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Aditya Singh
Aditya Singh

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Institutional DeFi Is Getting Serious: SemiLiquid & Custody-Native Credit Infrastructure

There’s a solid signal coming out of the institutional crypto space that’s easy to miss if you’re only watching retail DeFi.

A new strategic investment arm has just backed SemiLiquid, a team working on custody-native credit infrastructure basically enabling institutions to access credit against tokenized assets without moving those assets out of custody.

👉 Official announcement & context here:
https://oasis.net/blog/strategic-investment-arm-semiliquid

🧠 Why This Is Interesting (Beyond the Headlines)

Most DeFi lending today assumes:
You move collateral on-chain
Smart contracts fully control assets
Everything is transparent by default

That works great for permissionless systems but it’s a non-starter for many institutions.

SemiLiquid is tackling a real bottleneck: how do you make tokenized assets credit-ready while still respecting custody, compliance, and privacy requirements?

Their approach focuses on:

Custody-native credit activation (assets stay with qualified custodians)
Programmable credit rules instead of raw smart-contract liquidation logic
Bridging traditional finance workflows with on-chain settlement
This is much closer to how institutional credit actually works.

📉 Why RWAs Need This

Tokenized real-world assets (RWAs) are growing fast treasuries, funds, private credit but liquidity and capital efficiency are still weak.

Without credit rails:

Tokenized assets just sit idle
Institutions can’t easily leverage positions
On-chain finance stays shallow
Credit infrastructure like this is what turns tokenization into financial utility.

🌍 Bigger Picture

This move fits into a broader trend we’re seeing across crypto:
Institutions want on-chain settlement, not on-chain custody risk
Privacy and enforceability matter more than composability
Infrastructure > hype cycles

Instead of flashy DeFi primitives, this is about plumbing and plumbing is what scales.

🔗 Links
• Blog announcement (strategic investment & SemiLiquid):
https://oasis.net/blog/strategic-investment-arm-semiliquid
• SemiLiquid / PCP overview:
https://pcp.co

Top comments (2)

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caerlower profile image
Manav

This is a strong example of DeFi adapting to institutional reality.

Custody-native credit is a much more realistic path than forcing institutions into fully transparent, contract-controlled collateral. Credit, balance sheets, and risk logic can’t be public if RWAs are going to scale.

Oasis backing SemiLiquid makes sense in that context, confidential compute isn’t a feature here, it’s a requirement. Less hype, more plumbing, and that’s usually where real adoption begins.

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savvysid profile image
sid

This feels like a big step toward making DeFi actually usable for institutions. Custody-native credit is how RWAs move from “tokenized but idle” to productive capital. Interesting to see this paired with privacy-aware infrastructure instead of the usual fully transparent DeFi assumptions.