What Crypto VCs Want Now | Aryan Sheikhalian

The conversation marks a pivotal transition from viewing digital assets as mere speculative instruments to treating blockchain as a foundational layer for financial services. By tokenizing equities directly on‑chain, issuers can offer real‑time dividend distribution, programmable governance, and frictionless cross‑border settlement. Coupled with zero‑knowledge proof‑based identity solutions, these mechanisms allow banks and fintechs to comply with AML/KYC requirements while preserving user privacy, effectively bridging the regulatory gap that has long hindered mass adoption.

Venture capitalists are recalibrating their theses to favor projects that deliver tangible infrastructure improvements. Sheikhalian notes a surge in funding toward decentralized physical infrastructure networks (DePIN), data marketplaces, and even tokenized GPU and energy assets—sectors that promise recurring revenue streams and real‑world utility. This focus reflects a broader industry move away from hype‑driven token launches toward sustainable business models that can generate measurable economic activity and attract institutional capital.

Regulatory dynamics are equally decisive. As jurisdictions tighten licensing requirements, crypto firms are increasingly seeking partnerships with licensed banks to access existing distribution channels. This collaborative approach not only mitigates compliance risk but also accelerates the rollout of novel financial products such as on‑chain derivatives and prediction markets. For founders, the message is clear: prioritize user value, embed robust compliance frameworks, and build interoperable infrastructure that can scale alongside traditional finance.