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Interview with Plume Founders by Blockbeats
October 30, 2024

Part 1 Backed by Industry Giants, Why Has Plume Captured Investor Interest?

Please introduce yourself and share what motivated you to enter the crypto industry

My name is Teddy, and I’m a co-founder and Chief Business Officer at Plume, where I lead our efforts in operations, business development, and go-to-market strategy. I graduated from UC Berkeley with a degree in Business and began my career in traditional finance, working in Investment Banking M&A. From there, I joined Coinbase, focusing on Corporate Development and Ventures, and later served as Head of Business Development at a DeFi protocol before joining Binance (BNB Chain) on the business development and ecosystem team.My initial exposure to crypto came in late 2017 during the altcoin boom, which sparked my fascination with financial autonomy and blockchain’s potential to reshape traditional finance. DeFi Summer of 2020 made me realize the transformative potential for blockchain-based finance, which led me to formally make the leap in 2021 with Coinbase’s Corporate Development and Ventures team, a role that immersed me in the fast-evolving crypto landscape and laid the foundation for my work today.

You have previously worked at Coinbase and Binance, two of the world’s leading cryptocurrency exchanges. How would you describe the unique qualities in style and operations of each company? How have these professional experiences shaped your current entrepreneurial journey?

At Coinbase, I had the exciting opportunity to work on early-stage investments and strategic acquisitions, which provided a broad view of the rapidly evolving crypto landscape. My focus on RWAs became a personal interest, allowing me to explore their market dynamics and what’s required to support them from an infrastructure perspective — covering everything from private credit and stablecoins to custody solutions.

I loved connecting with early-stage founders, hearing their vision, and gaining firsthand operational insights into their challenges and goals. One of the best parts was meeting amazing colleagues like Johanna, who’s now our VP of growth at Plume. We worked closely together at Coinbase on some high profile several M&A and venture deals.

My time at Binance was a different but equally rewarding chapter. Transitioning to the business development and ecosystem team on BNB Chain, I was able to dive deeply into supporting real world asset tokenization projects. Binance’s high-speed environment offered a unique view into the vast demand of RWA projects for support with tokenization, ecosystem go-to-market strategies, and liquidity are essential core pillars for scaling RWAs.

Each interaction and insight reinforced what I’d been observing: a clear need for a dedicated space for RWA innovation. This experience was fundamental in shaping the vision for Plume, built as a chain purposefully designed to drive growth and opportunity in the RWA space.

Apart from yourself, Plume Network’s team includes co-founder Chris and Eugene, who brings years of product experience and investment expertise, along with team members from Robinhood, dYdX, LayerZero, JPMorgan, Polyhedra, and Galaxy Digital. Given this robust background in the crypto and financial sectors, how does the Plume team leverage these experiences to build advantages in security, regulatory compliance, and user trust?

Chris, one of Plume’s co-founders, has expertise in designing and handling products for the RWAfi ecosystem, meeting complex compliance needs. Eugene, another key team member, played a foundational role in building Robinhood Crypto’s trading infrastructure and was a principal architect in dYdX’s transition to its own chain.

Additionally, we have team members from LayerZero and Polyhedra add significant value in RWAfi asset interoperability, and subject matter experts from JPMorgan and Galaxy Digital brings an in-depth understanding of traditional finance requirements, supporting compliance and trust-building measures that underpin the Plume platform’s security and reliability.

In May of this year, Plume Network raised a $10 million seed round led by Haun Ventures, which focuses heavily on crypto infrastructure services, with additional participation from Galaxy and Superscrypt. What does this investment signify for Plume Network?

This investment is a major validation for Plume Network, as it involves backing from top-tier US institutional investors like Haun Ventures, Galaxy, and Superscrypt and tier 1 investors. From our perspective, the RWA market will see extreme growth, with institutions continuously pouring more dollars into the space and tokenizing their own respective money market funds.

What excites me most is that these investors genuinely believe in our vision for RWAfi and trust in our team’s background. We’ve built a reputation for executing effectively, and this support only reinforces that we’re heading in the right direction.

Their involvement signals confidence in the potential of the RWAfi market and Plume’s innovative approach to this space. It reflects a shared belief in the Plume team’s ability to execute on its vision of creating a vibrant ecosystem for real world assets on blockchain.

Part 2: Just Like Pokémon Cards with High Leverage, Plume’s Blueprint for RWAs

Plume Network introduced the concept of RWAfi, aiming to design a more native RWA product for crypto users. Could you explain the motivation behind this idea and Plume Network’s key strategies for achieving this goal?

The concept of RWAfi, Real World Asset Finance, came from our recognition that traditional RWA solutions often prioritize institutional needs, with tools and structures that are less accessible or adaptable to retail crypto users. This is a critical gap we identified early on: bridging the crypto-native community with real-world assets in a way that’s modular, flexible, and geared toward DeFi.

With traditional RWA, the aim is generally institutional onboarding, where assets like real estate, bonds, or private equity are brought on-chain for sophisticated investors and large capital providers. But RWAfi is designed for the crypto retail user — for those who want not only to tokenize assets but also to engage with them directly in the DeFi ecosystem. Here, tokenized assets are held passively and are brought to life through DeFi primitives like lending, liquid staking, and yield generation.

