The Ultimate On/Off Ramps

First, I need to apologize that there hasn’t been a Weekly Axis newsletter in a couple weeks. With everything else going on, it just kept getting put on the back burner. It won’t happen again.

Hopefully you’ve been keeping up through our X and Linked In accounts, and the podcast we re-started.

This week isn’t going to focus on the price of crypto assets - although they’ve had a great week after it seems the GBTC selling has stopped.

Today we’ll focus on on/off ramps, and infrastructure.

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Axis News Updates

PayPal and Transak - The Ultimate On/Off Ramps

Always onchain

A few weeks ago we got two news items in the same week, and both address something I usually refer to as the ultimate on-ramp and the ultimate off ramp.

The Ultimate Onramp

Let’s start with the onramp news. PayPal Ventures made an investment in a company called Mesh - which aims to be the Plaid of Crypto. Mesh is essentially creating links between blockchains so I can feel comfortable moving my assets around on different chains while keeping those assets onchain.

But that’s not the exciting part for me.

The exciting news is that, of PayPal’s $6.5 million investment in Mesh, $5 million was by way of their stablecoin PYUSD.

They sent 5 million PYUSD to Mesh.

So Mesh has 5 million stablecoins worth $1, backed by a dollar, in their corporate treasury.

They can keep part or all of that 5 million onchain.

If they have to pay their developers and other employees, they can do so onchain. They can pay some of their bills onchain as well.

For Mesh and their employees, this is the ultimate onramp. They don’t have to go from bank to exchange to get onchain.

File that thought away for a moment as we go to the next bit of news.

And now the offramp

Transak is working with Visa Direct to give users the ability to pay straight from their digital wallet using a debit card wherever Visa is accepted.

So now Mesh, or their employees can pay for goods and services the same way they always have…using cards.

However, they never have to move crypto assets like stablecoins back to an exchange and to a bank to pay. They can keep their money onchain and never have to touch a bank again.

This was part of the goal of Bitcoin when it was launched in 2008. The ability to transact financially without having to ask a bank’s permission, and without the fees and friction of the bank.

Earn onchian and not in volatile crypto assets, and not in volatile crypto assets, but in something that looks and feels like a dollar. Spend from that wallet, also in something that looks and feels like a dollar.

So, what does this mean for advisors?

1. Companies with enormous user bases like PayPal and Visa are already facilitating onchain transactions. The adoption will happen without many of us having to think crypto.

2. More people (some will be your clients) will be earning onchain. Your role could be to help with wallet and account setup and security.

3. Your role might also be to help manage onchain funds - income, expenses, investments, cash flow. Your clients will have access to different options for earning and investing onchain.

4. More adoption and usage of crypto networks like Ethereum and Solana should lead to demand for their native tokens ETH and SOL. More demand = higher value.

Conclusion

The move to more onchain money transfer and custody will happen sooner than we think because the established players are building on blockchain rails.

Best to start understanding sooner to be able to help clients with their cash management, investments and security.

We Launched a Podcast!

Years ago we had a podcast about crypto and DeFi, and we decided to re-launch the Interaxis Podcast. Now we’re talking about the happenings in crypto, and how they affect you, the financial advisor.

Interaxis Podcast

If you’re enjoying this, tell your friends. Always something happening in crypto and we’ll break it down for you.

See you next week!

-Adam