Blockwall - April 2025 - What happened in Web3?

Dear Founders, Investors, and Friends,

In April – and the first weeks of May – the market rebounded strongly.

The S&P 500 recovered by 20%, BTC climbed 40%, and altcoins like SOL surged as much as 80% from their lows.

This was largely due to increased clarity around the ongoing trade war, particularly the 90-day suspension of mutual tariffs agreed upon by the U.S. and China.

Meanwhile, crypto M&A is heating up, with billion-dollar deals and high-profile acquisition offers continuing to make headlines.

So without further ado, here’s a look at what shaped the past month.

DTCC Dives Into Tokenization

The Depository Trust & Clearing Corporation (DTCC) – the financial infrastructure giant responsible for clearing over $3 quadrillion in annual transactions and servicing roughly 90% of the U.S. securities market – announced the launch of its new blockchain-based platform for tokenized collateral management.

The initiative is built on DTCC’s AppChain, a private instance of Ethereum, specifically tailored to meet institutional demands for compliance and control. While the platform is currently permissioned, the long-term vision includes interoperability with public chains, opening the door for broader asset mobility across ecosystems.

Now, why are they doing this? Because tokenization allows them to mobilize collateral in seconds, instead of waiting an entire trading day for settlement. Whether it’s treasuries, equities, or other assets, institutions can now put them to work almost instantly.

That’s a big deal. It frees up capital that’s otherwise stuck as an expensive buffer, improves liquidity, and adds resilience to the system – especially in times of stress, when moving collateral quickly can make all the difference.

Looking ahead, as the platform begins to interact with permissionless networks, DTCC is well-positioned to become a key gateway between traditional capital markets and the emerging “onchain economy”. But the DTCC isn’t the only one who would love to fullfill that role.

Securitize and Ethena Publish Details on “Converge” Network

One month after announcing their partnership, Ethena and Securitize have revealed the technical foundation of their new blockchain initiative: Converge. Together, they want to combine tokenized real-world assets and DeFi innovation – on a single, purpose-built chain that meets the demands of institutional players.

At its core, Converge is permissionless. Anyone can deploy smart contracts, transfer assets, or bring new tokens onto the chain.

But – and this is where things get interesting – individual applications and issuers can define their own access rules. That means a firm like BlackRock could gate access to its tokenized funds. The result is a flexible architecture that combines DeFi’s composability with TradFi-grade control mechanisms.

From a technical standpoint, Converge runs as a Layer-2 on Ethereum. It’s designed for performance, targeting 100-millisecond block times and a throughput of 30,000 transactions per second.

Security is handled by a new validator set, backed by staked ENA tokens. This group acts as a kind of governance and emergency response council, with the authority to pause the chain in case of critical bugs, exploits, or systemic threats.

Importantly, there will be no new token. Transaction fees will be paid in USDe and USDtb, the stablecoin products issued by Ethena. The mainnet launch is planned for later this quarter and launch partners already include major DeFi protocols like Aave, Pendle, and Morpho.

Launching a purpose-built blockchain used to be a multi-year undertaking. Today, thanks to modular infrastructure, teams can spin up specialized rollups in a matter of months.

This shift is a huge unlock. Faster time to market. Lower infrastructure costs. And far greater room to tailor the stack to specific use cases or compliance needs. That’s exactly what Converge represents. And if it works, it might just become a blueprint for the next wave of institutional DeFi.

Crypto’s M&A Frenzy Continues

In another headline, Securitize acquired the U.S. fund administrator MG Stover. The terms of the deal remain undisclosed, but the message is clear: Securitize is doubling down on becoming the infrastructure backbone for tokenized assets.

Founded in 2007, MG Stover is one of the leading fund administrators for digital assets, serving a broad client base that includes names like Polychain Capital. Its core business is handling the operational heavy lifting for investment funds like NAV calculations, investor reporting, compliance, and KYC/AML processes – across hedge funds, private equity, venture capital, and digital assets.

