In this exclusive discussion, we connect with Vladislav Martynov, an experienced high-tech entrepreneur and blockchain innovator. From his initial partnership in a startup with the parents of Ethereum co-founder Vitalik Buterin to his current position as managing partner at BR Capital, Martynov reflects on his experiences navigating the dynamic landscape of blockchain technology and shares his insights on its future potential.
Interviewer: Could you introduce yourself briefly?
Martynov: I’m a high-tech entrepreneur, having co-founded my first startup in the late ’90s with Dmitry and Maia Buterin, Vitalik Buterin’s parents. We started by selling a cutting-edge Enterprise Resource Planning system. After exiting that venture, we were among the pioneers of one of the first SaaS-based customer relationship management and membership management solutions during the early cloud computing era. My excitement for disruptive technologies was further ignited when Dmitry introduced me to Bitcoin in 2012, and in 2014, he shared his son Vitalik’s concept for Ethereum — a decentralized, permissionless platform.
Interviewer: How did that lead to your current focus?
Martynov: Shortly thereafter, I became a member of the Advisory Board at the Ethereum Foundation to foster blockchain education and development. I co-founded BlockGeeks and the Ethereum Competence Center. During the ICO boom of 2016-2017, I advised various startups focused on tokenization and stablecoins, although many challenges led to their failure due to the nascent technology and market landscape. This propelled me to establish BR Capital, a regulated fund centered on DeFi and Web3, where I currently serve as managing partner to empower startups and attract global investments with confidence and security.
Interviewer: How does BR Capital function? Is there a strategic vision for the fund?
Martynov: At BR Capital, we combine venture capital expertise with active involvement in building projects — our algo-trading platform, established in 2017, exemplifies this approach. New entrants, including those from traditional finance, are expressing interest, but successfully navigating the intricate layers of blockchain to reach application development requires substantial experience. Investors with comprehensive knowledge are crucial for effective capital deployment.
Interviewer: What is the current investment landscape for blockchain startups?
Martynov: The investment environment for blockchain startups is more favorable now compared to previous cycles. There is growing regulatory acceptance and increasing institutional adoption that are outpacing retail enthusiasm, marking a shift from infrastructure development to practical Web3 applications such as marketplaces, incentive programs, and privacy-focused social networks—opportunities that were largely absent in earlier phases. Technology has advanced significantly, with solutions like Ethereum’s Layer 2 facilitating the transition from Web2 to Web3. Additionally, younger generations are finding crypto more intuitive; it’s comparable to how touchscreens emerged post-smartphones, making credit cards seem antiquated in comparison. This combination positions the current cycle as especially promising for innovation.
Interviewer: What advice would you offer to blockchain startups looking for funding in today’s environment?
Martynov: In past cycles, there was too much focus on technology without consideration for the product itself. Now, entrepreneurs need to emphasize product development while leveraging Web3 business models, ensuring they have a solid grasp of fundamental elements: clear motivations for transitioning to Web3, a strong product-market fit, exceptional user experience, and effective financial management. The priority should be on delivering genuine value rather than merely showcasing technology.
Interviewer: Are there particular technologies or initiatives currently capturing your attention?
Martynov: Absolutely, several technologies are noteworthy. AI-driven security measures to proactively guard against cyber threats are essential for enhancing resilience. Abstract Accounts that provide secure, user-friendly digital identities could simplify Web3 access. Additionally, Zero Knowledge Proofs might lead to privacy-respecting collaborations between decentralized exchanges and banks, enabling trusted data sharing. I also favor projects that bridge the gap between Web2 and Web3, such as traditional institutions embracing crypto and DeFi, or Web3 solutions that improve Web2 user experiences with concepts like GameFi. Our investment in Pave Bank exemplifies this — its PaveNet layer integrates third-party services within a regulated banking framework, utilizing DeFi’s programmability for streamlined financial management.
Interviewer: How are traditional financial institutions adjusting to DeFi, and what role will regulation have?
Martynov: Early initiatives include offering cryptocurrency accounts, much like Revolut has accomplished. However, the integration of DeFi remains slow. Banks could start leveraging decentralized exchanges for economical swaps, staking (e.g., earning 4% yield), and lending (e.g., up to 10%), which would far exceed traditional business account interest rates, typically at zero despite various fees. Pave Bank and potentially Revolut are exploring these opportunities. Regulation will significantly influence competitiveness: banks that prioritize efficiency and rewards will prosper, while outdated, costly institutions are likely to struggle.
Interviewer: Do you foresee collaborative prospects between DeFi and traditional finance?
Martynov: Yes, banks could incorporate DeFi services into their crypto account offerings, as mentioned earlier. Traditional financial entities might look to tokenize real-world assets (like real estate and commodities) for DeFi protocols, facilitating fractional ownership and trading on decentralized exchanges, thereby broadening investment alternatives. Furthermore, blockchain technology could enhance security and transparency within traditional finance—unlike centralized platforms that struggle during hacks or traditional finance that freezes during crises, DeFi and crypto have proven to be resilient.
Interviewer: How do you anticipate the regulatory environment evolving in the next cycle, particularly with the potential influence of the new administration’s stance on crypto?
Martynov: Global regulators have generally been reluctant to embrace crypto, with only smaller nations delving into progressive regulations due to concerns over U.S. hegemony. Recently, both the Biden and Trump administrations have adopted more favorable attitudes toward crypto, influenced by a younger, tech-savvy voter base (ages 25-30) who are drawn to Web3 and find cryptocurrency intuitive. Traditional finance is now recognizing blockchain as the future of the internet, with unstoppable adoption on the horizon. Trump’s firsthand experience with censorship, along with the support of his blockchain-savvy family, demonstrates a genuine commitment to spearheading this movement—unlike Biden’s political maneuvering. His administration, including figures like Elon Musk and appointed officials focused on crypto regulation, indicates a forthcoming legislative push for asset tokenization and DeFi integration. With recent developments regarding the Bitcoin Strategic Reserve and clearer digital asset regulations, I foresee a more supportive stance under Trump, with minimal regression anticipated.
Interviewer: Finally, how might policy changes influence the growth and acceptance of blockchain technology in the U.S. and beyond?
Martynov: As I highlighted earlier, extreme viewpoints for and against blockchain are starting to soften, leading to more constructive conversations surrounding tokenization, efficiency, and the transparency of financial systems.
I believe that once the U.S. increases its National Reserve’s Bitcoin holdings and establishes a substantial stockpile of crypto assets, this could trigger a domino effect with other nations following suit. Many countries from Latin America, the Middle East, Africa, and parts of Europe are waiting for more clarity from the U.S. government and regulatory agencies.
The current market price fluctuations represent a temporary disruption, which is expected given the abrupt policy shifts in the U.S., encompassing political memes, ambiguous tariffs, and retaliatory measures. Time is essential for resolution. In the medium term, I hold a very optimistic outlook for late 2025, by which point clearer policies should emerge, setting the stage for continued growth.