$KDA | Kadena News #3 🎙️

The Spaces features Kadena co-founder and CEO Stuart Popejoy hosting a wide-ranging discussion with Chris from Libera (Standard Chartered’s tokenization capability), after a quick rundown of ecosystem news: EVM testnet momentum, MetaMask Snaps support for native KDA, DefiLlama TVL reporting integration, expanding bounties and grants, and growing DevRel in Vietnam. The conversation focuses on where AI and blockchain truly converge—less on trading bots and more on verifiable data and decentralized identity (DID) and verifiable credentials (VCs) to counter fraud in an era of AI-amplified misinformation. Chris outlines emerging government and enterprise activity in DID/VCs across Asia, the likely need for federated models, and the strong fit with RWA tokenization to ease KYC friction and expand addressable markets. He urges rigorous RWA due diligence—understanding SPV structures, where ownership is legally recorded, and the value of trusteeship. On TradFi–DeFi convergence, he highlights stablecoin economics versus existing payment netting, tokenization’s mobility vs. liquidity, collateral management use cases, and growing institutional crypto allocations. The session closes with reflections on public vs. private chains, Kadena’s security-first design (Pact native multisig, scalability), and pointers to Kadena’s roadmap, EVM developer portal, and grants.

Kadena News x Spaces: Ecosystem Updates and Deep Dive on AI, DID/VC, and RWA with Chris

Participants and Roles

• Host: Stuart Poetry (CEO and co-founder of Kadena)
• Guest: Chris (executive at Libera, Standard Chartered’s tokenization capability)
• Noted Kadena leadership: CBO Annalise Osborne (referenced by the host for advisory board efforts)

Kadena Ecosystem Updates

• Mining accessibility and TVL
  • “KDA mining without the need for hardware” broadened access to mining and rewards.
  • The platform integrated into DefiLlama for TVL reporting, adding transparent TVL to the Kadena ecosystem.
• EVM Testnet momentum
  • Testnet continues to move quickly; announced integrations include Uniswap (DEX) and Morpho (lending), coming to Kadena EVM thanks to Oku.
  • Other announced projects: Via Labs, ReLand, DIA, Murky.
• Chestnut and partner traction
  • Chestnut launched at HCC in June with 70 partners and counting.
  • Engineering pushing toward Testnet v2.
• Core network stats and governance
  • Chainweb surpassed 6 million blocks in July.
  • TIP Council active; cross-project and cross-department members shaping future directions.
• Community and developer programs
  • Roadmap initiative focuses on more community feedback.
  • Community poll and plans to launch a Developer Advocate program to onboard and support new developers across Pact and EVM.
  • DevRel emphasis growing; team engaged developers at ETH Vietnam (workshop for EVM developers, grants amplification, local developer outreach). Vietnam cited as a top-10 blockchain dev region.
  • More bounties on WonderVerse for developer contributions to tools/infrastructure.
• Wallets and access
  • MetaMask Snaps launched: buy/sell/receive native KDA; supports the 20 Pact chains in production; usable with Kadena Cabinet.
  • Kadena’s native wallet “adopter” now supports MetaMask Snaps and Magic Wallet.
• Advisory board
  • Shout-out to CBO Annalise Osborne for strengthening Kadena’s advisory board; recent guests (e.g., Nitin) highlight the caliber of advisors.

Guest Background: Chris (Libera)

• Early career in banking and accounting; moved into innovation at UBS, focusing on blockchain and broader emerging tech (AI, privacy tech) and global BD/product roles.
• Helped spin up ventures; joined Finality (Fnality) International, positioned as a wholesale CBDC initiative in the UK.
• Returned to Singapore leading AI, blockchain, and crypto at KPMG.
• Joined Libera, Standard Chartered’s tokenization capability. Partnerships include:
  • FundBridge and Wellington Management: tokenized high-rated US Treasuries.
  • China AMC: one of APAC’s first retail money market funds in tokenized form.

