transformative

technologies of our lifetimes. If AI is

rewriting how companies are built, then

internet capital markets are rewriting

how companies are going to be financed,

traded, and owned.

It's an incredibly exciting time to be

an investor and a builder in the space.

This is truly a generational opportunity

um that only presents itself when the

conditions are just right. We finally

have the alignment on both the

technology side and the regulatory side

to get there. When we look back in 20

years, the year 2025 is going to be

remembered as the year that the dam

broke. It's going to be akin to how the

Telecommunications Act of 1996 unleashed

the power of the internet.

Everyone here, all of the builders and

entrepreneurs in the room and all the

investors here along with everyone who's

watching at home online has a chance not

just to witness this shift, but to be an

active participant in it because

internet capital markets are open to

everybody. Thank you.

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