Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Online Funding / Investing Campaigns
Ledn & Parallel Partner on Crypto-Backed Real Estate Investments in the Cayman Islands
Release | Aug 28, 2023
Image: Unsplash/Marc Babin
In an exciting development for digital asset enthusiasts, Ledn and Parallel have collaborated to pave the way for crypto-backed real estate investments in the Cayman Islands.
- This partnership allows crypto holders to use their assets as collateral for loans, enabling them to dive into the Cayman Islands' real estate market without resorting to fiat currency.
- Ledn and Parallel's collaboration isn't just innovative; it's also compliant with regulatory standards. Both companies are recognized and regulated by the Cayman Islands Monetary Authority as Virtual Asset Service Providers. This ensures that their services adhere to the stringent guidelines set by the regulatory body, providing an added layer of trust and security for investors.
See: Ledn Receives VASP Regulatory Approval in the Cayman Islands
- Parallel's transaction services have been designed to seamlessly connect crypto investors with non-crypto real estate sellers. This integration ensures that property purchases remain smooth, irrespective of the chosen mode of payment.
- For those considering taking out a Ledn loan using their crypto assets, it's essential to note the specifics. Investors can use Bitcoin as collateral. The loan-to-value ratio starts at 50%, with an annual interest rate set at 12.9% APR. These terms provide clarity for potential borrowers, ensuring they make informed decisions.
The Lure of Cayman's Real Estate Lifestyle
- The real estate market in the Cayman Islands is diverse and thriving. Whether you're considering relocation or eyeing a vacation home, there's something for everyone. Parallel's achievements, including facilitating property transactions ranging from US$1 million to US$12 million since 2022, highlight the market's vast potential.
See: List of Digital Nomad Visas (TechPats) by Country
- The Cayman Islands, along with several other countries, offers the "Golden Visa" as part of their citizenship-by-investment programs. This initiative not only provides investors with a chance for permanent residency but also opens a potential path to future citizenship. With the combined efforts of Ledn and Parallel, even crypto-native investors can now leverage this program, using their Bitcoin and USDC to make real estate investments in the Cayman Islands.
Why Wait?
- As the world evolves, so do the opportunities for investments, and what better place to consider than the Cayman Islands? Renowned for its pristine beaches, vibrant culture, and a lifestyle that promises both relaxation and luxury, life in the Caymans is nothing short of a dream.
- With the added advantage of crypto-backed real estate investments, that dream is now within reach for many. So, as you contemplate your next investment move, remember that a piece of paradise in the Caymans, backed by the power of digital assets, awaits you.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Aligning Fees with Sustainability Goals – Impact Linked Carry
Impact Investing | Aug 23, 2023
Image: Unsplash/John Cameron
In the intricate dance of finance, impact investing is taking center stage, pushing for a harmonious blend of profit and purpose. Drawing insights from a recent PitchBook article, we delve into how limited partners are influencing the alignment of fund fees with sustainability goals.
The Rise of Impact Funds
- Environmental, social, and governance (ESG) factors have become a cornerstone for LP mandates.
- Recent reports, such as the 2022 PwC study, highlight an anticipated growth in ESG-related assets under management (AUM) to a staggering $33.9 trillion by 2026, up from $18.4 trillion in 2021. This surge underscores the increasing importance of sustainable investments in the global financial landscape.
- Despite a general slowdown in PE fundraising, impact-focused funds have shown remarkable resilience. Data from PitchBook reveals that 2022 saw impact funds amass nearly $22 billion across 21 global funds, setting a new benchmark for capital accumulation.
See: Alternative forms of capital will be key to develop sustainable economic systems
- Paula Langton, a renowned figure in fund placement at Campbell Lutyens, noted a surge in sustainability-focused activities. She emphasized the growing willingness of LPs to commit to newer, previously unheard-of entities, especially those centered around climate action.
Impact-Linked Carry
- Furthermore, LPs are now advocating for GPs to tether their carried interest to tangible goals, such as carbon emission reduction or enhancing gender and racial diversity within portfolio company boards.
- The concept of impact-linked carry isn't novel. It traces its origins back to the late 2000s when Aureos Capital in London introduced a base rate of carry with provisions for enhanced rates upon achieving impact targets.
