It was stated by Yat Siu, chairman of Animoca Brands, during his appearance at Consensus Toronto, that “education will be the next major wave in Web3.”According to Yat Siu, chairman of Animoca Brands, the integration of student loans onto the blockchain would result in more than a fourfold increase in the total value locked (TVL) within decentralized finance (DeFi), thereby significantly accelerating the industry’s growth.
While speaking at Consensus 2025 in Toronto, the $3 trillion global student loan market was identified by Siu as an underutilized opportunity for the cryptocurrency sector. It was suggested by him that transitioning even 10% of that market onto the blockchain could substantially enhance the expansion of decentralized finance (DeFi).
He noted that the total value locked (TVL) across all of DeFi would be increased by more than four times, emphasizing that the sector remains in its nascent phase.
Web3 Education Tools Poised to Accelerate Crypto Adoption
It was stated by Siu that financial tools built on Web3 for the education sector could serve as a catalyst for widespread cryptocurrency adoption, particularly among younger populations and those without access to traditional banking services.
It was remarked by him that “the first unbanked are the kids.” He explained that if a student is issued a loan onchain and repays it through the same system—under regulatory oversight and with improved speed, efficiency, and cost—they are effectively introduced to and integrated into the crypto ecosystem for life.
The scenario was likened by Siu to the growth of PayPal and Venmo, which expanded by delivering essential services to underserved populations. He proposed that student loans could function as a gateway for cryptocurrency to enter mainstream adoption.
Animoca Brands’ recent investment in Pencil Finance, a startup offering student loans through crypto-native solutions, was also highlighted by the executive. It was noted by Siu that the project is currently operating in the Philippines and Indonesia, with plans underway for expansion into the United States.
A $10 million student loan financing initiative aimed at offering more affordable, blockchain-supported loans was announced by Pencil Finance on April 30.
In a prior interview, it was stated by Siu that the industry is in need of “positive-sum use cases” that are widely understood. He noted that students would likely show greater support for cryptocurrency if increased opportunities were made available to them through crypto-based loan options.
Education Emerges as a Prime Use Case for Web3
The audience at Consensus was also informed by Siu that education represents a natural application for Web3 technologies. He pointed to YouTube and TikTok—often categorized merely as entertainment platforms—as examples, stating that these social media channels have evolved into the largest informal education tools globally.
It was stated by Siu that everything is inherently connected to education and that Web3 holds the potential to achieve something comparable. He emphasized that “education is actually fundamental and a continuous part of our lives.”
It was suggested by him that the integration of financial infrastructure into educational experiences could allow Web3 to transform learning communities and reputation-based networks into capital assets, thereby establishing the foundation for a new decentralized financial ecosystem.
