The Empire crew unpacks Blockworks’ strategic pivot to data, makes the case for a 20-year crypto bull run, and dissects major deals from Securitize’s IPO to Western Union’s controversial partnership with Solana.
Blockworks’ Big Pivot
- “2025 is a line in the sand moment for the industry. I think where we are is kind of 2003, 2004 for the internet. Like boom, bust, rebirth. We're entering a 20-year bull market for the industry.”
- “A company only gets one, maybe if they're extremely lucky, two things that they can be world-class at... We're going to be world-class at building software and data.”
Blockworks is sunsetting its news division to go all-in on its data and software business. The move reflects a belief that to win in the next cycle, focus is paramount. While the news team was highly respected, the data business is where the company has found explosive product-market fit, with a vision to become the "Bloomberg for crypto." This pivot signals a broader industry maturation, where the next decade's mega-trend will be real companies and revenue—not just assets—moving on-chain.
Tokenization Goes Public
- “There is a secular tailwind right now behind tokenization... When this goes public, it will be the only avenue for people to express that [view].”
Securitize is going public via SPAC at a $1.25B valuation, marking a major milestone for the tokenization space. The investment thesis is simple: Securitize offers the only pure-play, public market exposure to the tokenization of real-world assets. Much like Circle became the go-to stock for stablecoin exposure, Securitize is positioned as the public proxy for this secular trend, potentially attracting a valuation that transcends its underlying fund administration business model.
Paying for Adoption
- “Do I think it is likely they paid them? Yes. And the reason I think that is true is because almost all of these deals are paid... I think the question becomes is there real ROI on this?”
Western Union is launching a stablecoin on Solana, a move widely believed to involve a multi-million dollar payment from the Solana Foundation for a six-month exclusivity period. This "pay-to-play" strategy is common for kickstarting network effects, from Amazon Alexa to Facebook. The debate isn't whether paying for adoption is wrong—it's standard business practice—but whether it generates sustainable, long-term value for the protocol or just a temporary, incentive-driven sugar rush.
Key Takeaways:
- The crypto industry is maturing, leading to consolidation and specialization. Companies are shedding non-core businesses to double down on their strengths, while TradFi giants are aggressively partnering to gain a foothold. The next wave of value will come from real-world utility moving on-chain, not just speculation.
- The "Bloomberg for Crypto" is the Endgame. The most valuable companies will provide institutional-grade data and software. Blockworks' pivot is a bet on this future, moving from a crowded news business to a high-growth data platform with clear product-market fit.
- Tokenization is Now a Publicly Traded Thesis. With Securitize’s IPO, investors can make a direct, public-market bet on the tokenization of real-world assets. It will likely be valued as a high-growth proxy for the entire sector.
- Adoption is Bought, Not Begged. Layer 1s are aggressively paying for partnerships with brands like Western Union. For investors, the question is whether these deals create a sustainable flywheel or just a temporary boost.
For further insights and detailed discussions, watch the full podcast: Link
This episode unpacks the crypto industry's pivotal shift towards maturity, where strategic consolidation, public market listings, and legacy finance integrations are setting the stage for a 20-year secular bull market.
Blockworks' Strategic Pivot: From News to Data
- The Rationale: Jason states that a company can only be truly excellent at one or two things. Blockworks' leadership meetings were increasingly dominated by discussions of data and software, making it a disservice to the news team not to give them the company's full focus. The goal is to build a durable, winning company for the next two decades.
- Community Reaction: The hosts discuss the online backlash to Jason's announcement tweet, which he admits was poorly framed by mentioning record revenue alongside layoffs. He reflects on it as a learning moment, emphasizing that the best way to judge a company's integrity during a layoff is by the sentiment of former employees, not online commentators.
- Future of Crypto Journalism: Despite Blockworks' exit, the hosts agree that the crypto journalism landscape is maturing. They highlight strong work from outlets like Unchained, CoinDesk, The Defiant, and even traditional publications like Bloomberg and The Wall Street Journal, suggesting the industry's information needs are well-served.
- The Data-Driven Future: The conversation pivots to Blockworks' data business, which has found "extreme product market fit" with average deal sizes in the hundreds of thousands. Jason notes the mega-trend is shifting from assets moving on-chain to entire companies and real revenue moving on-chain, positioning Blockworks to be the go-to data provider for this new era.
The 20-Year Secular Bull Market Thesis
- A Line in the Sand: Jason declares, "2025 is a line in the sand moment for the industry... We're entering a 20-year bull market." This view suggests that despite short-term volatility and bearish sentiment, the underlying trend for crypto adoption and integration is secularly upward.
