Rayls Is Turning Traditional Finance into a 24/7 Market
A single financial institution working with Rayls points over 1.3 million tokenized certificates of deposit day-after-day, a formidable instance of how blockchain can already deal with actual monetary scale. In this interview, Marcos Viriato, CEO at Parfin and Builder at Rayls, discusses his journey from conventional banking to Web3, how Rayls bridges the hole between personal and public chains, and why he believes tokenization and privacy-preserving expertise will redefine the way forward for international finance.
Can you please introduce your self as a skilled and inform us about your journey into Web3?
I’ve been working in conventional finance for about 25 years, spending 13 of these at a financial institution known as BTG Pactual, the biggest funding financial institution in Latin America. During my profession there, I used to be an MD Partner accountable for international operations and expertise, managing round 2,000 staff throughout Brazil, Chile, Colombia, Peru, Mexico, the United States, Canada, and the United Kingdom. At one level, I used to be additionally the CTO for your entire financial institution.
Being so near expertise, I acquired to know crypto in 2014 once I purchased my first bitcoins. From there, I began finding out blockchain and its protocols. I spotted that blockchain had the potential to resolve a main drawback in monetary markets: liquidity fragmentation. When I left the financial institution in 2019, I took a sabbatical and mirrored on how monetary markets, as we all know them, would ultimately migrate to blockchain rails.
We noticed that monetary establishments lacked the sort of infrastructure they may belief and comfortably use. That is why we began constructing Rayls, a blockchain designed for banks and monetary establishments, centered on compliance, on-chain KYC, suitability checks, and different options banks require. Security is prime; it’s our first precept. Our mission is to deliver 100 trillion {dollars} in belongings on-chain by serving to banks undertake blockchain, tokenize belongings, and migrate legacy techniques to blockchain infrastructure.
Rayls combines a public Ethereum-compatible chain with personal networks for establishments. How does this unified method stability privateness, compliance, and interoperability?
It is troublesome for a financial institution to maneuver immediately from off-chain techniques to public blockchains. Many of their merchandise, comparable to certificates of deposit, are bought to their very own shoppers. They don’t essentially must concern these on a public chain, however they nonetheless wish to tokenize and modernize.
Our mannequin permits a financial institution to start out by implementing its personal personal community, the place it may tokenize belongings, take a look at flows, and concern tokenized deposits. This provides them consolation and management. However, staying solely on a personal community doesn’t combination liquidity. That is why our personal networks are seamlessly built-in with the general public chain.
For occasion, a financial institution can transfer tokenized belongings from its personal community to the general public chain for liquidity or different use instances, comparable to enabling shoppers to commerce, borrow, or lend towards these belongings. We are already working with a financial institution that plans to deploy a lending pool on a public chain the place others can deposit belongings to help lending actions.
This hybrid setup presents flexibility: personal networks for high scalability, velocity, and safety, and interoperability with public chains for liquidity. One of our real-world instances entails a financial institution with 65 million clients issuing 1.2 to 1.3 million certificates of deposit each day. Doing that on a public chain could be far too gradual and costly, however with our setup, they will concern on the personal community and switch solely chosen belongings to the general public chain when liquidity is required.
What particular challenges in conventional finance does Rayls purpose to handle? How does your platform allow banks to securely undertake blockchain and DeFi options?
The first problem is scalability. Traditional blockchains like Ethereum can course of round 300 to 400 transactions per second, which isn’t sufficient for banks issuing over a million tokens per day. Our personal community reaches as much as 10,000 transactions per second, permitting a financial institution to tokenize a million belongings in about 5 minutes.
The second problem is privateness. We developed Rayls Enigma, a privacy-preserving protocol utilizing zero-knowledge proofs. Banks don’t wish to expose shopper balances, transaction quantities, or holdings. Our protocol preserves this confidentiality whereas permitting them to make use of blockchain securely.
We are additionally increasing this privacy-preserving expertise to lending, AMMs, and even auctions, all with privateness. These instruments enable banks to securely symbolize, trade, and retailer tokenized worth throughout totally different asset courses.
How do you see the way forward for blockchain adoption throughout the conventional finance system? Will tokenization reshape monetary markets?
Tokenization introduces a 24/7 monetary market, similar to crypto. It allows steady commerce, switch, and liquidity.
Second, stablecoins enhance fee infrastructure, making settlements on the spot and international. You can transfer tens of millions in seconds wherever on the earth.
Third, tokenization allows liquidity aggregation. Imagine a world the place all belongings, together with shares, bonds, actual property, and receivables, are tokenized. These belongings will be transferred, used as collateral, or exchanged immediately, unlocking monumental liquidity that’s presently trapped in silos.
An important instance is from the DTCC, the biggest central counterparty within the United States. They not too long ago tokenized belongings so shoppers might commerce them within the U.S. after which use the identical belongings as collateral in Japan in a single day. That is a enormous leap in market effectivity. We are nonetheless within the early levels, however the transformation has already begun.
Do you suppose banks are able to embrace DeFi-like infrastructure?
I feel it’s a journey. A couple of years in the past, crypto was virtually taboo in banks. Some even closed accounts of crypto corporations. However, as laws grew to become clearer, particularly within the United States, banks started realizing the potential of blockchain.
It is just not a straightforward transition; it requires new expertise, expertise, and custody fashions. So banks are beginning small: tokenizing belongings in closed environments for their very own shoppers, then regularly increasing to extra open techniques. Some establishments are already well-prepared, having spent years constructing digital asset divisions and tech stacks.
Now, with regulatory readability, we see extra banks eager to launch stablecoins, undertake crypto, and tokenize belongings. We are at the beginning of a main technological shift in finance.
Looking on the blockchain and finance business as a complete, what developments or improvements do you discover most enjoyable, and the way is Rayls positioned to reap the benefits of them?
Tokenization is certainly vital, however the true transformation will come when banks and monetary establishments begin providing on-chain providers.
For instance, think about utilizing an AMM to carry out an on-chain FX transaction, changing a non-USD stablecoin into a USD stablecoin immediately. The liquidity in these AMMs could be offered by monetary establishments.
Picture this: an exporter in Argentina sells soybeans to China. The Chinese purchaser pays in yuan, whereas the Argentine vendor wants pesos. Through on-chain FX utilizing stablecoins, that transaction might occur immediately and transparently.
Furthermore, that very same exporter would possibly wish to use their receivable, comparable to a 30-million-dollar soybean cargo, to get financing. That commerce finance receivable may very well be tokenized and positioned in a lending pool, the place traders present liquidity in trade for yield. We are already implementing this with a main buying and selling firm producing 3 billion {dollars} in annual income.
This is the place Rayls brings actual worth by enabling environment friendly, tokenized, and privacy-preserving finance.
Can you share any upcoming product milestones, partnerships, or pilots that the group and traders ought to look ahead to this 12 months and subsequent?
Yes, we’re presently launching our public chain testnet, and we’re thrilled with the outcomes to date. We plan to go reside round December to make sure the chain is strong and meets shopper necessities.
On the personal community aspect, we’re going reside with a buying and selling firm on a main mission: the tokenization of commerce finance receivables. That is a important milestone.
We are additionally partnering to deliver our privacy-preserving AMM protocol to market. There are extra thrilling collaborations within the pipeline, some we can not disclose but, however we’re in a sturdy place to ship actual on-chain worth and increase our group’s involvement in these transformative tasks.
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