Latest news with #decentralizedfinance
Forbes
7 hours ago
- Business
- Forbes
The New Blueprint For Impact Investing DAOs
In 2024, the impact investing market was valued at USD 87 billion; by 2030, it's projected to triple to over USD 253 billion (Grand View Research, 2025). Yet despite this momentum, the way impact capital moves today often mirrors the inefficiencies of traditional finance: high minimums, long decision cycles, opaque governance, and limited community involvement. Too often, the people most affected by these investments have the least say in how they're designed, deployed, or measured. A new wave of decentralized impact‑investment platforms is changing that. Using blockchain and tokenized governance, they enable communities, investors, and stakeholders to co-create and co-govern in real-time, with complete transparency. Decentralized Autonomous Organizations (DAOs) distribute governance tokens not just to investors but to community members, local NGOs, and even small business owners within the project area. Every proposal, regardless of whether it involves allocating funds for equipment, adjusting wage structures, or expanding services, is voted on and executed via smart contracts. Governance Before Capital & Decision‑Making Before Deployment of Decentralized Finance Ever since 2018, the World Economic Forum has acknowledged the potential of blockchain as 'a game-changing technology that can contribute to scaling impact investment by providing trust, transparency, and low transaction costs.' Few segments of finance are expanding this fast, and even fewer are so tightly linked to tackling the world's most urgent social and environmental challenges. One company taking that idea further than most is Kula, a decentralized impact-investment platform that has spent the past four years building a governance-first model for how capital should flow. Co-founded by Micah Yeackley, Chris Turner, and Samuel Chen, Kula's premise is simple but radical: before the money moves, the governance must be in place. Instead of fund managers dictating where investments go, Kula uses RegionalDAOs, decentralized autonomous organisations embedded in the very communities where projects are run. Residents, local operators, and investors all hold governance tokens that give them a direct vote on where capital is allocated. Smart contracts execute these decisions automatically, creating a permanent on-chain record. Every action can be audited in real time by all stakeholders, from local farmers to institutional investors. 'We start with governance because without it, the technology doesn't matter,' says Co-Founder and Chief Strategy Officer Samuel Chen. 'The token is not the product, it's the key to a treasury that communities and investors manage together, backed by legal structures that can stand up to institutional scrutiny.' Kula's Blueprint for Impact Investing of Unlocking Growth Where It Truly Matters Kula approaches impact investing as a critical avenue to build the future of worldwide communities, starting with the resources that sustain them. In Nepal's remote Tsum Valley, its hydropower project is bringing consistent, renewable electricity to a place where energy once felt distant and uncertain. The turbines power homes and schools, but they also power ambition, enabling local businesses, attracting new skills, and anchoring infrastructure that can serve generations. Exhausted soil locks farmers in cycles of low yields and low income, with no surplus to invest. In Zambia's Ukwimi district, the Agriculture RegionalDAO is reversing that trend. A 3,000-hectare land gift is being restored through regenerative farming, and blockchain governance ensures farmers guide its future. Better harvests feed the communities, with profits reinvested into the systems that keep productivity rising. But when water comes in destructive floods or fails entirely in drought, even the strongest farms can falter. In Lusangazi, Kula's WaterDAO has introduced balance by utilizing smart systems to store rain during the wet season and release it during the dry season. Crops are safeguarded, incomes remain steady, and the region's agricultural and energy gains are protected for the long term. Three places, three different constraints. Yet in each, Kula has stepped in at the pressure point and released the flow of progress. 'This is a landmark moment for us,' Yeackley says. 