- Fast forward to today, and industry giants like Apollo Global Management and EQT have adopted similar models, linking carried interest to the realization of an impact fund's mission.
Challenges and Authenticity
- However, the road to impact investing is not without its challenges. Luke Dixon, a key player at Dot Investing, highlighted potential pitfalls, such as GPs potentially prioritizing data collection over genuine impact. The onus of proving an investment's impact lies with the GPs, but LPs and consultants are investing heavily in ensuring authenticity and preventing practices like greenwashing.
See: Report: ESG Ratings and Data in Financial Services – Practitioners Perspective
- With the rapid growth of impact investing, regulatory bodies are stepping in. Proposals from the European Securities and Markets Authority suggest stringent criteria for funds using "impact" in their names, emphasizing measurable social or environmental impacts. The European Investment Fund pioneered the emphasis on genuine impact investments back in 2008. Today, the sector is witnessing exponential growth, with GPs bolstering their presence in this promising domain.
In Conclusion
- The landscape of impact investing is undergoing a transformative shift. As the sector matures, collaboration between LPs, GPs, and regulatory bodies will be pivotal in ensuring that impact investing not only promises but also delivers a sustainable future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Historic Nod from Regulators. Coinbase Secures Approval for Crypto Futures Trading
Regulatory News | Aug 16, 2023
Image: Unsplash/PiggyBank
Coinbase Global Inc., a leading cryptocurrency exchange, has secured the green light to offer crypto futures trading to its clientele.
A First in the U.S. Crypto Space
This monumental approval comes nearly two years after the company initially applied. The National Futures Association (NFA) has granted Coinbase Financial Markets the permission to operate as a Futures Commission Merchant (FCM). This role is pivotal as FCMs are responsible for buying or selling futures contracts, akin to market makers.
See: Coinbase’s CEO Speaks Out on the SEC’s Request to Delist Assets (Except Bitcoin)
With this approval, Coinbase has etched its name as the first crypto-centric platform in the U.S. to provide regulated and leveraged crypto futures alongside traditional spot trading. Andrew Sears, CEO of Coinbase Financial Markets, emphasized the significance of this move, stating, "Offering US investors access to secure and regulated crypto futures is key to unlocking growth and enabling broader participation in the crypto economy."
Positive Response and Future Outlook
Following the announcement, Coinbase's stock witnessed an uptick, opening over 4% higher. The company views this approval as an "important milestone," especially considering that approximately 75% of global crypto trading volume stems from the derivatives market. Furthermore, Coinbase remains committed to working with regulators, emphasizing its dedication to operating a regulated and compliant business.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Gary Gensler’s Vision for the Private-Funds Sector: Accountability and Cost Reduction
Capital Markets Regulation | Aug 9, 2023
Image: Unsplash/Chenyu Guan
The U.S. Securities and Exchange Commission (SEC) is set to introduce a transformative regulatory shift that will shake up the private-funds industry, particularly private equity and hedge funds.
More Transparency and Investor Protection
- The SEC's impending rule package is designed to bolster transparency, competition, and investor protection in the private-funds sector. This move comes as a response to concerns about fee structures, potential mismanagement, and risks to financial stability posed by private funds.
- Key aspects of the proposed overhaul include:
- Quarterly statements and annual audits for investors.
- Increased liability for fund managers in cases of mismanagement or negligence.
- Prohibition on offering preferential terms to specific investors via side letters.
- Enhanced disclosure requirements to both investors and regulatory bodies.
Industry Resistance and Compliance
- Since the introduction of these proposed rules, representatives from private equity, hedge funds, and venture capital have actively engaged with the SEC. Their lobbying efforts have even reached lawmakers, with industry stakeholders forming groups to challenge the SEC's plans. This resistance highlights the significant impact the SEC's proposed changes could have on their operations.
See: Modernizing private equity capital markets in Canada
- The upcoming SEC rule package signifies a pivotal moment for the private-funds industry, emphasizing transparency, accountability, and investor protection. As the regulatory environment undergoes this major shift, compliance officers will play a crucial role. They will guide private equity and hedge funds through these changes, ensuring adherence to the new requirements and promoting a culture of responsible fund management.
