Saison Capital and Real World Asset Monetization in Crypto with Qin En Looi

Leong Chung Wei Bernard -

Fresh out of the studio, Qin En Looi, partner of Saison Capital, dives deep into the current developments and the future of Crypto and Web3 investments. He began with an overview of Saison Capital and its investment thesis. He shares how Saison Capital invests in the fintech and crypto space, and the current emergence of real-world asset (RWA) monetization, specifically in the tokenizing of physical assets on the chain. Last but not least, he shares what great would look like for Saison Capital.

"The one thing that has become quite clear in Asia, at least it's direct to retail - the government is not ready. The market is not ready. And there still needs to be a very high level of consumer protection. A lot more of a B2B-to-C approach. Where, let's say today's Web3 companies will need to partner up with existing licensed entities, whether they be licensed startups or even licensed institutions to provide their offerings to the retail. That's actually really good. Because it provides safeguards. We saw what happened last time when we didn't have those safeguards. So many retail investors lost money in FTX's spectacular blow-up, right? And that really hurt the space, that really hurt the trust, it really hurt the reputation of the space. So directionally it is inconvenient but necessary. For governments to I would say slow down or make access to retail a lot harder. Like in Singapore, we don't see any upcoming movements that crypto is going to be available to retail or easily available to retail anytime soon. We see the same in Hong Kong. The exception would of course be Dubai, but that's already more on the Middle East part, right? And then in the US, it's like a witch hunt. Basically, the long story short is it's still going to be very B2B2C driven, where the interface towards the masses, the retail, will still lie within licensed institutions." - Qin En Looi

Introduction

  • Looi Qin En, Partner at Saison Capital (Linkedin, @webthreedad)
  • How did you start your career?
  • What is the path that eventually brought you to become a venture capitalist?
  • From your career journey, what are the lessons you can share with my audience? 

Saison Capital and the next wave of Crypto and Web3 investments

  • Can you give an overview of Saison Capital and what is the current investment thesis of the firm?
  • Given that we are talking about crypto and web3 in today’s conversation, how do you define the concepts of web3 and real-world assets tokenization (RWA)? 
  • What is your strategy or approach towards investing in fintech startups that are leveraging Web 3.0 technologies?
  • What is a typical day for you as a VC?
  • What are the traits in founders and startup teams in the web3/crypto space that you index for when it comes to investing in them?
  • If I reverse the question, what are the red flags which will deter you from investing in them? 
  • How do you advise founders to think about the choice of different blockchains and the conundrum between decentralization, speed of transactions and scarcity?  
  • Could you share some case studies or any portfolio companies under you of successful RWA tokenization or blockchain integration in the financial sector and the key lessons learned from these implementations?
  • Could you elaborate on how Web 3.0's decentralized model significantly reduces operational costs in the financial industry compared to traditional finance systems?
  • What are the primary benefits and challenges of tokenizing real-world assets? How do you envision this impacting global financial markets in the long term?
  • Do you foresee any unforeseen challenges or hacks that will happen in the RWA market similar to what happened to the yield farming market in 2021 that crashed in 2022 with the Luna collapse?
  • What are the key technical and logistical challenges in integrating real-world assets into blockchain systems, and how can these be addressed?
  • In practical terms, how does the conversion of tangible assets into digital tokens enhance liquidity and facilitate fractional ownership? Could you provide an example of this in action?
  • With Asian governments and the private sector introducing new regulations for investor protection, what shifts are you observing in the industry's approach to Web 3.0 and RWA tokenization?
  • What is the one thing you know about RWA and web3 in Asia that very few people do? 
  • Can you discuss the gaps that currently exist in bridging traditional finance with Web 3.0 in Asia, and what solutions might be effective in addressing these gaps?
  • Where do you see the role of Web 3.0 in the financial industry in the next 5 to 10 years, especially in the context of RWA tokenization?
  • How do you think the decentralization aspect of Web 3.0 will reshape customer experiences and operational models in financial services?
  • What does great look like for Saison Capital in the crypto / web3 world? 

Closing

  • Any recommendations that have recently inspired you?
  • Qin En Looi's recommendation: Chris Dixon, "Read, Write, Own"
  • Where can my audience find you?

Podcast Information: Bernard Leong (@bernardleong, Linkedin) hosts and produces the show. Proper credits for the intro and end music: "Energetic Sports Drive" and the episode is mixed & edited in both video and audio format by G. Thomas Craig (@gthomascraig, LinkedIn).