'Four years ago, we set out to build a platform that would treat governance as a first principle. The model brings capital and community together in a verifiable, auditable, and transparent way.' Regulation: The Infrastructure for Decentralized Finance By design, decentralized systems remove traditional intermediaries. This increases efficiency but strips away the layers of oversight that normally protect investors, verify claims, and ensure funds are deployed responsibly. Regulation fills this gap by setting governance, reporting, and transparency standards. Without it, even well‑intentioned projects risk being perceived as risky experiments, a perception that can shut the door to institutional capital and limit impact at scale. Leading jurisdictions are approaching the challenge in different ways, offering distinct pathways for impact-driven DeFi. The UK has created a structured yet innovation‑oriented framework. The Financial Services and Markets Act (2023) defines digital securities, unbacked crypto assets, and stablecoins, embedding strict AML/KYC requirements into financial promotion rules. Its permanent Digital Securities Sandbox lets platforms trial tokenized impact models with direct regulatory oversight. The EU's Markets in Crypto‑Assets (MiCA) regulation harmonizes standards across member states, mandating AML, KYC, governance, and reserve rules to support cross‑border scaling. Fully decentralized models are currently excluded, but reviews by ESMA and the European Commission signal that DeFi oversight is imminent. At the other end of the spectrum, the US remains fragmented: federal agencies enforce securities, commodities, and AML laws, while states like Wyoming lead with pro-crypto steps, such as DAO recognition and blockchain-specific banking. This opens up state-level opportunities, but the lack of unified rules can deter large-scale institutional investment. Kula's governance‑first approach is underpinned by institutional‑grade compliance. In 2025, it became the first to obtain a VASP license under Mauritius's VAITOS Act, authorizing it to issue regulated governance tokens linked to real‑world projects. Following the Governance Layer of Impact Finance Kula has built its platform on a principle that challenges the norms of traditional finance: governance takes precedence over capital through RegionalDAOs that embed decision-making authority directly into the communities where projects are located. Farmers in Zambia, hydropower operators in Nepal, and water managers in Lusangazi all hold governance tokens, vote on proposals, and see every decision executed on-chain. Every outcome is recorded on‑chain, executed by smart contracts, and visible to all stakeholders in real time. However, Kula is not alone. This approach sits within a growing constellation of impact-driven DAOs experimenting with how capital, verification, and community oversight can work together. GainForest, for instance, is a project focused on environmental incentives. It utilizes AI, drones, and satellite imagery to verify reforestation and then issues smart contract payments directly to land stewards when growth is confirmed. Donors can watch their impact unfold through dynamic 'NFTrees.' Another notable DAO, IXO Protocol operates as an 'Internet of Impact,' tokenizing verified social and environmental outcomes into digital assets that can be financed and tracked globally. As regulations mature and institutional capital follows, tokens can evolve from speculative assets into instruments of accountability and shared ownership. If the future of impact finance is to be both inclusive and effective, Kula's blueprint outlines the path to achieve this arduous mission.
Yahoo
16 hours ago
- Business
- Yahoo
Trump-Linked World Liberty Seeks $1.5B for Public Crypto Holding Firm: Bloomberg
World Liberty Financial, the decentralized finance platform with ties to the Trump family, is said to be in talks with large investors to raise about $1.5 billion for a public company that would hold its WLFI tokens. The deal's structure, Bloomberg reports, is still under discussion. The company approached deep-pocketed investors in technology and crypto, the report said, citing people familiar with the matter. Last year, the firm outlined plans for a crypto-lending app and currently issues USD1, a dollar-backed stablecoin that was used to facilitate MGX's $2 billion investment in Binance. WLFI tokens, initially launched as non-transferable governance assets, are expected to become tradable The move would see World Liberty Financial join a growing number of cryptocurrency treasury firms, which have been issuing debt and equity to accumulate millions worth of various tokens. WLFI itself already has a diversified token portfolio. Trump has adopted numerous pro-crypto policies, having just this week signed an executive order letting 401(k) retirement plans invest in alternative assets, including private equity and cryptocurrency.