The impending regulatory changes by the SEC underscore a pivotal moment in the landscape of private funds, particularly for private equity and hedge funds.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The Race for Ethereum Futures ETF Applications
News | Aug 8, 2023
Image: Unsplash/Jievani Weerasinghe
The race for Ethereum Futures ETF applications has intensified, with numerous high-profile firms submitting their applications to the U.S. Securities and Exchange Commission (SEC).
Here's a comprehensive overview of the current landscape:
1. ProShares
- Ether Strategy ETF: Filed on 07/27/2023, with an expected SEC response by 10/11/2023. The ETF aims to list on the CBOE BZX Exchange. The proposed ETF will invest up to 25% of its assets in cash-settled Ether futures contracts traded on the CFTC-regulated Chicago Mercantile Exchange (CME). It may also invest in reverse purchase agreements and shares of other investment companies but will not directly invest in Ethereum.
- Short Ether Strategy ETF and ProShares Ether Strategy ETF: Both ETFs aim to qualify as regulated investment companies. Their investment in corresponding subsidiaries based in the Cayman Islands will not exceed 25% of the total assets at each quarter end of the fiscal year.
See: SEC Rejects Bid to Turn the Largest Bitcoin Fund Into an ETF -> Grayscale Sues SEC
2. Bitwise
- Ethereum Strategy ETF: Filed on 08/01/2023, with an expected SEC response by 10/16/2023. The ETF plans to list on the NYSE Arca. The fund will not invest directly in ETH futures contracts. Instead, investments will be channeled through a wholly-owned subsidiary in the Cayman Islands. The fund seeks to achieve its investment objective primarily through its investment in ETH Futures Contracts, with the remaining 75% of assets expected to be invested in U.S. Treasuries and other U.S. government obligations.
3. Roundhill
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- Roundhill Ether Strategy ETF: The New York-based Roundhill Investments, with $662 million of assets under management across eight ETFs, plans to invest up to 25% of its assets in a wholly-owned subsidiary in the Cayman Islands.
4. VanEck
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- VanEck Ethereum Strategy ETF: The ETF may invest in equity securities of ETH-related companies if it faces constraints like position limits or liquidity issues. The ETF also expects to have significant holdings of cash and fixed-income investments.
5. Grayscale Investments
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- Grayscale Ethereum Futures ETF: The ETF is an actively-managed fund that seeks exposure to Ethereum futures contracts through a Cayman Islands-based subsidiary. The fund plans to hold approximately 100% of its net assets in Ethereum futures contracts but may also have significant holdings of cash and cash equivalent investments.
See: BlackRock’s Bitcoin ETF Filing Fuels Bullish Momentum for Grayscale Bitcoin Trust
6. Direxion
- Bitcoin Ether Strategy ETF: Direxion filed its application for a combined Bitcoin and Ether Futures Fund on 08/02/2023. The fund's shares would be issued and redeemed only in large blocks called "Creation Units," comprising 25,000 shares each.
7. Bitwise
- Bitcoin and Ether Market Weight ETF: The fund's strategy is to invest in either Bitcoin or Ether futures contracts, with the allocation based on the relative market capitalization between the two cryptocurrencies.
8. Proshares
- Bitcoin & Ether Strategy ETF Bitcoin: The fund seeks to qualify as a regulated investment company and expects to invest a portion of its assets in a wholly-owned subsidiary in the Cayman Islands.
See: Ninepoint Unveils Web3 Innovators Fund
The surge in applications indicates a growing interest and confidence in Ethereum futures among institutional investors. As the SEC reviews these applications, the crypto community eagerly awaits the potential approval and the subsequent impact on the Ethereum market.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Animoca Brands’ $30M Investment in Hi: NFTs and Web3 Meet Finance With Customized Debit Cards
Investment | Aug 4, 2023
Image: Hi
Metaverse gaming giant Animoca Brands has invested $30 million into the crypto 'Super App' hi, marking a significant collaboration that aims to amplify NFT utility in the financial industry, launch customized debit cards with Mastercard, and drive positive impact for the broader Web3 ecosystem.
