Logan Jastremski: Crypto is the Next Phase of Fintech
Venture capitalist Logan Jastremski revises his fund's early judgment: high throughput can only explain about half the story, while the other half is monetization, which clearly falls on the order flow and execution layer of traditional finance. He believes that the global capital market's migration to the internet track is still less than 1% complete, with on-chain supporting only about 1 basis point of spread; the next step is asset onboarding, followed by scaling up.
The frictionless premise is that throughput generates unprecedented use cases. He admits that the use case is only half correct; those who can make money are the ones who capture order placement and execution. Blockchain and traditional finance were previously parallel but are now merging; the next step is to export the U.S. capital market like exporting dollars. The fund claims to be actively allocating towards global tokenization.
He has long bet on high-throughput public chains and on-chain exchanges, believing that modular Layer 2 is not the main battlefield for revenue, as delays and data center locations determine whether price discovery can be globalized. In public discussions, he used Solana applications as a sample that quickly reached about $100 million in revenue, while Hyperliquid was used as a contrast for order book and listing democratization. Monthly trading volume of tokenized stocks has been reported by industry data at around $3.4 billion, with a significant amount occurring during traditional market closures.
A 1 basis point spread means market making can shift from "subsidizing liquidity" to "earning spreads like securities trading." If assets remain off-chain, high throughput is just a waste of resources. Dollar stablecoins first send settlement currencies overseas, while securities and fund tokens need to export trading hours and custody rules. In a regulatory vacuum, whether value will fall on equity or tokens remains an unlegislated variable.
The market mechanism is the migration of order flow. Buyers want 24-hour trading and narrower spreads in global accounts, while sellers need to provide both throughput and compliant entry points through chains and brokerage stacks. Event-driven changes come from fund managers changing their stance and writing tokenization into their investment themes. Beneficiaries are on-chain order books that can now earn execution fees, while those under pressure are public chains that only talk about throughput without discussing fees. Funds are shifting from protocol tokens to equity or revenue-sharing infrastructure that can charge for order flow.
Source: Public Information
ABAB AI Insight
Jastremski, after leaving Tesla, considers delays and throughput as first principles; the name Frictionless signifies reducing friction. The high-throughput competition from 2024 to 2025 proves trading capability, while the corrections in 2026 prove the ability to charge fees. A basis point is the language of traditional market makers, not that of yield farming. Describing crypto as an evolution of fintech is an active abandonment of the metaverse and gaming sidechains as the main narrative, narrowing the fund's focus to capital market pipelines.
The capital path is to first build the track, then import assets, and finally collect tolls. Stablecoins export dollar liabilities, while tokenization exports U.S. trading hours and settlement practices. The fund's current "open private messages" is not seeking another faster chain, but a team capable of bringing stocks, commodities, and funds on board and completing executions. Money follows order flow, not the number of trades per second.
This is analogous to electronic communication networks consuming exchange floor trading, Alipay consuming cash, and depositary receipts exporting U.S. stocks. Crypto is in the stage of merging from a parallel universe into fintech: the speculative track remains, but the revenue track has shifted towards execution.
The structural change is the transfer of pricing power. Throughput is no longer priced separately; spreads and asset types begin to be priced. The mechanism is: without assets, there is no real spread; without spreads, there is no sustainable market making; once the track can support 1 basis point, traditional weekend closures become shareable. Whoever owns the order flow owns this merged fintech.
ABAB News · Law of Cognition
- Throughput can open the market, but charging fees can prove the market is real.
- When two financial systems merge, the winner is the order flow, not the slogans.
- The dollar goes overseas first, and the capital market will follow on the same track.