Gizmodo
2 days ago
- Business
- Gizmodo
The Big Winners of the Trump-Era Crypto Boom
The crypto world is in a state of euphoria, and it has one person to thank: President Donald Trump. Since his victory last November, the man who promised to be the 'crypto president' has rolled out the red carpet for the decentralized finance industry, igniting a full-blown gold rush. In just over seven months, his administration has pushed through the landmark Genius Act, providing much-needed regulatory clarity, and signed an executive order to pave the way for crypto in 401(k) retirement plans. The result? A tidal wave of investment and optimism has flooded the market, creating a new class of winners. While most other economic sectors have treaded water this year, crypto and AI have been the standout performers. Here's a look at who is riding the Trump crypto boom. First and foremost, the cryptocurrencies themselves have soared. A handful of publicly traded companies made massive, risky bets on Bitcoin years ago. That gamble is now paying off spectacularly. Tesla: The electric carmaker has held Bitcoin since early 2021. Though it has sold some of its holdings, Elon Musk's company still possesses 11,509 BTC, according to Bitcoin Treasuries. Purchased for an average price of about $33,500 each, its initial $386 million investment is now worth a staggering $1.34 billion as of time of writing. Block: The fintech company co-founded by former Twitter CEO Jack Dorsey holds 8,692 BTC. Its $271.6 million investment is now valued at over $1.01 billion, a gain of 272%. MicroStrategy: Led by the famous Bitcoin maximalist Michael Saylor, the software company is what the crypto world calls a 'whale'—an entity that holds so much of an asset it can influence the market. MicroStrategy, recently renamed Strategy, owns an incredible 628,791 BTC, currently worth over $73 billion. Riot Platforms: This relatively unknown company is one of the largest publicly traded Bitcoin miners in the U.S. Bitcoin mining involves using powerful computers to solve complex puzzles, which secures the network and earns the miner new coins. Riot's strategy was to accumulate and hold the Bitcoin it mined. Its stash of 19,239 BTC, acquired for a pittance, is now a treasure trove worth $2.24 billion. The companies that act as the gateways for everyday investors have also seen their fortunes explode. Coinbase: The largest and only publicly traded crypto exchange in the U.S. has seen its valuation soar from $60 billion on election day to nearly $80 billion today. Circle: The company behind the USDC stablecoin, went public on June 5. In a matter of weeks, its stock exploded by an almost unprecedented 675%, adding over $42 billion to its market cap. Its business model is brilliant in its simplicity: you give them a dollar, they give you a digital USDC token, and they collect the interest from safely investing your dollar. Robinhood: The popular retail investing app has been a massive beneficiary of the renewed crypto hype. Its valuation has grown from $22 billion last November to nearly $100 billion today, a gain of almost $80 billion. The boom has also directly benefited the President's own inner circle. Members of the Trump family, including the President himself, have disclosed holdings in various cryptocurrencies, meaning their personal portfolios have swelled in value thanks to the very policies the administration is enacting. Furthermore, the TRUMP meme coin ($TRUMP), while not officially affiliated with the President, has a market value of $2 billion as a direct result of his political brand and pro-crypto stance. This has led critics to raise serious concerns about unprecedented conflicts of interest, arguing that the President is creating regulations that personally enrich his family and brand-adjacent assets. Finally, there are the countless anonymous investors who bought Bitcoin when it was cheap, whether in its early days or during the 'crypto winter' of 2022. For them, the gains have been colossal. The Trump boom has solidified their fortunes and minted a new generation of crypto millionaires. The Trump administration's embrace of cryptocurrency marks one of the fastest policy-to-market turnarounds in recent history. With legislation like the 'Genius Act' and a regulatory green light for crypto in retirement accounts, the U.S. has gone from a patchwork approach to actively championing digital assets. The result: vast wealth creation for early believers, institutional players, and a handful of companies that have tied their fortunes directly to Bitcoin and its crypto cousins.
