1 trillion dollars

Good morning. Today we've got coverage on Russia's crypto policy, a fast food DAO concept, huge news from the world's largest asset manager, and more!

Bonus Content Coming Soon: I'm close to having my notes out from Messari's Crypto Theses for 2022. I'll include a link to my notes in this newsletter, however, the full report is definitely worth a read. The report is now in podcast form and can be found here.

Market Update (as of 8:03am ET):

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Top 5:

1. Russia moves to recognize crypto as a form of currency. Draft legislation to classify crypto as an "analogue of currency" will be completed no later than Feb. 18th according to reports from Russian news outlet, Kommersant. Identity checks conducted through the country's banking system will be required to transact in cryptocurrencies along with other reporting requirements for larger operations. It's a major geopolitical move that could create a domino effect that results in other countries adopting similar policies. Pomp goes into further detail on the move in his post below.

SSS (sat-sized summary): And just like that, Russia will now consider crypto as currency. The move could trigger adoption of similar policies by other countries who don't want to fall behind on the global stage.

2. BlackRock plans to offer crypto trading to clients. The world's largest asset manager ($10 trillion AUM) plans to offer their clients crypto trading support and eventually access to a credit facility which would allow borrowing against crypto collateral. One source indicated that BlackRock's Aladdin platform, an end-to-end portfolio management system, would allow clients to trade crypto directly on the tool. No timeline for when these crypto services will be available has been made public.

SSS: Institutional investors are already in the crypto space, but BlackRock providing clients with direct access to crypto trading makes access for other investors like public pensions, endowments and sovereign wealth funds much easier.

3. What is FriesDAO? Is it a DAO focused on acquiring french fries (#WAGBFF)? Well, in a way it is. The DAO is raising funds to "acquire and operate fast food restaurant brands," and to give the "crypto community the chance to participate in community-governed restaurant franchises." It all sounds like a terrible idea to me, but what do I know? The DAO's raised $4.5 million and has an eye on Subway, Burger King, Popeye's, and Domino's franchises as their top targets. After the purchase, which is expected to occur in the next 3 to 4 months, the restaurant will have control over its profits (if there are any), but can be "influenced" by DAO governance to improve operations or expand to other locations. If you'd like to get involved or speculate wildly on the governance token ($FRIES), check out their page here.

SSS: DAOs are experimenting in everything now. The latest FriesDAO is attempting to purchases a fast food franchise, but post-purchase will allow the restaurant to operate on its own rather than be governed by the DAO. To me it just seems like a way to get investment exposure to a certain type of business in a certain location rather than a revolutionary change for the restaurant industry.

4. El Salvador plans to issue first bitcoin bond next month. The billion dollar bond is expected to be oversubscribed by about ~$500 million according to the country's finance minister and will be issued on Blockstream’s Liquid Network sidechain. Many in the crypto community are excited about the project, but there is skepticism in the halls of traditional finance. Example #1 - the IMF is in talks with El Salvador to provide them with a $1.3 billion loan, but has balked over the country's issuance of the bitcoin bond. El Salvador plans to use 50% of the funds to purchase bitcoin and invest the other 50% in energy infrastructure and mining.

SSS: In a first of its kind bond issuance, El Salvador will be issuing the so-called "bitcoin bond" to fund purchases of bitcoin and invest in their country's infrastructure. It's a high risk, high reward bet on crypto that may not be the most responsible way to run a country, but it has garnered attention for the country as a crypto-forward innovator.

5. Salesforce tells employees it’s working on NFT cloud service. The service would be a competitor to OpenSea and offer content creation capabilities for users. While NFTs have been most popular as art and collectible over the past year, Salesforce sees an opportunity for companies to expand NFTs beyond that market. Mathew Sweezey, director of market strategy at Salesforce thinks that for NFTs "to unlock their full potential, brands are going to have to start creating utility via the token." It's already happening on a small scale (think Coachella NFTs for lifetime festival access), but Salesforce would help popularize use cases for a wider base of companies and users.

SSS: Enterprise software companies are moving into the NFT game and I think Salesforce has a really forward-looking view. They believe that the growth of the NFT market in the future will come from the utility or access that NFTs provide rather than purely as a collectible item.

Updates and other stories:
- Caitlin Long's crypto bank takes a step toward Fed membership...Read More
- Gucci buys land in The Sandbox to create metaverse experiences...Read More
- Bitcoin mining infra firm Compute North raises $385 million...Read More

Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN

External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.