Wednesday, September 2

Laser Digital and Keyring Network are teaming up to develop institutional-grade onchain fixed-income products, as the firms seek to expand decentralized lending infrastructure beyond crypto-native markets.

The partnership combines Keyring’s DeFi infrastructure with Laser Digital’s institutional asset-management expertise. Keyring will handle access verification, risk parameterization and liquidation frameworks for selected lending and borrowing markets, while Laser Digital will provide governance, portfolio-structuring and market-practice expertise.

The companies said institutional adoption of onchain fixed income remains constrained by four issues: permissioning, exploit risk, governance and settlement.

As noted, open DeFi markets can create compliance exposure, while smart-contract vulnerabilities and limited institutional oversight can increase risk for lenders. Traditional offchain settlement and clearing can also conflict with the instantaneous settlement model of DeFi.

To address those issues, the new framework will use zero-knowledge permissioning, quantitative risk modeling, institutional governance, cyber insurance and risk controls, combined with Keyring’s [un]wind settlement technology.

The first markets are ready to launch on Euler Finance, followed by additional partners and strategies in a phased rollout.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

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