Now, its infrastructure and operational expertise will be folded into Securitize Fund Services (SFS), the fund administration arm of Securitize – which adds both depth and distribution to Securitize’s existing stack.

It’s a natural next step. Securitize has already tokenized over $3.3 billion in assets, including funds from BlackRock (BUIDL), Hamilton Lane, and Apollo Global. With MG Stover onboard, Securitize gains not only regulatory know-how and back-office infrastructure, but also direct access to hundreds of fund managers.

The strategy is becoming clear: unify issuance, trading, and administration under one roof – and soon, on its own blockchain.

Ripple’s War Chest Seeks Deployment

Securitize isn’t the only company who wants to establish itself as a “one stop shop”. Ripple wants to do the same, only in their case, for digital assets services.

In a major move, Ripple has announced its acquisition of prime broker Hidden Road, marking the second-largest acquisition in crypto history – just behind Kraken’s recent takeover of futures platform NinjaTrader. The $1.25 billion deal is expected to close in Q3.

Hidden Road acts as a one-stop-shop for institutional market access, providing over 300 clients – including banks, hedge funds, and trading firms – with prime brokerage services such as trade financing, clearing, settlement, and custody across FX and digital assets.

In essence, prime brokerages allow institutions to access credit intermediation, risk management, and trading services across multiple service providers and banks – all through a single counterparty.

According to Ripple, its recently launched stablecoin RLUSD will be integrated into Hidden Road’s infrastructure as eligible collateral. Additionally, a portion of Hidden Road’s post-trade workflows – like clearing and settlement – will migrate to the XRP Ledger. For context: Hidden Road processes over $3 trillion in annual volume.

For Ripple, the acquisition is all about distribution. Hidden Road gives Ripple direct access to hundreds of institutional relationships. It’s a move to consolidate and accelerate growth across its product verticals: infrastructure (XRP Ledger), stablecoin (RLUSD), and custody (Metaco).

And if you wondered how Ripple financed a deal of that size: By the end of 2024, the company controlled around 42% of the total XRP supply, currently valued at around $80 billion. Roughly $8 billion of that is liquid, with the rest unlocking gradually over the next 38 months.

By the way: Hidden Road wasn’t the only company on Ripple’s radar. According to Bloomberg, Ripple even made an offer to acquire the stablecoin issuer Circle, for $4 to $5 billion. Reportedly, the latter declined.

Circle Announces “Circle Payment Network”

Speaking about Circle: This month, the company introduced its new Circle Payments Network (CPN) – a stablecoin-based infrastructure designed to streamline cross-border payments for banks, fintechs, and payment service providers.

Instead of routing payments through multiple intermediaries – like the case for today’s payment infrastructure – CPN enables direct settlement in stablecoins (like USDC) between participating financial institutions, via a standardized API and smart contracts.

The ambition? To replace legacy rails like SWIFT and the global web of correspondent banks with something faster, cheaper, and – above all – programmable.

For example, CPN could automate payments in ways today’s rails simply can’t – like releasing funds the moment goods are scanned at a warehouse.

To get this off the ground, Circle is working with major global banks like Deutsche Bank, Santander, Société Générale, and Standard Chartered.

For Circle, CPN might matter more than many think. Why? Because its core business is under pressure. As a stablecoin issuer, Circle relies almost entirely on interest income from reserves – revenue that’s shrinking as rates fall, with a large share flowing directly to distribution partners like Coinbase.

And by launching CPN, Circle wants to change this and target a new revenue stream: Network fees.

Portfolio Update

Last month, one of our portfolio companies celebrated a significant milestone: Spiko has secured Bpifrance as a direct subscriber to its tokenized Euro Money Market Fund, meaning the institution will invest part of its balance sheet into a product fully backed by French Treasury Bills.

It’s a powerful signal – one of confidence in the technology and institutional trust.

