Key Takeaways
- • CoinShares Asset Management, which manages approximately $10 billion in assets and ranks as Europe's leading digital asset ETP manager and the fourth-largest globally, has partnered with Kiln to deploy its Railnet protocol for onchain settlement, NAV management, and compliance infrastructure.
- • The partnership enables CoinShares to launch its first onchain asset management strategy, combining DeFi lending yields, tokenized real-world asset yields, and basis arbitrage strategies within a single regulated fund structure—positioning the firm as the first regulated European asset manager to converge these three yield sources.
- • Railnet functions as a "verifiable trust layer" that embeds compliance controls directly into programmable infrastructure, enabling CoinShares to operate under AIFMD, MiFID, and MiCA licenses while handling deposit/redemption flows and transparent reporting for institutional allocators.
- • The onchain strategy represents a third pillar for CoinShares alongside its existing crypto ETP business and active alternative investment strategies, addressing institutional demand for hybrid finance convergence.
Summary
CoinShares Asset Management has announced a strategic partnership with financial technology company Kiln to bring its regulated fund infrastructure onchain through deployment of the Railnet protocol. The partnership marks a significant evolution in how European asset managers can structure institutional-grade digital asset strategies while maintaining regulatory compliance.
CoinShares, which oversees approximately $10 billion in assets and holds the position of Europe's top digital asset ETP manager and fourth-largest globally, will use Railnet to handle critical operational functions including settlement flows, net asset value management, deposit and redemption processing, and the compliance layer required by institutional investors. Jérôme Castille, Managing Director at CoinShares, characterized the Railnet integration as a deliberate infrastructure decision designed to support the firm's expansion into hybrid yield strategies.
The new onchain strategy blends three distinct yield sources within a single compliant fund structure: DeFi lending yields, conventional yields from tokenized real-world assets, and basis arbitrage strategies. This convergence positions CoinShares as the first regulated European asset manager to combine these three yield sources under one roof. The firm operates under AIFMD, MiFID, and MiCA licenses, ensuring institutional-grade regulatory oversight.
Railnet, developed by Kiln and described by both companies as a "verifiable trust layer," embeds compliance controls directly into programmable infrastructure for settlement and reporting. This technical approach allows CoinShares to access yield sources and execute combined strategies that would otherwise be unavailable through traditional structures. Laszlo Szabo, CEO of Kiln, and Jean-Marie Mognetti, CEO of CoinShares, both emphasized the strategic importance of hybrid finance convergence in institutional digital asset management.
The onchain strategy represents a new third pillar for CoinShares, complementing its existing crypto ETP business and active alternative investment strategies. The partnership signals institutional-grade infrastructure is now available for European asset managers seeking to deploy capital across both decentralized finance and tokenized traditional assets within a single regulated vehicle.
CoinShares, which oversees approximately $10 billion in assets and holds the position of Europe's top digital asset ETP manager and fourth-largest globally, will use Railnet to handle critical operational functions including settlement flows, net asset value management, deposit and redemption processing, and the compliance layer required by institutional investors. Jérôme Castille, Managing Director at CoinShares, characterized the Railnet integration as a deliberate infrastructure decision designed to support the firm's expansion into hybrid yield strategies.
The new onchain strategy blends three distinct yield sources within a single compliant fund structure: DeFi lending yields, conventional yields from tokenized real-world assets, and basis arbitrage strategies. This convergence positions CoinShares as the first regulated European asset manager to combine these three yield sources under one roof. The firm operates under AIFMD, MiFID, and MiCA licenses, ensuring institutional-grade regulatory oversight.
Railnet, developed by Kiln and described by both companies as a "verifiable trust layer," embeds compliance controls directly into programmable infrastructure for settlement and reporting. This technical approach allows CoinShares to access yield sources and execute combined strategies that would otherwise be unavailable through traditional structures. Laszlo Szabo, CEO of Kiln, and Jean-Marie Mognetti, CEO of CoinShares, both emphasized the strategic importance of hybrid finance convergence in institutional digital asset management.
The onchain strategy represents a new third pillar for CoinShares, complementing its existing crypto ETP business and active alternative investment strategies. The partnership signals institutional-grade infrastructure is now available for European asset managers seeking to deploy capital across both decentralized finance and tokenized traditional assets within a single regulated vehicle.
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