Flash Talk by Laszlo Szabo - CEO & Co-founder, Kiln

Can you hear me guys? We made it. Found the right address, huh? Well, hi everyone. I'm Laslo Sabo, the co-founder and CEO of Kil.

And at Kil, we're building the leading onchain platform for institutions and in the individuals in crypto. So, I'm very glad to announce something today. my team. A lot of them in the room today. I think you can raise the end, right?

Raise the end to kill team. Come on. Well, maybe more than half, but that's another topic. Um, I'm very glad to announce today something we've been building for more than a year. We've been very impressed by the amount and the expansion of DeFi vaults and creators in the space.

So we've tapped and focused our attention into onchain asset management. Though we still think it's quite hard for an institution to offer uh yields easily to their users or access it. They often have to build custom integration to tap into each protocols and all these yields are very much fragmented saluted. So I'm very excited today um to share that we've been designing the future of onchain finance and this is why I intend to introduce Railnet the open yield layer for programmable asset management that we've announced by the way on socials one hour and a half before. So, what's Railnet?

And before I'll go into this, I just want to mention, I think Nicholas mentioned it as well. Um, let's face it, tokenization of assets is not a new world. You know, I've been talking about it since I've been in crypto full-time for the past eight years. What changed is really the wording asset tokenization now reward assets but underlying it's the same product. What differs as well today is the people talking about this product large asset managers large financial institutions.

If you look at Black Rockck, they've launched beginning 2024 the Bitcoin ETF which was a massive success and then they launched BTO their onchain money market fund uh which has been tapping into new type of customers and also crushed it in terms of TVL. Same for Apollo, one of the largest um asset manager in the space um largest chatfire asset manager that has been launching a credit tokenizing their credit private credit fund. So it's clear that financial institutions are joining the space. It's a trend that has no debate today, but if you look at the onchain opportunity, it's still massive. We're talking about couple of dozens of billions of assets that are tokenized or representing in DeFi today.

It could be trillions. First, a lot of clients want a new type of asset exposure. Second, they also want to have higher yields in a risk adjusted manner in the right rails. And the asset managers, as Bido and Black Rockck showed, they can tap to new users, users in emerging countries, users that would have never have access to these product before. The onchain opportunity is still massive and we're still at the beginning of it.

But the infrastructure bottleneck is still blocking capital flows. What do I mean by that? There's no single standards that aggregate and standardize the dim flow in DeFi from D5 protocols to real world assets. If you take the 4626 standard, it's a great standard 2019 year, but we think it's still very much limiting when it comes to aggregate this new world coming on chain. Second, the compliance is not often built in for these institutions to access these products.

And last, we've seen specifically recently that creators are now the new counterparty of people that want to access the yield in DeFi. And sometimes these protocols are offering access to good and less experienced creators. So there is the need, that's what we observed, that's why we worked for months. There's the need of an open yield infrastructure to connect these different markets, TRFI and DeFi. a universal layer to standardize DeFi and tokenized asset flows to have compliance built in into a standard and of course make it open so that protocols, asset issuers, asset managers and platforms, institutions can build on top of it.

This needs to be open. So that's why I'm very excited today to announce Railnet. Come on. Yeah. Yeah.

Even in the back of course. Yes. You're excited. So what Real Net is about? Reet is the open yield layer for programmable asset management.

Asset manager will be able to compose yields from any assets and distributed anywhere. That's what Railnet is about, how it works. So this looks like a very normal graph into DeFi. But if you go into the details, you will see the difference. You will see the uniqueness.

You will see the innovation. Here you have one user that is essentially putting and tapping capital into a vault and then asset managers that can use vehicles using the same standards which my I'm going to talk about and these vehicles can wrap and aggregate synchronous flows like lending with instant redemptions but also asynchronous flows which is these new D5 protocols or real world assets coming on chain such as Maple or Ethe with different compliance and embing periods. Rlet runs on steam that's the core unprecedented innovation we bring here. It's a state transition engine for asset managers. It's a set of queries on chain that can standardize any flow, right?

If it's a synchronous flow or synchronous flow with a KYC, an embing perch fund that is being tokenized. Kil is the company behind that standard. So, as a reminder, we're the leading um staking provider and have been thriving staking for institutions and ETF for the past four years. We've been working with the largest custodians, asset managers, wallets, exchanging the space. Uh we've passed $18 billion assets staked this year and we also passed $400 million TVL as we launched the first lending product for our customers.

In fact, 60% of users have seen one of our yield products in the past. So the reason we're doing this is because this is the natural evolution of yield and we have just followed our customer journey on the yield spectrum. Right. Right. We just followed our customer journey.

We started with validators in 2020 and 2021. Then built a set of APIs so that they could automate the staking flow while offering it to their customer. Then we launched the lending product which was highly successful a couple of months this summer uh for the same type of customers and now we think that end user and institutions need to have access to digital native and trfy onchain asset management product so that they trust these asset managers to manage the money on chain for asset managers. It's actually quite innovative because they're often running for the was running vaults, they're often running many vaults on various different protocols. They're fragmenting liquidity versus here they can aggregate liquidity in the same venue tap into vehicles which will plug into any assets any protocols and then flow the liquidity in these protocols and in these assets.

So we'll be bringing these unique yields as it will be a great composition between DeFi and real world assets inside the same yield strategies um very soon couple of weeks with our main design partners. We'll start with stable coins and then v uh BTC and and ETH and we'll continue and and offer uh baskets of stocks in the future. Last but not least, our partners. It's an open ecosystem. We're building it with the largest and the best asset manager, the one that are already running vault in DeFi and some traditional ones that will run onchain fund with us uh in the future.

asset issuers, Maple and Ono, Etheina protocols, platforms, and of course, infrastructure providers such as Chenlink using CR and AC, which enables us to um bridge Trifi to DeFi. Last, and to summarize it, I think you get it. All assets standardized into one standard fully programmable. This is what Railnet is and it's coming live mainet Q1. Go on railnet.

org check it out. Reach out to us to me or to our team after this keynote. Let's build the future of onchain finance together. Thank you very much.