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THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

ETH STRATEGY: LEVERAGED EXPOSURE TO ETHEREUM

ETH Strategy is an autonomous onchain treasury protocol that mirrors MicroStrategy's convertible debt model, allowing users to deposit stablecoins in exchange for STRAT, a leveraged ETH token with no liquidation risk. Leverage is provided through long-term bonds and option NFTs, which fuel treasury growth only when real value enters the system. Deposited ETH is put to work earning yield while STRAT holders govern bond control, treasury allocations, and liquidity incentives. The result is permissionless, composable DeFi-native leverage designed for institutional-grade sustainability.

THOUGHTS ON STABLECOIN BANKS

One type of stablecoin bank would allow customers to automatically earn T-bill yield on deposits, with bank activities being performed in stablecoins but still providing the user with the expected banking experience. A bank designed this way might prevent a threat to our current banking system, since it would drive money from fractional reserve banks or be a stablecoin not 1:1 backed with dollars. A stablecoin created by a federally chartered bank that operates a fractional reserve model can solve this problem and is starting to be explored.

ROBINHOOD'S BIG TOKENIZATION PUSH

At EthCC, Robinhood unveiled its EVM-compatible “Robinhood Chain” on Arbitrum Orbit, featuring a token engine that mints and burns onchain wrappers for offchain-custodied equities. Users can trade these stock tokens in-app or self-custody them in wallets, transfer them onchain, and access 24/5 trading (eventually 24/7), leveraging its Bitstamp acquisition for off-hours execution. By operating the sequencer and owning the tokenized assets, Robinhood captures all transaction fees and monetizes the full “tokenization stack,” including offshore trading of private company share tokens for EU users. The plan faces significant regulatory uncertainty, with open questions about SEC approval, issuer consent, and SIFMA's objections to off-market tokenized equity trading.

CRYPTO HAS NO SOUL

Crypto faces a “missing soul” problem, marked by misaligned priorities between people, products, and narratives that stem from a pervasive lack of genuine care. True culture, and the loyalty it fosters, emerges when projects respect shared history and build on existing legacies rather than invent new myths. Vulnerability and authenticity in human-to-human interactions infuse products with real meaning, bridging divides between diverse subcultures. Absent these deeper connections, crypto innovation remains fragmented and transactional, lacking the enduring bonds that define lasting movements.

STABLECOINS THREATEN VISA REVENUES

Visa's Q4 2024 earnings highlight that cross-border volume (13–15% YoY growth) remains a core business driver, especially outside intra-Europe. When users transact abroad, like using an Estonian-issued card in the U.S., Visa must route funds via costly correspondent banking rails, adding surcharges (e.g., 1.5%). In contrast, stablecoins are borderless by default, eliminating both the need to move money across borders and the fees associated with it. This presents a structural threat to legacy networks like Visa, Mastercard, and PayPal, whose margins depend heavily on cross-border volume.

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