SAINT HELIER, JerseyCoinShares International Limited ("CoinShares" or "the Group"), with an announced merger with Vine Hill Capital Investment Corp, a leading global asset manager specialising in digital assets, announced a strategic partnership with Kiln, the institutional on-chain yield infrastructure provider. The firm will leverage its Railnet protocol to launch its first on-chain asset management strategy, with Railnet providing the verifiable trust layer for the future of capital allocation. The strategy integrates DeFi protocol yields with tokenised real-world asset (RWA) yields, marking the first time a fully regulated European asset manager has combined DeFi protocol yields with tokenised RWA within a single institutional-grade vehicle.

This launch represents the third pillar of CoinShares' investment platform. Alongside its market-leading crypto ETPs, the original securitization of digital assets, and its active alternative strategies designed to generate alpha, CoinShares now offers on-chain asset management: a capability that integrates native DeFi yields with tokenised RWA returns for enhanced diversification and a more robust risk framework.

Strategy Composition

The strategy allocates across six distinct yield sources, spanning the full spectrum of on-chain opportunity. This diversified approach enables exposure across DeFi lending protocols, institutional secured lending, yields from tokenised bond funds and bond ETFs, and delta-neutral basis strategies, all within a single managed allocation. Portfolio composition may be adjusted over time based on market conditions and risk assessment. 

Regulatory Foundation

The strategy is managed by CoinShares Asset Management, a European asset manager authorized under AIFMD and MiFID for financial instruments and under MiCA for crypto-assets. This dual authorization enables CoinShares to allocate across regulated securities, tokenised financial instruments and native crypto-markets within a single compliant framework.

This regulatory architecture provides a structural advantage: many managers are authorized either for traditional financial instruments or for crypto-asset services, but not both. CoinShares’ dual perimeter allows cross-market allocation while maintaining full regulatory oversight across asset classes.

Jean-Marie Mognetti, CEO and Co-founder of CoinShares, commented: "On-chain is not another crypto product. It's a new distribution rail. For years, we have articulated our hybrid finance thesis, the convergence of traditional finance and decentralised finance. Today, that thesis becomes operational. With the Railnet technology, we are accessing yield sources that others cannot reach and combining them in ways others cannot structure. This is what it means to be the one-stop shop for digital asset investment. Importantly, this strategy is not a single-protocol yield product. It is a structured, diversified allocation across multiple independent risk premia — credit, liquidity provision, secured financing, and relative value — managed within a regulated framework"

Laszlo Szabo, CEO and Co-Founder of Kiln and Railnet, commented: “Finance is fundamentally the transformation of time. While DeFi has excelled at speed and leverage, durable wealth is created over longer horizons through real economic activity. Bridging these two worlds requires more than connectivity. It requires a system that reflects real-world constraints while encoding them directly on-chain.

Railnet was built as the foundational layer for this next era of finance. As blockchains increase the velocity of global capital, verifiable and programmable constraints become essential. This partnership enables CoinShares, one of the most forward-thinking digital asset managers, to focus on what they do best: identifying value, managing risk, and designing new investment products that blend DeFi and real-world assets in ways not previously available on-chain.

Railnet handles the complexity of financial time, settlement, and constraints, providing the rails for a more trustworthy, efficient, and institution-ready financial system.”

A Structural Advantage: Cross-Market, Cross-Venue Allocation

Unlike strategies confined to single DeFi protocols offering pure DeFi yield, CoinShares investors gain access to a wide range of market opportunities without being locked into one venue's liquidity. Kiln’s Railnet provides the technical infrastructure connecting multiple markets and venues, enabling CoinShares to execute its allocation decisions across diverse yield sources within a single auditable framework. This architecture, combining DeFi lending, institutional secured lending, RWA tokenisation, and basis arbitrage, represents a structural differentiation that single-protocol strategies cannot replicate.