D3 Global Secures $5 Million in Seed Funding from Shima Capital, Arthur Hayes, and Others to Transform Top-Level Domains into Web3-Enabled Assets

In a groundbreaking strategy that has the potential to alter the landscape of the domain name market and support the burgeoning Web3 sector, D3 Global a tech startup co-founded by Shayan Rostam and Fred Hsu, has successfully raised $5 million in initial funding with leadership coming from Shima Capital .

This funding round attracted notable investors, including Lightship, Dispersion Capital, Infinite Capital, Maelstrom (Arthur Hayes’ fund) C2 Ventures, among other angel investors.

D3 Global envisions a seamless integration of Web3’s potential with the current internet framework. Its innovative technology holds a patent and aims to enhance the harmony between web2 and web3 while improving utility and security.

In an exclusive conversation with the Metaverse Post, Fred Hsu, the CEO of D3 Global, alongside co-founder Shayan Rostam, expressed their vision to reshape domain ownership by turning existing top-level domains (TLDs) like .com, .net, and .xyz into tokenized assets, allowing for the generation of new TLDs that cater to Web3 communities.

Fred Hsu possesses more than two decades of experience in the domain sector, having guided businesses from their beginnings to achieving impressive annual revenues of $700 million. His extensive background covers both web2 and web3 endeavors, including the recent divestment of his gaming enterprise.

Similarly, Rostam has been a top-level domain registry leader for the last ten years, playing a key role in launching and managing close to 50 TLDs, with .xyz being among the most recognized.
Remarkably, he forged a partnership with Ethereum to introduce .xyz as the first TLD that works with Ethereum wallet addresses, enabling its acceptance within the Web3 realm.

Shaping a New Era of Domain Ownership

According to D3 Global’s Fred Hsu, the new venture presents numerous opportunities, such as domain trading, leveraging domain assets for loans, and enhancing the functionality of domain names within the Web3 environment.

“Our plan is to tokenize current .com, .net, and .xyz domains. Picture owning a domain and being able to sell it while receiving royalties from its transactions,\” shared Shayan Rostam, co-founder of D3 Global, in the interview with Metaverse Post. \”We aim to innovate the domain asset category and integrate the strengths of Web3 with traditional asset frameworks.\”

Moreover, the company intends to partner with Web3 communities enabling them to secure their own top-level domains, such as .polkadot, .avalanche, or .sui, designed for specific community applications. These specialized domains will provide advanced features, including integration with Ethereum wallet addresses and utility in D-ID, open authentication, and related wallet services.

D3’s pioneering method of domain ownership involves the creation of tokenized domain names, effectively transforming them into distinct digital assets represented as ERC-721 tokens or other Ethereum Virtual Machine (EVM) standards.

“We will receive domains from their current owners, secure them in our system, and then generate an ERC-721 token or other EVM representations for trading purposes,\” Fred Hsu explained to Metaverse Post. \”Owners can establish reserve prices, ‘buy-it-now’ choices, or auction settings, similar to selling items on eBay.\”

This seamless integration closes the divide between the conventional domain industry and the emerging Web3 framework.

“Our objective is to ensure transparency and security for this asset type. Tokenization of domains is a logical progression, given the enduring value and utility that domains have always provided,\” Rostam emphasized.

Potential Future Financial Tools and the ICANN Connection

The co-founders also hinted at future ventures, such as fractional ownership and lending services, to augment the domain tokenization ecosystem further. However, their immediate focus remains on educating users and effectively executing the initial phase of tokenization.

While D3 Global’s current priorities involve raising awareness of domain tokenization and facilitating initial tokenization, the team recognizes the possibility to develop further financial instruments, including fractionalization and lending features. These enhancements could significantly boost the functionality and attractiveness of domain tokens.

The company’s ambitious objectives also rely on collaboration with the Internet Corporation for Assigned Names and Numbers (ICANN), a decentralized nonprofit responsible for managing domain names and IP addresses. ICANN’s function as a multistakeholder organization ensures the internet’s stability, transparency, and security.

“The last opportunity for new top-level domains emerged back in 2012. We are now gearing up for the next window, likely anticipated towards late 2025 or early 2026,\” Rostam disclosed to Metaverse Post.

D3 Global stated that their efforts go beyond mere theoretical discussions, as they aim to unveil an on-chain marketplace specifically for domains. This platform will include the tokenization of over 1,000 top-level domains, adding an exhilarating facet to the digital real estate market.

“This is a distinctive opportunity for Web3 ecosystems to engage with the foundational layer of the internet and broaden their horizons. The potential is limitless,\” Fred Hsu noted.

As the digital world evolves, D3 Global’s trailblazing strategy is set to redefine how we perceive and engage with web domains, offering secure digital identities and distinctive property rights.