- Historical Parallel: The period is compared to the early 2000s for the internet, which saw a boom, a bust, and then a sustained period of growth as real business models emerged. The hosts believe crypto is now entering that sustained growth phase.
- Strategic Implication: For investors and researchers, this long-term perspective is crucial. It suggests focusing on fundamental trends and infrastructure plays rather than getting distracted by short-term price action, as the winners in this new phase are expected to win big.
Public Market Moves: Securitize Signals the Tokenization Era
- What Securitize Does: Rob explains that Securitize acts as a transfer agent and fund administrator for tokenized securities. It manages the records of ownership, handles KYC/AML, and oversees the administration for tokenized assets, notably being the transfer agent for BlackRock's BUIDL fund.
- Valuation Analysis: With a reported $86 million in topline revenue, the valuation is steep for a traditionally low-margin business. However, Rob points out a critical factor: "When this goes public, it will be the only avenue for people to express that [tokenization] play."
- Investor Insight: Securitize is positioned to be the public market's pure-play bet on the tokenization mega-trend, similar to how Circle became the go-to stock for stablecoin exposure. Investors should watch its performance as a bellwether for broader market appetite for real-world asset tokenization.
Western Union's Solana Integration and the "Pay-to-Play" Debate
- The Deal: Western Union, a legacy remittances giant, is launching a US dollar payment token on Solana, issued by Anchorage. This move is seen as a major step for a company previously dismissive of stablecoins and struggling with digitization.
- The Payment Controversy: The hosts address rumors that the Solana Foundation paid Western Union a significant sum (figures like $25-50 million were cited on Twitter) for a six-month exclusivity period. Rob, drawing on his industry experience, confirms that such payments are common practice for securing major partnerships and are not inherently negative.
- Strategic Rationale: For Solana, the goal is to bootstrap liquidity and transaction flow to compete with Ethereum and Tron in the payments vertical. For Western Union, it's a way to de-risk its entry into blockchain and revitalize its declining business model.
- The Bet: The discussion culminates in a friendly wager. Santi bets that Western Union's stock (trading at a ~4x P/E ratio) will outperform Solana's token (SOL) over the next six months, arguing for fundamentals over growth. Rob takes the other side, betting on growth.
Mastercard's Rumored Acquisition of Zero Hash
- What Zero Hash Does: Zero Hash provides the licensing and technology for crypto on-ramps, off-ramps, and trading. Its core offering is a brokerage-as-a-service, which allows companies like Interactive Brokers and DraftKings to offer crypto trading to their users without building the infrastructure themselves.
- Market Context: This potential acquisition follows rumors of Coinbase acquiring BVNK and highlights a clear trend of major payment companies buying, not building, their crypto infrastructure. Rob notes that every major financial organization was "kicking tires" on potential acquisitions at the recent Money 20/20 conference.
- Strategic Implication: The acquisition would give Mastercard critical infrastructure to support stablecoin payments and other crypto services. For investors, this signals an acceleration of M&A in the crypto-as-a-service space, making remaining independent players like Bridge and Conduit Pay potentially more valuable.
The "Credibly Neutral" Infrastructure Debate
- Stripe's Tempo: The hosts analyze Stripe's launch of Tempo, its own chain for payments. Rob argues this is a "credibly non-neutral play," as it positions Stripe to compete directly with its partners. While Tempo may offer superior infrastructure, other payment service providers will be hesitant to route volume through a direct competitor's network.
- Networks vs. Service Providers: Visa and Mastercard have historically maintained neutrality to serve all banks and merchants equally. By launching its own chain, Stripe is taking a more opinionated stance. This creates a strategic dilemma for other players: partner with a competitor or seek alternative, more neutral infrastructure?
- Future Outlook: The key question is whether an incumbent like Stripe can build infrastructure so compelling that partners are forced to use it despite the competitive conflict. This dynamic will shape the future architecture of on-chain payments.
MegaETH's Community-Focused ICO
- Overwhelming Demand: MegaETH's fundraise was 28x oversubscribed, with over 50,000 bidders committing nearly $1.4 billion for a $50 million allocation. The final valuation landed at $1 billion.
- A New Model: The hosts praise MegaETH's approach, which prioritized community distribution and included a one-year lock-up for U.S. investors, signaling a focus on long-term holders over short-term traders. This model stands as a successful alternative to traditional venture-heavy funding rounds.
Conclusion
This episode highlights the crypto industry's transition from a speculative phase to one of strategic consolidation and real-world integration. Investors and researchers must now focus on the convergence of legacy finance and crypto infrastructure, as M&A activity and public market listings will define the next cycle's winners.