Bloomberg
6 days ago
- Business
- Bloomberg
Ether Surges As Crypto Buying Intensifies
"Bloomberg Crypto" covers the people, transactions, and technology shaping the world of decentralized finance. Today's guests: Figment Co-Founder and CEO Lorien Gabel and SaverLife CEO Leigh Phillips. (Source: Bloomberg)
Gizmodo
03-08-2025
- Business
- Gizmodo
The SEC Shifts Gears on Crypto
The Securities and Exchange Commission made its biggest pro-crypto move yet this week. On Thursday, SEC Chairman Paul Atkins launched 'Project Crypto,' an overarching roadmap of the Commission's approach to regulating cryptocurrency. The aim of the project, according to Atkins, is to make the United States 'the crypto capital of the world' by onshoring crypto asset distributions. Atkins hopes to do so by updating the Commission's rules and regulations regarding on-chain software systems, encouraging experimentation with new technology like 'tokenization,' and opening the door to the reclassification of most crypto assets as an investment contract rather than a security. The plan also aims to encourage decentralized finance initiatives that operate without intermediaries and 'super apps' that integrate payment ability with other functions like social media (one example being Elon Musk's vision to transform X into an 'everything app'). It's a huge departure from the SEC's previous approach to crypto under former chairman Gary Gensler, who became crypto industry's public enemy number one due to his strict regulatory approach. Atkins made sure to hammer that point in. 'It's a new day at the SEC and we are picking up the gauntlet and the challenge that President Trump has laid down,' he told CNBC on Friday. Gary Gensler's approach to crypto as SEC chairman was less 'laissez-faire' and more focused on compliance. In an effort to protect investors, Gensler's administration insisted that crypto tokens are overwhelmingly considered securities and are therefore covered under existing legal framework and require full disclosure and SEC registration. That made it especially rough for decentralized finance initiatives. Under Gensler, the SEC launched a wave of lawsuits against crypto exchanges like Coinbase and Binance, claiming that they operated outside the law. The crypto industry deemed this to be regulatory overreach and claimed that it was pushing American crypto innovation overseas. In comes Trump, who ran on a pro-crypto campaign in the 2024 presidential election even though he was once a skeptic himself, claiming that crypto was 'a disaster waiting to happen' back in 2021. One of Trump's first courses of action following the inauguration was to establish a federal crypto working group, chaired by the President's AI and crypto czar David Sacks. That group just released a 160-page report on Wednesday detailing policy recommendations. Trump also recently signed into law the Genius Act, a bill that establishes the first federal regulatory framework for stablecoins, a type of cryptocurrency that is designed to have less volatility than traditional forms by pegging it to the U.S. dollar. The Genius Act was a huge win for the crypto industry, allowing banks, credit unions, and other institutions to issue stablecoins. Although Atkins' SEC and the Trump administration at large are ushering in an era of cryptocurrency regulation with some consumer protections, still the roadmap for it seems to involve minimal red tape. The focus instead is overwhelmingly on legitimizing on-chain technology in the financial system. And that seems to be working: A huge array of big companies are rushing to explore blockchain projects. On Thursday, J.P. Morgan announced that it will be partnering with Coinbase to allow crypto purchases via clients' Chase credit cards, and Bank of America CEO Brian Moynihan said earlier this month that the bank is planning on launching a stablecoin. Crypto enthusiasts hype its ability to streamline financial processes by cutting out intermediaries and say that it helps give anyone across the globe access to financial accounts. They also praise the privacy and anonymity it provides. But that obviously comes with downsides. Critics view cryptocurrency as a threat to the financial system: the same mechanisms crypto uses to streamline and increase accessibility to financial services can also be used for money laundering, sanctions evasions, and scams. According to the FBI, Americans have lost over $3.9 billion to about 150,000 crypto fraud schemes in 2024 alone. Crypto is also notorious for its volatility, prone to crashes, and has been mired in controversy, notably since the Sam Bankman-Fried scandal. And crypto skeptics in Congress are also pointing out that the Trump administration's regulatory push towards legitimization overlooks one glaring problem: Trump's own conflict of interest. The Trump family runs several crypto projects, from crypto banking platform World Liberty Financial that offers a stablecoin called USD1 to an empire of memecoins and a bitcoin mining business co-founded by Eric Trump. Not only the Trump family but his entire cabinet's burgeoning crypto empire is viewed by many critics as a blurring of lines between personal business interests and official policy. The regulatory actions taken so far could be seen as self-dealing. 'Trump is using the presidency to enrich himself through crypto, and he's doing it in plain sight,' one of Trump's biggest critics on the matter, Sen. Elizabeth Warren, told Vanity Fair last week.