AI x Blockchain: From "fight AI with AI" to Verifiable Data

• Framing the problem
  • Generative AI massively expands the volume of information, and with it, the scale and frequency of fraud, impersonation, and misinformation.
  • Instead of only “fighting AI with AI,” a more tractable path is enabling verifiable data that can be used and checked in decentralized contexts.
• Role of DID and VC
  • DID (Decentralized Identifiers) are W3C-standard identifiers enabling self-sovereign/digital identity; control is the key property (users/entities manage identifiers independently).
  • Verifiable Credentials (VCs) enable trusted, cryptographically verifiable attestations without centralized gatekeeping in each transaction.

DID/VC Adoption Landscape and Models

• Historical friction
  • DID/VC adoption has faced challenges (economics, heterogeneous interactions) for 5–10 years, leading to cycles of hype and dormancy.
• Renewed momentum via institutional issuers
  • Governments and banks revisiting DID/VCs, exploring governance where “recognized, reputable organizations” issue credentials that can be reused and verified across networks.
  • Subsidies by L1/L2 ecosystems or governments are helping bootstrap adoption.
• Regional activity (Asia)
  • Projects and pilots in Hong Kong, Singapore, and China on decentralized identity networks, establishing trusted nodes to issue reusable credentials.
• Federated model likely near-term
  • DID started idealistically; but to achieve network effects and practical utility, a federated approach is emerging as the pragmatic path until a tipping point is reached.

High-Value Use Cases for DID/VC

• Tokenized real-world assets (RWA)
  • Problem: KYC/eligibility requirements are friction for web3-native investors; onboarding can take 1–12 weeks or even months.
  • DID/VC solution: Preserve broad accessibility on-chain while managing eligibility/suitability through reusable, verifiable credentials.
  • Market impact: Anecdotal estimates suggest a 30–50% increase in addressable market for RWA if DID/VC achieves seamlessness; onboarding time could be reduced by 50–90%.
• Healthcare and sensitive records
  • Example: Singapore’s use of verifiable proofs (COVID-related) on-chain demonstrates how personal, sensitive data can be managed with strong verification and privacy controls.

RWA Risk: Legal Structure Over Pure Tech

• What you’re really buying
  • Many RWA tokens represent claims via an SPV (special purpose vehicle) domiciled in places like the Marshall Islands, BVI, Cayman, or Jersey.
  • Funds flow: money in → SPV acquires assets → tokens represent interests linked to the SPV. The key question: where is the register of ownership maintained?
    • On-chain, within the SPV, or at the fund/trustee level?
    • Are you formally recognized in the legal record of owners with clear recourse?
• Trustee vs SPV-only
  • Trustee structures can provide stronger investor protection: independent oversight and control separation; the manager cannot move assets without oversight.
• Red flags replicating 2008-style risks
  • Beware depository receipt-like wrappers branded as “deprecated/static equities” or with “phantom yields.” If the structure sounds too clever or too good to be true, it likely is.
  • Some high-profile issuers have publicly stated that certain tokenized “equities” confer no actual rights, underscoring the need for due diligence.
• Practical due diligence checklist for RWA buyers
  • Legal/governance: Where is the official ledger of ownership? What are the recourse mechanisms?
  • Custody/oversight: Is there a trustee? What controls prevent unilateral asset movement?
  • Regulatory posture: What licenses exist, and in which jurisdictions?
  • Track record: Who operates it? Any history of gray-area behavior?
  • On-chain transparency: Transaction analytics, proof-of-reserves, and monitoring if engaging via DeFi-like wrappers.