Spiko is already delivering at scale:

• Over €250 million in assets under management
• 6% share of the tokenized public securities market, making them a top 7 issuer globally

All while being live for just one year.

Now, this new partnership could unlock the next leg of growth. Bpifrance has tens of billions of euros on its balance sheet. Even a modest reallocation could massively boost Spiko’s market share.

More importantly, it sets a precedent for other institutions across Europe to follow suit. Because if a state-backed investor trusts a crypto-native product to manage public debt instruments, others will take note.

We don’t want to sound like a broken record, but this is exactly the kind of institutional support that makes France one of the most attractive places for crypto founders – not just in Europe, but globally.

And we hope Germany and other European countries will follow suit to help flourish our Web3 and crypto startup ecosystem.

We’re incredibly proud to back the team and are even more excited about what’s next.

Blockwall at Paris Blockchain Week

In early April, we attended this year’s Paris Blockchain Week, once again as an official sponsor. As part of our involvement, we supported the organizers in screening over 500 startups for the event’s Startup Challenge. This time, our GP Dominic also invited a select group of family offices to experience the conference first-hand. For more impressions from the week – and insights from his conversations with the family offices – take a look at his LinkedIn posts here and here.

Key Events of the Last Few Weeks

1. BNY Mellon to publish fund data onchain. With its new product “Digital Asset Data Insights,” the bank plans to publish selected offchain data on public blockchains. First up: fund accounting data for BlackRock’s BUIDL, where BNY Mellon serves as custodian. (Source: BNY)
2. Pakistan eyes Bitcoin mining and AI infrastructure. According to a government document, Pakistan plans to use surplus electricity to power both Bitcoin mining and AI data centers. The proposal comes from the country’s “Crypto Council,” whose newest member is Binance founder CZ. (Source: Reuters)
3. Russia to launch state-backed crypto exchange. The Russian central bank is developing a crypto trading platform in partnership with the finance ministry. The exchange will target “qualified investors”, like those holding over $1 million in securities. (Source: Interfax)
4. Helium partners with AT&T. The U.S. telecom giant will begin using Helium’s decentralized mobile network, giving its customers access to the DePIN protocol’s wireless infrastructure. (Source: X)
5. France and Italy push for DLT pilot reform. Financial regulators from both countries have proposed a more flexible and simplified version of the EU’s DLT Pilot Regime, aiming to accelerate tokenization and reduce barriers to blockchain innovation in capital markets. (Source: Press release)
6. Mastercard adds full-range support for stablecoin payments. Through a partnership with Nuvei, one of the world’s largest acquirers, merchants can now accept stablecoins like USDC via Mastercard’s network, even when customers pay in fiat. (Source: Mastercard)
7. Arizona governor vetoes Bitcoin reserve bill. The state’s House of Representatives had approved a proposal to allocate 10% of public funds into digital assets like BTC, but the bill was blocked by Arizona’s governor. (Source: X)
8. Tether and SoftBank launch ‘Twenty One Capital’. The new investment vehicle will use capital markets instruments like convertible bonds and equity sales to raise funds for purchasing Bitcoin. (Source: Press release)
9. Coinbase unveils Bitcoin Yield Fund. Targeting institutional investors outside the U.S., the Coinbase Bitcoin Yield Fund (CBYF) aims to deliver annual returns between 4% and 8%, backed by Bitcoin exposure. (Source: Coinbase)

What We’ve Been Reading

1. Galaxy Digital: The State of Crypto Lending. This report offers a comprehensive overview of the crypto lending landscape, detailing the evolution of CeFi and DeFi lending post-2022, current market dynamics, risk models, and the role of crypto-backed credit in shaping institutional finance going forward.
2. Citi: Blockchain and the Digital Dollar. This in-depth report from Citi explores the transformative potential of blockchain-based digital dollars, analyzing use cases across wholesale and retail finance, the regulatory outlook, and how programmable money could reshape monetary policy and financial infrastructure.

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