Core Viewpoint - CoinShares International Limited has announced a strategic partnership with Kiln to launch an innovative on-chain asset management strategy that integrates DeFi yields with tokenized real-world asset (RWA) yields, marking a significant advancement in the digital asset management space [2][3]. Group 1: Strategy Overview - The new strategy represents the third pillar of CoinShares' investment platform, complementing its existing crypto ETPs and active alternative strategies, and aims to enhance diversification and risk management [3]. - The strategy allocates across six distinct yield sources, including DeFi lending protocols, institutional secured lending, tokenized bond funds, and delta-neutral basis strategies, allowing for a comprehensive exposure to on-chain opportunities [4]. - The strategy is designed to be flexible, with portfolio composition adjustable based on market conditions and risk assessments [4]. Group 2: Regulatory Framework - CoinShares Asset Management is authorized under AIFMD and MiFID for financial instruments and under MiCA for crypto-assets, enabling it to operate across regulated securities and crypto-markets within a compliant framework [5]. - This dual authorization provides a structural advantage, allowing CoinShares to allocate across both traditional financial instruments and crypto-asset services, which many managers cannot do [6]. Group 3: Technological Infrastructure - The Railnet protocol serves as the foundational layer for the new strategy, providing a verifiable trust layer that enhances capital allocation and integrates diverse yield sources into a single auditable framework [2][10]. - Railnet standardizes the investment lifecycle, allowing asset managers to treat various yield sources as a single asset class, thus simplifying the complexity of on-chain finance [11]. - The partnership with Kiln enables CoinShares to access unique yield sources and manage risk effectively, positioning it as a leader in the digital asset investment space [8][10]. Group 4: Growth and Market Positioning - The launch of this strategy reinforces CoinShares' positioning across three distinct growth pillars, allowing it to capture opportunities in the evolving digital asset market [13]. - CoinShares aims to provide institutional-grade yield products to clients through partnerships with custodians, exchanges, and wallet providers, leveraging its regulatory credentials and expertise [12].

Core Insights - Kraken has launched the world's first regulated tokenized-equity perpetual futures, enhancing its xStocks ecosystem and providing non-U.S. traders with 24/7 access to leveraged trading on major equities, indices, and commodities [1][8] Group 1: Product Features - The new tokenized equity perpetual futures are fully collateralized, offering 1:1 asset-backed exposure to high-profile assets such as the S&P 500, Nasdaq 100, and individual stocks like Nvidia and Apple [2] - These perpetual contracts allow for continuous trading, including weekends and holidays, facilitating ongoing price discovery even when traditional markets are closed [3] - Traders can utilize up to 20x leverage in a regulated environment, enabling complex trading strategies such as short selling and event-driven trades [3][4] Group 2: Capital Efficiency and Margin Trading - The new setup enhances capital efficiency, requiring less upfront capital compared to spot markets, while allowing for effective position management during market volatility [4] - Kraken Pro now integrates margin trading on xStocks, allowing users to leverage positions up to 3x on core assets without liquidating existing crypto holdings [5] - Eligible balances can automatically serve as collateral, supporting both long and short trades in familiar pair formats [5][6] Group 3: User Experience and Risk Management - The unified approach allows crypto traders to gain equity exposure, while traditional margin users can access digital markets within a single account [6] - Institutional-grade safeguards are in place, including automated margin calculations and real-time liquidation logic, enhancing user experience and risk management [6][7] - Positions can be closed through opposing trades or direct settlement, providing flexibility for various trading strategies [7]

Group 1: Market Growth and Projections - Decentralised finance (DeFi) transaction volume is expected to exceed $3 trillion by next year, with total value locked across blockchain networks projected to reach $500 billion by 2026 [1][2] - Fundraising for DeFi-linked projects is anticipated to rise to $40 billion next year, doubling from approximately $20 billion in 2025, driven by capital injections from token sales and venture capital [2] Group 2: Hybrid Finance and Adoption - A hybrid finance model is expected to emerge, where traditional banks utilize DeFi smart contracts for settlement and yield, with the number of hybrid projects involving major banks projected to at least double by 2026 as regulatory clarity improves [3] - Real-world asset tokenisation is forecasted to grow from $1.1 trillion currently to $2 trillion next year, indicating a convergence of traditional markets with blockchain finance [4] Group 3: Leading Sectors and Market Structure - Key sectors leading the growth in tokenisation include tokenised funds, stocks, real estate, corporate debt, and money market funds, which will bridge traditional finance and DeFi, enhancing liquidity for both institutional and retail participants [5] - By mid-2026, DeFi wallets are expected to reach 12 million, although only 25-35% are projected to be unique active users, indicating a market stabilising in a more data-driven and utility-focused manner [6]