DeFi–TradFi Convergence: What’s Real vs Hype

• Don’t reinvent the wheel
  • Many web3 constructs map to web2/TradFi analogues. Best practice: borrow proven structures where applicable and focus innovation where it adds clear value.
• How banks are approaching blockchain
  • Redefining money
    • CBDCs, tokenized deposits, stablecoins are the three main tracks.
    • Caution on stablecoin economics (domestic): systems like CHIPS achieve massive netting efficiencies (e.g., for every $26 settled in CHIPS, only $1 moves in the banking system). Fully backed stablecoin transfers lack this netting advantage, often making them more costly in domestic contexts.
    • That said, stablecoins can still shine in cross-border corridors underserved by banks; fees in traditional rails can be prohibitive.
  • Asset redesign and collateral management
    • High institutional interest in compressing margins and increasing collateral velocity.
    • Tokenization boosts asset mobility/access but does not, by itself, create liquidity; demand and supply must both exist. DID/VC can expand participation and help on the demand side.
  • Treasury and crypto allocation
    • While BTC/ETH dominate now, expect diversification over the next 6–12 months into broader crypto assets aligned with robust communities and clear utility (e.g., L1 ecosystems like Kadena).
• Digital handshakes
  • The pivotal integration points where DID/VCs tie into workflows. Properly identifying and instrumenting these handshakes is essential for compliant, scalable operations.

Public vs Private Chains for Enterprise/Government

• Current split and the internet vs intranet analogy
  • Governments remain roughly split between public and private preferences; many are wary of public chains.
  • Framing: build on the internet (public) or the intranet (private)? Expect patterns similar to open-source vs enterprise software.
• Likely trajectory
  • Innovation continues to flower on public chains (e.g., AMMs, flash loans), while enterprises adapt or partner to bring robustness, privacy, and compliance.
  • Zero-knowledge and privacy tech will be central to making public chains enterprise-acceptable.

Fraud Perception and Transparency

• Spotlight effect in crypto
  • The perception of more scams in crypto is amplified by transparency; issues become visible quickly and publicly.
  • Relative to TradFi, crypto’s transparency can be a net positive for market integrity and oversight.

Kadena-Specific Lens and Enterprise Readiness

• Security and resilience priorities
  • Pact’s native multisig is designed to meet enterprise-grade security needs on public chains.
  • Availability/scale are existential for business risk; unpredictable fees or congestion can break markets.
  • The current Ethereum + L2 landscape presents challenges for mission-critical, high-liquidity products; Kadena aims to make public chains safe for enterprise use.
• Strategic focus
  • Integrating DID/VC and ZK privacy into enterprise-grade public-chain infrastructure, while nurturing EVM compatibility and developer growth (testnet, grants, DevRel).

Actionable Takeaways

• For investors exploring RWA
  • Demand legal clarity: know where ownership is recorded and what rights you actually hold.
  • Prefer trustee-oversight structures to SPV-only custody.
  • Verify licenses, jurisdictions, and operator track records.
  • Use on-chain analytics and proof-of-reserves when engaging via DeFi wrappers.
  • Be wary of exotic wrappers promising “phantom yields” or using opaque terminology.
• For builders
  • Lean on proven TradFi structures; innovate at the “digital handshake” with DID/VCs.
  • Focus on collateral management efficiency and clear liquidity paths; tokenization alone doesn’t create demand.
  • Design with enterprise-grade security, privacy (ZK), and availability in mind if targeting regulated markets.
• For policymakers and enterprises
  • Evaluate public vs private deployment via the internet/intranet frame.
  • Engage with federated DID/VC networks; consider issuer roles and standards that maximize reuse and verification across ecosystems.

Resources and Next Steps

• Kadena roadmap: cadena.io/roadmap (2025 roadmap)
• EVM developer portal: evm.cadena.io
• Grants: cadena.io/grants ($50M program)
• Community: Twitter, Telegram, and Discord (support for DevRel, wallets, buying KDA)
• Wallet access: MetaMask Snaps (buy/sell/receive native KDA, Pact chain support), Kadena Cabinet integration; native wallet “adopter” supports MetaMask Snaps and Magic Wallet.

Closing

• Chris underscores that increased transparency makes crypto issues more visible but also empowers better risk assessment. Expect enterprise adoption to follow an open-source vs enterprise software pattern, with public chain innovations adapted into robust, compliant deployments. Kadena’s focus on security (e.g., native multisig), scalability, DID/VC, and ZK aligns with making public chains enterprise-ready, while the EVM testnet and grants aim to accelerate developer momentum.