Theta Capital: Blockchain unlocks new business models

September 10, 2025

_{This interview was originally written in Dutch. This is an English translation.}

Is blockchain hype or a fundamental technological revolution? According to Ruud Smets, Managing Director and CIO of Theta Capital, blockchain will become the new internet architecture and offers numerous investment opportunities. Financial Investigator spoke with him.

By Esther Waal

What does the blockchain investment universe consist of?

'Blockchain technology makes two things possible that were previously impossible:

1) Digital scarcity

Blockchain protocols are internet protocols with “state”: at any given moment, it is clear who owns what in the network. The power of this technology is that it is possible without a central intermediary. Think of examples such as Bitcoin or NFTs.

2) Protocol businesses

The second major breakthrough is that we can now program business logic directly into the internet. This logic is executed in a “tamper-proof” manner, again without the need for a central party. Think of Ethereum or Solana.

Investors can invest in both categories. Until now, most of the attention has been focused on digital scarcity. After all, the first application of blockchain was Bitcoin: a digital currency with a maximum supply of 21 million units. NFTs are also well-known examples: unique digital objects such as art, collectibles or in-game assets.

These assets are non-productive. Their value derives from scarcity, uniqueness and history – just like gold, art or rare objects in the physical world.

Protocol businesses, on the other hand, are productive assets. They provide a service that users pay for and generate income. Yet this category has received much less attention to date, even though it is precisely here that the greatest economic potential lies.

A significant part of the global economy will shift to these protocols. Moreover, entirely new forms of economic activity will be unlocked.

Today, investors mainly see the first category – digital scarcity – and that is where most of the hype and noise is. But attention is slowly shifting to the second category, which is exactly where our focus lies. Because these networks are global, always available, open to everyone, and scale like software, they can create value at lightning speed. For investors, it is important that these networks require little external capital: the network effects are built in and the marginal costs for growth are virtually zero. That is why it is essential to invest early, ideally in the private phase, before networks go live.'

What are the overarching characteristics of blockchain applications?

'We see blockchain networks as the next big step in human coordination. Throughout history, there have been a few inventions that radically increased human cooperation: think of tribal systems, language, money, the printing press, the corporation, democratic institutions and the legal system. Each of these enabled cooperation on a larger scale.

Blockchain fits into this tradition – and takes coordination to an unprecedented level. With blockchain, people and even AI agents can enter into transactions with each other without friction, anywhere in the world.

The essence is that trust is built into the technology itself. There is no longer a need for an external party. Once that sinks in, many of our classic coordination structures – such as companies as intermediaries – will start to feel outdated.

With blockchain technology, we can literally programme business models into the internet. Whereas with the first generation of internet protocols, we put a website “online” that could be viewed by anyone, with the new generation of protocols, we put a company “onchain” that can be used by anyone in the world.

Blockchain applications are available worldwide from day one to anyone with an internet connection.

They run 24/7 without any loss of quality. They are open-source and completely transparent; anyone can check the code. This makes these networks much more robust than our current coordination structures. Anyone can also freely build on what already exists. The result is an explosion of services that are better, faster and more accessible than ever before.'

How disruptive is blockchain?

'Blockchain technology, together with AI, is the most disruptive technology of our time. It is no coincidence that the US recently appointed a Crypto & AI czar. Blockchain is changing the fundamental principle of a business model. If coordination can be achieved through protocols instead of through centralised companies, the middle layers disappear. Services become faster, cheaper and more accessible.

The big winner in this revolution is the end user, who gains access to a richer range of services, with lower costs, more control and virtually no friction.'

Can you give some examples?

'Stablecoins are a clear example of this. These are dollars on the internet. Anyone can send a stablecoin 24/7 for less than a penny. By comparison, the average international money transfer via existing infrastructure costs 6.5% and takes days.

Stablecoins are like email – but instead of sending information, we send value. And the big difference for investors is that you can invest in the underlying protocol. It's as if you could have invested in SMTP in 1982 and received a fee for every email sent.

Stablecoins have gained enormous traction. The annual transaction volume is over $15 trillion – more than Visa. And this is not speculation, but real adoption: wage payments, treasury management, global money flows.

With blockchain networks, you no longer need a bank to send dollars. More importantly, it's not just about replacing existing systems – it's about expanding the market. Billions of people without bank accounts can now access the dollar economy with just a smartphone.

There are also more complex services that operate completely autonomously – and compete directly with the largest companies.

• Uniswap is a decentralised exchange, pure code, that processes as much volume as Coinbase. Anyone can trade globally, at any time, via Uniswap. In total, more than $3 trillion in transactions have already been processed.
• Aave is an on-chain bank with $40 billion in assets. You can earn interest on your assets or take out a loan directly. Interest rates are determined by supply and demand. Banks are no longer necessary.

In the coming years, we will see a huge shift in economic activity towards these networks.'

What is still preventing large-scale adoption?

'There are two major barriers to the large-scale adoption of “protocol businesses”:

1) Technology

The technology is young. Bitcoin was launched in 2008 and smart contracts only in 2016. It is only since 2022–2024 that performance has reached the required level: where stablecoin transactions cost $5–10 a few years ago, they are now below $0.01. User-friendliness remains an issue, but we have now crossed the threshold to scalable applications.

2) Regulation

For years, the US worked against blockchain development – out of a lack of understanding and fear of disruption. Since the new president took office, that has changed: blockchain, together with AI, is now central to national technology policy.

Where entrepreneurs previously ran into brick walls, they are now being encouraged to build on-chain applications. This combination – mature technology and political stimulus – makes explosive growth of blockchain likely.

It is crucial for investors to understand this trend, both for managing existing portfolios and for exploiting new opportunities. But it requires a specialist approach. Of the 55 funds we work with, only two had existing venture capital activities. One of them is Andreessen Horowitz, which set up a specialised crypto division early on. But most traditional VCs? They missed the boat – and the gap is only getting wider.'