Everybody keeps talking a big game about tens of millions or hundreds of millions or even billions of dollars coming onchain. I want to share some insights on why I've focused all my efforts and creativity on
@Multihopper
The fact is, the real opportunity is somewhere between $21 trillion and $42 trillion USD a day that is moving through SWIFT. It's double that if you include RWAs and equities.
Trillions. Each day.
To solve for this, programmability is more important than building privacy alone. There are some things that need to be said about approaches to privacy. The first one is that code is a crime.
Especially when you're profiteering from that code being used. It's like leaving a gun in a playground and saying that kids should be smarter than picking up a gun and shooting each other, or that no one should really touch a gun that is not theirs.
The moment you start messing around with the ability to transfer enormous amounts of funds, you are facilitating nefarious intent for terrorist organizations and criminals. If you are profiteering off the use of that code, you are 100% enabling and part of the problem.
One of the worst cases of this is the widespread addiction to doing privacy through pools.
Pools share the risk of one bad asset entering the pool and everybody being tainted. Of course, everybody keeps talking about the fact that you can keep these tracks segregated, but if you think that is going to fly with regulators, you simply don't know how the world works and how this kind of stuff plays out. Even if you got one regulator to be okay with this for a period of time, they easily could change their mind as soon as another one steps in their place. It certainly won't be uniform across all territories.
Unraveling the mess of this afterwards and stopping people from getting debanked just for being present in that pool or having used it in the past or in the future unknowingly has widespread ramifications not easily undone, if at all.
Another good point against the concept of pools is that they are impossible to keep sufficiently liquid to transfer enormous amounts of any asset. This is why people like Uniswap simply won't touch them:
- the regulatory risk
- the contamination issues
- The fact that they are open to exploits and manipulation, and are too hard to keep liquid.
You can't have dark pools for every single asset in existence, or even the top 10 meaningful ones, and keep them sufficiently incentivized.
The pools have the issues of contamination risk, are regulatory radioactive, and are open to massive slippage and exploit issues, as well as being too difficult to stay incentivized.
So, building on MultiHopper, we made some very simple choices:
1. No pools/ commingling by design
2. Permissionless
3. Non-custodial
4. As absolutely onchain as possible, pref 100%
5. Any asset, any amount, no liquidity requirements
6. Uncompromising stance on compliance. Thanks to our partnership with
@trmlabs we scan every wallet in the route and all assets for AML, sanctions, CTR, illegal and stolen funds.
This is why we're closing POCs with some of the largest entities in FinTech and in crypto: we're not shoving something down their throat. We're giving them something they recognize and are comfortable with and that meets the market where it's at.
I'm a huge fan of all the forms of innovation, such as TE, FHE, TEFHE, ZK, and so forth. There is no one who can convince me that we're wrong about pools to create the primitive for programmable money.
And after reading this, I'd be extremely surprised if you weren't the same camp with us.
Build with MultiHopper Today. Live on
@Solana.
(here is a cheeky video of my cofounder Kuj to share more)