Crypto’s Next Breakthrough Could Start In The Classroom

Cryptocurrency’s next major breakthrough might come from an unexpected place: education finance. Yat Siu, co-founder and executive chairman of Animoca Brands, believes that rethinking how we fund education through blockchain technology could be the catalyst that finally brings crypto to mainstream adoption. In a recent interview on Cointelegraph’s Byte-Sized Insight podcast, Siu emphasized that practical use cases like student loans backed by decentralized finance (DeFi) may prove more convincing than symbolic educational funding or awareness campaigns, according to Cointelegraph.

This vision is already taking shape through Pencil Finance, a project supported by Animoca Brands and its education arm Open Campus, which recently announced a $10 million student loan financing initiative aimed at providing more affordable, blockchain-backed loans to students. The approach represents a shift in strategy from focusing on crypto awareness to creating essential financial infrastructure that directly addresses real-world problems.

DeFi Student Loans: A Practical Solution

While the crypto industry has seen various attempts to gain mainstream traction, Siu suggests that DeFi-powered student loans could provide the compelling value proposition needed to demonstrate blockchain’s practical benefits to everyday users. By offering more affordable and accessible financing options for education, blockchain technology could address a critical pain point in the current financial system.

“We have to show what [crypto] is good for. We’ve got to start from the grassroots,” Siu explained during the interview. This approach contrasts with purely symbolic funding initiatives, such as Ripple’s recent $25 million donation to a crypto education fund, which Siu suggests does not go far enough to demonstrate blockchain’s real-world utility.

Early Onboarding For Long-term Adoption

Siu emphasized the strategic importance of introducing students to blockchain technology early in their educational journey, drawing parallels to Apple’s historical approach in the education market. “You want to onboard them at the earliest levels and let them understand what’s going on,” he noted. “That’s what Apple did with education discounts. It wasn’t about profit at first—it was about future influence.”

By integrating blockchain solutions into the education financing process, the industry can potentially create a generation of users who understand and appreciate cryptocurrency’s practical applications from an early stage. This could lead to more organic, sustained adoption as these students enter the workforce and bring their blockchain literacy with them.

Beyond Awareness: Building Essential Infrastructure

The approach advocated by Siu and implemented through projects like Pencil Finance represents a shift from raising awareness about blockchain to building essential infrastructure that addresses real-world problems. This distinction is crucial in an industry that has often struggled to articulate its value proposition to mainstream audiences beyond investment speculation.

By focusing on practical applications in education financing, blockchain technology can demonstrate its ability to improve existing systems rather than simply replace them. This could help overcome skepticism from traditional financial institutions and regulators who have been hesitant to embrace cryptocurrency innovations.

Strategic Partnerships in Education

Animoca Brands’ approach to education is part of a broader strategy that includes strategic partnerships and investments in blockchain education initiatives. Through its education arm Open Campus, the company is working to create an ecosystem that supports both learning about blockchain and implementing blockchain solutions in educational settings.

These partnerships extend beyond financing to include curriculum development, educational gaming, and other initiatives designed to increase blockchain literacy among students. By approaching education holistically, Animoca aims to create multiple entry points for students to engage with blockchain technology in meaningful ways.

Long-term Vision for Crypto Adoption

Siu’s perspective on education as a pathway to mainstream crypto adoption reflects his long-term vision for the industry. Rather than focusing on short-term price movements or speculation, this approach emphasizes building sustainable use cases that address genuine needs in society.

This patient, infrastructure-focused strategy aligns with Siu’s previous statements about 2025 potentially being a breakthrough year for cryptocurrency adoption. By establishing practical applications in education finance and other sectors, the blockchain industry can gradually earn the trust and interest of mainstream users who might otherwise remain skeptical of purely speculative cryptocurrency investments.