🧵 Introducing R-Squared Labs: A groundbreaking layer-1 blockchain ecosystem revolutionizing real-world asset (RWA) integration and data sovereignty.
Built by a former Goldman Sachs market structure expert, here's why it matters
@RobRosenthalish Is it possible to get R2 on some of the listing sites for easy finding? @coingecko being the most important. Would you/the team be up for that? Would help immense trying to spread the word to regular folks.
Here’s why no one can compete w R-Squared on tokenizing assets for TradFi:
First, how do Wall Street bank trading desks make money?
Well - they buy things at a wholesale price, then sell them at a retail price. These things though require many hundreds of billions of dollars in balance sheet to acquire. And only other banks have that kind of cash - and therefore only other banks have the supply of those things.
So there’s a thing called an “Inter-dealer Broker” or IDB that sits between all the banks and acts as the market for these things. Now you might ask, why don’t the banks just call each other? Why? Bc they’d literally have to expose their own trading desires to their competitors who would then use that information to rip their faces off. This is a brutally competitive space. So the IDBs get-done the trades without exposing who was on either side of any trade.
So what else do the IDBs do? Well they guarantee that no one from the retail side will sneak into the market. Because if they did, there’d be no way for the banks, who’ve earned these wholesale markets by way of their balance sheets and super sophistication risk management, to make a two-way wholesale-to-retail market. And if they can’t do that, they’d stop trading and the market would die.
So this ecosystem, as clubby as it may seem, simply works.
So where does R-Squared fit in?
R-Squared is the only hardcoded L1 exchange where assets can be created with the flexibility of whitelisting trading participants (eg only the banks), blacklisting markets (eg so that banks can only trade one specific asset against another specific asset), and flexibility to have confidential transactions specific to the assets involved (so that banks can maintain their privileged view and not expose their intents). That’s on the wholesale side of things.
On the retail side of things, DEXs that sit on any other smart contract virtual machine, whether public or private, can be bridged to. Eg Solana or Ethereum or Polygon or a private chain somewhere, doesn’t matter. Wherever the retail
markets are, bridges can be made. And also there’s nothing preventing these assets from being listed on CEXs.
And something like this needed to have been made by someone trusted and experienced who knows what’s needed and was willing to do the heavy lifting to make it how it needed to be made, and who would and will be sensitive to all angles of concern and be sure to stfu whenever and wherever s-ing-tfu was and is required, regardless of how long required.
This is why we’ll win.