The Onchain Capital Formation Playbook
The Onchain Capital Formation Playbook: How Rayls and District Capital are Building the Foundational Bricks for Trillion-Dollar Liquidity
I. The $100 Trillion Question: Traditional Finance Needs New Rails
Traditional finance is inefficient. Its systems are antiquated and costly. Meanwhile, decentralized finance (DeFi) is an innovative system, but it is small and isolated. DeFi has capital, but it needs stable, high-quality collateral to mature. This is the problem the Rayls and District Capital partnership solves.
Rayls' mission is to bring "$100T onchain".1 This is not a slogan. It is a plan to merge traditional finance's vast capital with DeFi's efficiency. The real-world asset (RWA) tokenization market is currently valued at $118.6 billion. Projections show it could grow to $30 trillion by 2034.2 Rayls' ambitious goal of reaching $100 trillion represents a multi-decade effort to move global capital markets to the blockchain. This partnership with District provides the infrastructure for that shift.
II. The Asset-Layer Innovator: District Capital's RWA Platform
District Capital focuses on a specific asset class: senior secured real estate-backed loans. This is a targeted strategy. Senior secured assets address a key concern of institutional capital: risk. The Centrifuge model shows senior asset tranches offer stable returns with low risk, which attracts investors like family offices and DAO treasuries.5
District's platform offers a competitive 13% APY. This yield comes from cash flows from a real-world asset, not speculative leverage. For institutions and DAOs, this is a stable, predictable yield that beats traditional fixed-income products.
District's credibility comes from its partnerships. Centrifuge, a leading RWA tokenization platform, is building District's product. Centrifuge has over $1 billion in assets financed and provides the core technology to tokenize assets transparently, which is required by institutions.5 By using Centrifuge, District focuses on asset origination.
Centrifuge holds $1.149 billion in total assets financed.
The partnership with Superform for an RWA vault shows District understands composability. Superform's vaults use the ERC-4626 standard, so these real estate-backed assets are immediately usable with other DeFi protocols.7
Fasanara Capital's partnership is a key institutional endorsement. Fasanara is a London-based hedge fund with over $4 billion in assets under management (AUM).8 Collaborating with a sophisticated institutional investor like Fasanara validates District's platform and signals it is ready for institutional use.
A deeper insight into the partnership's strategy is the concept of a "blended product vault." This goes beyond simple tokenization. It's a strategy to use existing tokens to integrate with District's offerings to create a combined product. This model allows for the creation of structured products that cater to specific investor needs, such as a higher preference for liquidity. It is a sign that District is building not just a tokenization service, but a full on-chain capital markets platform.
III. The Foundational Layer: Why Rayls is the Only Platform for This Future
District Capital's plan needs a specialized infrastructure. It needs a platform that solves for privacy, compliance, and interoperability. Rayls is engineered to meet all these needs.
Institutions require confidentiality. A public blockchain exposes proprietary data. Rayls solves this with Enygma-powered zero-knowledge privacy for financial transactions.10 This allows confidential transactions, protecting sensitive data while maintaining blockchain integrity. It is what makes institutional participation possible.
The second barrier is regulation. On-chain finance must follow KYC and AML laws. Rayls addresses this with permissioned, private subnets with programmable compliance.10 Smart contracts can automatically enforce business rules and regulatory checks. For example, a Rayls subnet can allow transactions only between KYC-verified institutional wallets.11 This brings the rule of law to DeFi.
Interoperability is also essential. Rayls' partnership with LayerZero, an interoperability protocol, is crucial. LayerZero connects Rayls' private subnets to over 120 public blockchains.12 This cross-chain architecture lets compliant assets on Rayls access public DeFi liquidity, and public liquidity can flow into Rayls' compliant environments.
The credibility of Rayls is not theoretical. Its technology is validated by high-profile partnerships.
IV. The DeFi Integration: A Call to Action
DeFi's next act is integrating real-world assets. Rayls and District's partnership shows how. It is a direct on-ramp for DeFi protocols to access compliant, institutional-grade assets and liquidity.
