In this exclusive interview, ethdaily.net sits down with Vladislav Martynov, a seasoned high-tech entrepreneur and blockchain pioneer. From his early days co-founding a startup with Ethereum co-founder Vitalik Buterin’s parents, to his current role as a managing partner at BR Capital, Martynov shares his journey through the evolving world of blockchain and offers insights into its future.
CN: Can you briefly introduce yourself?
VM: I’m a high-tech entrepreneur who co-founded my first startup in the late ’90s with Dmitry and Maia Buterin, parents of Vitalik Buterin. We began selling an innovative Enterprise Resource Planning system. After exiting that venture, we pioneered one of the first SaaS-based CRM and membership management solutions in the early cloud era. My fascination with disruptive technologies grew, especially after Dmitry introduced me to Bitcoin in 2012 and later, in 2014, shared his son Vitalik’s vision for Ethereum — a decentralized, permissionless platform.
CN: Which led you to where?
VM: Soon after, I joined the Ethereum Foundation’s Advisory Board to promote blockchain education and developer growth, co-founding BlockGeeks and the Ethereum Competence Center. During the 2016–2017 ICO boom, I advised select startups — exploring tokenization and stablecoins — but most failed due to immature technology and markets. This inspired me to create BR Capital, a regulated fund focused on DeFi and Web3, where I now work as a managing partner to support startups and attract global capital with confidence and security.
CN: How does BR Capital operate? Is there a strategic vision behind the fund?
VM: At BR Capital, we blend VC insight with hands-on building — our algo-trading platform since 2017 is a testament to that. Newcomers, including traditional finance, bring interest, but navigating blockchain’s complex layers to reach the app stage demands experience. VCs with deep knowledge are key to deploying capital effectively.
CN: What about the current investment climate for blockchain startups?
VM: The investment climate for blockchain startups is more appealing now than in past cycles. Regulatory acceptance and institutional adoption are outpacing retail growth, shifting focus from infrastructure to practical Web3 applications like marketplaces, rewards, and privacy-enhanced social networks — opportunities absent in earlier cycles. Technology has matured, with advancements like Ethereum’s Layer 2 solutions easing the Web2-to-Web3 transition. Plus, younger generations find crypto intuitive, akin to touchscreens post-smartphones, while credit cards feel outdated. This mix makes the current cycle uniquely ripe for innovation.
CN: What advice would you give blockchain startups seeking funding in the current environment?
VM: Past cycles overemphasized technology over product. Now, founders must prioritize product, leveraging Web3 business models while nailing fundamentals: clear reasons to switch to Web3, strong product-market fit, solid UX, and sound financial management. Focus on delivering value, not just tech.
CN: Are there specific technologies or initiatives that you are currently looking at?
VM: Yes, several stand out. AI-enhanced security to proactively protect against cyber threats, bolstering resilience. Abstract Accounts that simplify Web3 access with secure, user-friendly digital identities. Zero Knowledge Proofs might enable privacy-preserving DEX-bank collaboration, fostering trusted data exchanges. I also support initiatives linking Web2 and Web3, like traditional institutions adopting crypto and DeFi, or Web3 apps enhancing Web2 UX with models like GameFi. Our investment in Pave Bank reflects this — its PaveNet layer integrates third-party services into a regulated banking environment, leveraging DeFi’s programmability for seamless money management.
CN: How do you think traditional financial institutions are adapting to DeFi, and what role will regulation play?
VM: Initial steps include offering crypto accounts, as Revolut has done successfully, though DeFi integration lags. Next, banks could use DEXs for low-cost swaps, staking (e.g., 4% yield), and lending (e.g., 10 %+), outpacing traditional interest rates, often zero on business accounts despite fees. Pave Bank and hopefully Revolut are eyeing this. Regulation will shape competitiveness: efficient, reward-focused banks will thrive; outdated, costly ones will falter.
CN: Do you envisage any collaborative opportunities between DeFi and TradFi?
VM: Banks could integrate DeFi services into crypto accounts, as noted in Q14. Traditional players might tokenize real-world assets (e.g., real estate, commodities) for DeFi protocols, enabling fractional ownership and trading on DEXs, diversifying investment options. Blockchain could also boost TradFi’s security and transparency—unlike centralized systems like ByBit, which falter during hacks, or traditional finance, frozen by events like Buffett’s sell-off or the 2008 crisis, DeFi and crypto remain resilient.
CN: How do you see the regulatory climate in the next cycle, particularly with respect to the new Trump administration’s stance towards crypto?
VM: Global regulators have resisted crypto, with only smaller nations exploring progressive laws, wary of U.S. dominance. Recently, both Biden and Trump shifted to pro-crypto stances, driven by young, tech-savvy voters (25-30) who prefer Web3 and find crypto intuitive. Traditional finance now sees blockchain as the future internet, unstoppable in adoption. Trump’s personal experience with censorship, bolstered by his blockchain-savvy family, fuels genuine intent to lead this revolution — unlike Biden’s political pivot. His team, including Department of Government Efficiency outsider Elon Musk and appointed crypto czar David Sacks, signals action on legislation like asset tokenization and DeFi integration. Coupled with the recent news of the Bitcoin Strategic Reserve and clarity on digital asset regulation, I expect a more supportive approach under Trump, unlikely to worsen from here.
CN: Lastly, how might policy changes impact the growth and adoption of blockchain technology in the U.S. and globally?
VM: As I mentioned, Radical perspectives for and against blockchain are softening and coming closer together, leading to better discussions about tokenisation, efficiency, and transparency of the financial system. I also think that as soon as the US increases the amount of the National Reserve in Bitcoins and creates a sizable stockpile of crypto assets, there will be a domino effect: other countries will follow in the same direction. Many countries from Latin America, the Middle East, Africa, and even Europe have been waiting for more specifics from the Trump administration and the SEC. Current price volatility in the markets is a short-term chaos. Inevitable given the sudden shift to very different policies in the US, with political meme coins, unclear policies on tariffs, revenge tariffs, etc. Time is needed for everything to settle down. Medium-term, I’m extremely bullish for late 2025, by which time we’ll have clearer policies and longer-term beyond that.