One of our strategies is to focus on building modular tools that simplify tokenization. We want to make it as easy as possible for users and developers to bring assets on-chain without getting bogged down in regulatory or operational complexities. Our RWAfi toolkit includes modularized DeFi capabilities, such as RWA lending, liquid staking, and liquidity pools, that make it easy for users to actively manage and earn on their assets within Plume’s ecosystem.

Plume Network’s goal is to make RWA more attractive to crypto-native users. How does Plume decide which real world assets are suitable for tokenization? Which types of real returns and practical use cases do you believe are most appealing to crypto users? Could you share some specific applications that are either live or in development, along with the expected return structures of these assets?

We focus on assets that align with the interests and habits of crypto-native users. by bringing tokenized assets that offer either stable yields or speculative potential onchain. We decide on asset suitability based on several factors, such as long-term income stability, speculative opportunities, and collectibles with onchain cultural relevance.

We categorize these assets primarily into three groups:

  • Stable Income Assets
    These are assets that offer consistent, high yields, which we believe are very attractive to crypto users who want stable, predictable returns. We have partners like Credbull, Projective, and Mineral Vault, each designed for long-term investors. These assets generate steady income by tokenizing things like private credit, solar energy and minerals, with return structures offering annual yields in the 7–15% range.
  • Speculative Assets
    These assets attract users who are more interested in price fluctuations or trend-based opportunities. For example, Cultured provides real-time data feeds for trading on events like sports and economic indicators. These assets are particularly appealing to users who want to engage in on-chain speculation based on real-world data, allowing for shorter-term, potentially high-yield returns tied to market events.
  • Collectibles that Builds On-Chain Culture
    Collectibles are ideal for crypto-native users who value unique, culturally relevant assets that blend digital identity with real-world assets. With Kixmafia, for example, we’re bringing rare, tokenized sneakers on-chain, allowing collectors to showcase their portfolios and interact with others who value these items. These types of assets may not have high yields but bring a social and cultural return to users that’s uniquely appealing to crypto-native collectors.

On the Plume Network platform, RWA assets can be borrowed, lent, and traded in a similar manner to crypto assets. Could you provide details on how this liquidity is achieved on your platform and what new experiences this offers to users?

Plume, with RWAfi, combines the stability and value of RWAs with the liquidity and accessibility of DeFi. This combination allows us to unlock liquidity across a wide range of RWA by enabling them to be used as collateral, liquid staking assets, compound yield assets, and even as tradable assets on perpetual DEXs.

Here’s how we build the liquidity on Plume:

  • Collateral Assets
    We make it possible for users to use tokenized RWAs, like real estate or private credit, as collateral to borrow stablecoins or other crypto assets. This process mirrors how traditional crypto lending platforms work but brings in more stable, less volatile assets as collateral, which in turn lowers risk for lenders and provides borrowers with more security.
  • Liquid Staking
    Similar to liquid staking in crypto, where users can stake assets and still use a tokenized version of them for other DeFi activities, we apply this to RWAs. For instance, a user could stake their tokenized real estate asset and receive a liquid staking token in return. This token can then be used in other yield-bearing protocols, maximizing utility and increasing the potential for compound yields.
  • Compound Yield Assets
    On Plume, assets like private credit or infrastructure investments are structured to yield consistent returns. Users can access these returns directly or reinvest them across various DeFi applications on the network, compounding their yields and allowing their capital to work for them across multiple layers of the ecosystem.
  • Perpetual DEX Trading Assets
    For users interested in speculation and trading, we enable RWAs to be listed on perpetual DEXs within Plume’s ecosystem. This opens up trading opportunities, where users can long or short tokenized assets like real estate or commodities, combining traditional finance with DeFi’s speculative appeal.

Part 3: Building a Trusted Ecosystem — Plume’s Security Assurances and Future Plans

Does Plume Network have key global partnerships or technical support? How does Plume collaborate with other blockchains and crypto projects to enhance the liquidity and adaptability of RWAfi?

We’re building a strong foundation of strategic partnerships to drive the adoption and adaptability of RWAfi. These partnerships cover a range of support areas, from technical enhancements to liquidity expansion, and aligning with our vision to make RWA more accessible and liquid.

We have some key collaborations, and they include:

