Crypto now has its own version of the S-1

Last week Blockworks Research, L1D, Theia, and portfolio fund Pantera unveiled the Token Transparency Framework: a standardized disclosure protocol for token-based projects. Think of it as a lightweight, crypto-native S-1 form to be filled in when initially registering a token to the market: a credible, public document that spells out tokenholder rights, economic entitlements, and governance structures in clear terms. The goal is to fix a growing problem in crypto: adverse selection.

In theory, open token markets should allow the best projects to access capital efficiently. But in practice, information asymmetry has made that harder. Good teams hesitate to launch tokens for fear of being lumped in with lemons, aka projects that obfuscate token rights, execute side deals, or spin up second tokens that dilute the original. Without clear disclosure standards, investors can’t tell strong projects from weak ones. So they price everything cautiously, as if it might turn out badly.

The Token Transparency Framework aims to change that. Like an S-1, it creates a structured way for protocols to signal alignment, share disclosures, and build trust with the market. Over time, it could become a simple binary filter: if a team doesn’t opt in, maybe you don’t need to dig deeper.

More importantly, it further lays the groundwork for institutional adoption. As tokens mature into full capital formation tools, the need for standardized, auditable, investor-grade disclosures becomes a must. Institutional capital won’t move without clarity on rights, economics, and governance. Now, that clarity has a format.

If crypto is serious about becoming a new capital market and not just a speculative playground, it needs the equivalent of GAAP, 10-Ks, and S-1s. The Token Transparency Framework is a good step in that direction.

Also this week

• One of the biggest payment processors on earth is dropping its own stablecoin, and Mastercard will adopt it
• US Housing Chief orders Fannie Mae, Freddie Mac to prepare for crypto assessment in mortgages
• Federal Reserve removes 'reputational risk' from bank examinations in a 'win' against crypto debanking
• Kraken secures MiCA license in Ireland to scale European operations
• Blockchains may finally free banks from COBOL
• Reddit weighs Sam Altman’s iris-scanning World ID for user checks

Relevant financial updates

• Sahara AI*, a decentralized protocol where everyone can create and monetize AI models, datasets, and applications in a collaborative space, built on the Sahara Blockchain, has its TGE and is now trading at a $1bln FDV
• Humanity Protocol*, a decentralized identity system that enables users to verify their unique human identity through non-invasive palm scans, ensuring privacy via zero-knowledge proofs, had its TGE and is now trading at a $200mln FDV
• Nash (fka Once Upon)*, an open-source middleware platform that enables AI models to interact with virtually any API, application, or file system by generating Python code and shell commands dynamically, has been acquired by Chainalysis* for an undisclosed amount
• Blueprint Finance*, a company focused on creating and managing on-chain credit and debt products, has raised $9.50mln in a Strategic funding round with investments from YZi Labs (formerly Binance Labs), Polychain Capital, Selini Capital, Presto Labs, Gate Ventures and 14 others
• GTE*, a decentralized exchange platform on the MegaETH blockchain, offering a central limit order book, automated market maker, and token launchpad, has raised $15mln in a Series A funding round with investments from Paradigm
• Veda*, a yield optimization platform that simplifies decentralized finance participation by delivering tokenized yield directly in the user interface, has raised $18mln in a funding round with investments from Coinbase Ventures, Animoca Brands, GSR Investments, CoinFund, Maelstrom and 1 othe
• Digital Asset*, a company that provides global businesses with everything they need to connect and build on Canton Network, a leading network for tokenized real-world assets, has raised $135mln in a Strategic funding round with investments from Polychain Capital, Circle Ventures, Republic, Liberty City Ventures, QCP Capital and 11 others
• Yield.xyz, a DeFi infrastructure provider offering a unified API that aggregates over 200 yield sources across more than 75 networks, primarily in the Solana ecosystem, has raised $5mln in a Strategic funding round with investments from Multicoin Capital and Lightspeed Venture Partners
• Zama*, an open-source cryptography company focused on developing Fully Homomorphic Encryption (FHE) solutions for blockchain and AI, has raised $57mln in a Series B funding round valuing the company at $1bln with investments from Pantera Capital and Blockchange Ventures
• Kalshi, an American, CFTC‑regulated predictions market who competes with Polymarket, has raised $185mln in a Series C funding round valuing the company at $2bln with investments from Multicoin Capital, Paradigm, Sequoia Capital, Bond Capital, NEO and 1 other
• Niural*, a company that offers a comprehensive suite of HR management solutions including stablecoin-powered payment solutions, has raised $31mln in a Series A funding round with investments from Alliance DAO, New Form Capital, Hustle Fund, M13, GS Futures and 2 others

*Underlying TBV portfolio position | Prices as per 27/06

Interesting things to read

• "World: A Mission-Critical Identity Solution", a deep dive from Pantera Capital into Sam Altman’s co-founded project, World
• Mike Dudas from 6th Man Ventures (one of our managers) discusses the current state of crypto venture on the Lightspeed podcast

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