Front Runners
- Animoca Brands: Best known for its popular Ethereum-based metaverse game The Sandbox, Animoca Brands is a front runner in the gaming and metaverse space. Its investment in hi signifies a strategic move to leverage its ecosystem's tokens such as SAND, EDU, APE, REVV, GMEE, and others through hi Debit Cards.
- Hi: As a web3 neobank, hi is emerging as a leader in the crypto space, with close to 3.5 million users. Its collaboration with Animoca and Mastercard, along with the development of the hi Protocol, positions it as a key player in the integration of web3 with traditional banking.
See: 10 Most Innovative Companies in 2023: Blockchain, Crypto, Metaverse, Web3
- Mastercard: By partnering with hi to customize credit cards with blue-chip NFTs, Mastercard is taking innovative steps in bridging the gap between traditional finance and the crypto world.
Amplifying NFT Utility in the Financial Industry
- Animoca Brands, a Metaverse gaming conglomerate, has invested $30 million in the financial app hi, aiming to enhance the NFT utility in the industry. This significant investment is a clear indication of the growing opportunities in the integration of NFTs with financial services. Animoca's established presence in Latin America could potentially open doors to new markets, further expanding the reach of hi's products and services.
- Hi made headlines by teaming up with Mastercard to launch debit cards customized with renowned NFT collections like CryptoPunks and Bored Apes. This world-first product is set to be shipped later this quarter, opening up new avenues for personalized financial products.
- The hi Protocol, a layer-2 solution for Ethereum, is being developed to provide a unique mechanism for authenticating humans, likened to a "Google login for Web3." This innovation aims to ease the transition between fiat and digital assets, making it more user-friendly.
Conclusion
- The collaboration between Animoca Brands, hi, and Mastercard is a testament to the burgeoning opportunities in the intersection of cards and web3.
See: Ninepoint Unveils Web3 Innovators Fund
- From customized debit cards to the development of unique authentication protocols, these front runners are paving the way for a more integrated and user-friendly crypto ecosystem.
- The $30 million investment by Animoca Brands into hi's Super App is a significant milestone that signals the growing confidence and potential in this space.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Harnessing Decentralized Finance to Combat Climate Change: A New Era of Sustainable Finance
Video | Jul 21, 2023
Image: Solid World website
In an era where climate change poses significant threats to our planet, innovative solutions are more crucial than ever. One such solution lies in the intersection of decentralized finance (DeFi) and climate change mitigation.
DeFi is revolutionizing approaches to climate change solutions, delving into innovative financial models that promote sustainability while creating new opportunities for investment in a greener future.
Stenver Jerkku, the CEO of Solid World, is at the forefront of this revolution. With a background in urban space and venture-backed tech businesses, Jerkku is now focused on building capital markets to solve climate financing. His current venture, Solid World, aims to tackle the significant issues in the carbon industry, particularly in the voluntary carbon market which is primarily driven by investor pressure to decarbonize portfolios.
Companies are encouraged to reduce their emissions, but to become entirely carbon neutral, they often resort to carbon credits in the voluntary carbon market. These credits involve paying someone else to reduce their emissions or sequester emissions out of the atmosphere.
However, the carbon market faces significant challenges. The current market structure is nontransparent and unstructured, making it difficult for companies and investors to navigate. This lack of transparency and standards is holding back capital and preventing the market from reaching its potential.
To address these issues, Solid World is working on creating standards and transparency in the market. They have developed a risk due diligence framework for evaluating projects and are planning to open-source their underwriting methodology. Additionally, Solid World is creating liquidity pools to structure and price different types of assets, making the market more accessible and understandable for investors.
Several other companies are also contributing to this regenerative finance world. For example:
- Toucan is working on making spot trading transparent
- SAS Global is using AI to predict climate disasters
- Open Forest Protocol is bringing real-time monitoring to nature restoration projects.
See: Alternative forms of capital will be key to develop sustainable economic systems
The intersection of DeFi and climate change presents a new era of sustainable finance. By harnessing the power of DeFi, we can tackle climate change more effectively, promoting sustainability and creating new opportunities for investment in a greener future. As companies like Solid World continue to innovate and push for transparency and standards in the carbon market, we move one step closer to a sustainable future.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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