  • RWA AI PoC (Proof of Concept)
    We are working on a Proof of Concept in AI-driven RWA analysis, which is an experimental initiative. This collaboration focuses on enhancing RWA decision-making and tokenization by integrating AI capabilities. Through data insights, we can better understand which assets to tokenize, align them with user interests, and further enhance their liquidity on the Plume platform.
  • Zero-Knowledge Proof of Reserves (ZK PoR)
    In collaboration with ZK projects, we’re implementing ZK PoR, which allows us to prove the backing of assets without revealing sensitive information. This is crucial in bridging trust between on-chain assets and off-chain realities, particularly for institutional partners and investors who need high transparency.
  • Arbitrum
    Our partnership with Arbitrum focuses on providing Plume’s RWA tokens with cross-chain capabilities, leveraging their Layer 2 scaling solutions. This integration enhances our liquidity by enabling seamless interaction and accessibility across both networks, thereby broadening the reach of RWAfi.
  • Celestia
    Celestia provides Plume with modular Data Availability (DA) support, optimizing how we handle on-chain data for RWA transactions. With Celestia’s DA, we can ensure faster and more cost-effective transactions, which is especially valuable for real-time data-driven RWA assets like commodities and equities.
  • LayerZero
    LayerZero’s cross-chain messaging protocol allows Plume’s RWA assets to be transferred seamlessly across different blockchain networks, enhancing interoperability and liquidity for token holders. By enabling cross-chain liquidity, LayerZero’s integration supports the expansion of our RWAfi ecosystem to a broader set of users and projects.

During the development of RWAfi, how does Plume Network ensure that the platform and projects remain compliant with global regulatory requirements? How do you view the impact of future global crypto compliance trends on Plume Network? Are there any specific designs or safeguards implemented by Plume Network to ensure the authenticity of on-chain assets and to mitigate fraud risks?

We’ve designed the platform with a robust compliance framework that integrates various regulatory safeguards while providing flexibility for applications and users.

  • Modular Compliance, AML and KYC Solutions
    Plume’s approach to compliance is modular and permissionless, allowing KYC and AML to be implemented at the application level. This means each RWA application can configure its own compliance checks based on its jurisdiction and regulatory requirements. Plume also have AML protocols embedded within the ecosystem to monitor and flag potentially illicit activity, leveraging partnerships with blockchain analytics providers. This ensures that the platform remains safe and compliant with AML regulations worldwide.
  • Broker/Dealer and Transfer Agents
    Plume collaborates with regulated broker/dealers and transfer agents, especially in the United States, where these entities are necessary for compliant issuance and secondary trading of security tokens. This ensures that any asset classified as a security can be offered in a compliant manner.
  • Zero-Knowledge Proof of Reserve (ZK PoR)
    We employ ZK PoR to verify asset backing without disclosing sensitive data. This builds trust and transparency, allowing users to verify that assets are fully backed while preserving privacy.
  • Global Compliance Readiness (Reg A, D, S)
    Plume Network has adopted design principles compatible with various securities exemptions, such as Regulation A, D, and S, which address offerings within and outside the United States. By being compatible with these frameworks, Plume is positioned to accommodate both retail and institutional investors in multiple jurisdictions.

Currently, Plume Network supports hundreds of protocols, millions of active wallets, and hundreds of millions of transactions. How was this expansive ecosystem built? How does Plume Network maintain platform stability and user trust amid rapid growth?

Plume Network has developed its ecosystem by acting as a distribution hub for builders and applications, making it easy for projects across sectors to launch and grow on our chain. Our business development strategy is crucial here. We’re organized into specialized teams covering protocols, DeFi, RWA, capital, and partnerships. Each team has a clear focus, which helps support many projects.

For retail users, our RWAfi ecosystem is designed to feel intuitive and would deliver real yields. We ensure that DeFi on Plume is accessible and easy to understand, which drives higher retail user engagement and trust in onchain, real-world asset investments.

What critical changes do you foresee in the future of the RWA market? What role does Plume Network aim to play in these changes?

The future of the RWA market is set for huge growth, with RWA expected to become a primary player in the near term. Crypto users are increasingly looking beyond “point finance” for more tangible and uncorrelated yields, and RWAs deliver yields backed by actual assets, offering diversification that resonates well with investors tired of high-risk, high-volatility tokens.

As institutional players tokenize money market funds (MMFs), we’ll likely see market momentum grow, driving more interest and legitimacy for RWAs. The composability of RWAs will be critical here, allowing new DeFi use cases and trading opportunities within the RWA space. Plume aims to lead in this by enabling RWAs to interact seamlessly with DeFi applications, creating a modular and composable ecosystem where both retail and institutional users can access real, asset-backed yields and new financial products.

What are Plume Network’s upcoming development plans? Could you share any major milestones or events that we can look forward to?

We’re launching our pre-staking campaign on October 31, allowing early participants to get involved before our mainnet goes live later this year.

On the product side, we’re rolling out several key features: the Data Highway for seamless, reliable data flow on-chain, Smart Wallets with native account abstraction, and Plume Arc to simplify RWA tokenization. Additionally, we’re developing a zero-knowledge proof of reserve, which will ensure transparent asset backing across the network. These developments underscore our commitment to building a secure, composable ecosystem where RWAs thrive in a crypto-native environment.

About Plume Network

Plume is the first fully integrated and modular chain focused on RWAfi. We’ve built the first modular and composable RWA-focused EVM-compatible chain designed to simplify onboarding for all types of assets and streamline capital onboarding through native infrastructure and RWAfi-specific features unified chain-wide. For the first time, we are enabling a composable ecosystem of defi built around RWAfis with an integrated end-to-end tokenization engine and a network of financial infrastructure partners for builders to plug and play. We have 165+ projects building on our private devnet today, with everything from private credit to equities, collectibles, and more.

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