DEXs like Uniswap can benefit. Uniswap V4's "Hooks" architecture is a perfect fit for Rayls. The architecture is explicitly designed to handle "complex business rules" and is "critical for institutional adoption and Real-World Asset (RWA) integration".13 A DEX on a Rayls subnet could use this to create a permissioned, KYC-gated liquidity pool. This would let institutions trade tokenized RWAs while enforcing compliance at the smart contract level. This expands Uniswap's market to trillions.
Lending protocols like Aave or Compound also have a strong case. Their main challenge is the volatility of collateral like ETH or BTC. This limits their ability to attract stable capital. Rayls presents a solution by offering a platform to launch new lending markets collateralized by District's senior secured real estate-backed loans. These markets would be permissioned and confidential. This new, stable collateral base can attract a new class of lenders, diversify risk, and create a more robust financial ecosystem.6
This ecosystem creates a powerful flywheel. District brings high-quality assets. Rayls provides the infrastructure for privacy, compliance, and interoperability. DeFi protocols provide the liquidity and composability. This cycle of assets, infrastructure, and liquidity will only grow.
V. Conclusion: The Grand Unification of Capital
The Rayls-District partnership is not just a business deal. It is a new playbook for on-chain capital formation. The on-chain world has been asset-poor. The off-chain world has been inefficient. The partnership is a signal that this separation is ending.
The playbook is clear. Start with high-quality, real-world assets. Host them on an infrastructure that provides privacy and compliance. Make these assets available to the DeFi ecosystem.
This partnership is the first end-to-end example of this playbook. It is proof that the future of finance is not one or the other, but both. Rayls is building the infrastructure, and the partnership with District Capital is the first significant example of how this trillion-dollar bridge is now open.
Works cited
- Rayls: The blockchain for banks, accessed on August 11, 2025, https://www.rayls.com/
- Insight into Tokenization of Real-World Assets - The National Law Review, accessed on August 11, 2025, https://natlawreview.com/article/tokenization-real-world-assets-opportunities-challenges-and-path-ahead
- The Growth of RWA Tokenization - Duane Morris Blogs, accessed on August 11, 2025, https://blogs.duanemorris.com/fintech/2024/12/03/the-growth-of-rwa-tokenization/
- Tokenization of Real-World Assets: Opportunities, Challenges and the Path Ahead, accessed on August 11, 2025, https://katten.com/tokenization-of-real-world-assets-opportunities-challenges-and-the-path-ahead
- Centrifuge, Real-World Asset: Investor Guide, accessed on August 11, 2025, https://www.diadata.org/rwa-real-world-asset-map/centrifuge/
- Centrifuge | Infrastructure for Tokenized Financial Products, accessed on August 11, 2025, https://centrifuge.io/
- RWA Vault - ETHGlobal, accessed on August 11, 2025, https://ethglobal.com/showcase/rwa-vault-bbs2a
- Digital - Fasanara Capital, accessed on August 11, 2025, https://www.fasanara.com/digital
- About Us - Fasanara Capital, accessed on August 11, 2025, https://www.fasanara.com/about
- accessed on December 31, 1969,
- What is Institutional DeFi? | Fireblocks, accessed on August 11, 2025, https://www.fireblocks.com/institutional-defi/
- LayerZero partners with Rayls to enhance blockchain finance, accessed on August 11, 2025, https://cfotech.co.nz/story/layerzero-partners-with-rayls-to-enhance-blockchain-finance
- Uniswap Protocol V4 Hook-based On-Chain Policy ... - SEC.gov, accessed on August 11, 2025, https://www.sec.gov/about/crypto-task-force/written-submission/ctf-written-input-mohamed-elbendary-052025-2
What Is Decentralized Finance (DeFi) and How Does It Work? - Investopedia, accessed on August 11, 2025, https://www.investopedia.com/decentralized-finance-defi-5113835
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