CoinShares, which manages roughly $10B in assets and holds the title of Europe’s top digital asset ETP manager, is taking its regulated fund infrastructure onchain. The firm announced a strategic partnership with financial technology company Kiln, built around Kiln’s Railnet protocol, to handle settlement flows, compliance controls, and transparent reporting for a new hybrid investment strategy.
What the partnership actually involves
Jérôme Castille, Managing Director at CoinShares, framed the Railnet integration as a deliberate infrastructure decision. The protocol will handle deposit and redemption flows, net asset value management, and the compliance layer that institutional allocators demand before writing checks.
The strategy itself blends DeFi lending yields with conventional yields from tokenized real-world assets, plus basis arbitrage strategies, all within a single compliant fund structure. This positions CoinShares as the first regulated European asset manager to converge these three yield sources under one roof. The firm operates under AIFMD, MiFID, and MiCA licenses.
CoinShares views this new strategy as a third pillar alongside its existing crypto ETP business and active alternative investment strategies.
Why Railnet, and what is it
Railnet, developed by Kiln, functions as what both companies describe as a “verifiable trust layer.” The protocol embeds compliance controls directly into programmable infrastructure for settlement and reporting.
Laszlo Szabo, CEO of Kiln, and Jean-Marie Mognetti, CEO of CoinShares, both emphasized the hybrid finance convergence angle. No specific cryptocurrency tokens were disclosed as part of this partnership.
The broader context for institutional DeFi
The firm ranks as the fourth-largest digital asset ETP manager globally. CoinShares is not just tokenizing a single asset class, but building an entire yield strategy that pulls from both onchain and offchain sources, describing the approach as managing “various independent risk premia,” with the DeFi lending component, the RWA tokenization component, and the basis arbitrage component treated as distinct risk buckets.