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].

Group 1 - HashKey Holdings has cleared its Hong Kong listing hearing and could raise around US$500 million in an upcoming IPO, which will test investor confidence in the digital asset sector amid evolving regulations [1] - The planned listing occurs as China's central bank maintains a strict stance on virtual currencies, including stablecoins, and continues to enforce a ban on cryptocurrency trading in mainland China since 2021 [2] - Hong Kong has established regulatory frameworks for exchanges, stablecoin issuers, and custodians, positioning itself as a digital asset hub and a testing ground for mainland China's digital tokens [3] Group 2 - The digital asset trading market is heavily reliant on concentrated tokens, particularly bitcoin and ether, which affects investment sentiment and pricing [4] - HashKey, one of 11 licensed virtual asset trading platforms in Hong Kong, has reported a net loss of HK$506 million in the first half of this year, although this is an improvement from a loss of approximately HK$777 million in the same period last year [5] - HashKey dominates Asia's onshore digital asset market, accounting for over 75% of regional trading volumes in 2024 and nearly HK$20 billion (US$2.56 billion) in client assets [5]