Investing in Universal
Over the last few years, performant L1s and Ethereum L2s have transformed onchain activity and created new opportunities for broader DeFi adoption, such as near-instant transactions and improved UX. But many of the largest cryptoassets aren’t easily tradeable on crypto rails or are siloed to just one blockchain. These assets are much harder to access and integrate into DeFi protocols.
As a result, users have had to rely on bridging solutions, multiple wallets, or centralized exchanges. This friction creates capital inefficiency and frustration, but even more importantly, it makes it harder for unsophisticated users to enter DeFi and hinders innovation by reducing DeFi’s composability. In order for crypto to play a larger role in global finance, we need a way to bring any asset onto any chain in an inexpensive, verifiable, and composable way.
That’s why we are thrilled to announce our lead investment in Universal (formerly Alongside), which is building a protocol to make all cryptoassets available on all chains. With Universal’s wrapped tokens, you can trade, borrow, lend, or stake any asset from your preferred wallet on any chain. Think of Universal as a “Circle for cryptoassets.”: you request a wrapped version of your preferred asset on your preferred chain, and, once verified in reserves, it’s minted 1:1 on the destination chain.
Universal has started by launching on Base with integrations into DeFi protocols Aerodrome and Morpho, allowing DeFi borrowers to use popular assets from non-smart contract L1s as collateral for lending on Base.
We’ve known Universal’s cofounders Austin, Gauthier, and Jun for over two years since we led their seed round. Not only are they brilliant, but they have an exceptional ability to translate ambitious ideas into real working products. Their combination of crypto knowledge and operational excellence is what we need to help unlock crypto’s full potential.
We’re excited to continue supporting Austin, Gaut, Jun, and the Universal team.
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