Blockchain firm R3 to bring institutional financial assets on-chain using Solana

US blockchain company R3 is pursuing a strategy to tokenize yield-bearing assets for institutional investors—such as private credit and trade finance—on Solana (SOL) and distribute them across the decentralized finance (DeFi) market.

According to crypto news outlet CoinDesk on the 24th (Korea time), Todd McDonald, co-founder of R3, said, "Our goal is to build a structure where institutional investors can manage and use their financial assets directly on-chain," adding, "Through this, we want to offer DeFi investors stable yield opportunities with lower volatility."

R3 plans to launch real-world-asset-backed yield vaults in the first half of this year via the 'Corda Protocol' built on Solana. The protocol is designed to allow institutional investors to access tokenized bonds, funds, and insurance-linked securities without liquidity constraints, and more than 30,000 people have participated in pre-registration to date.

Explaining why it chose Solana, the company said, "All capital markets will ultimately move to on-chain markets," adding, "We determined Solana is the network best suited to institutional capital markets in terms of throughput and architecture."

R3 stressed that rather than tokenization itself, 'liquidity' is the core challenge for bringing real-world assets on-chain. McDonald said, "The heart of DeFi is lending and borrowing," adding, "The market will truly start to grow when tokenized real-world assets are recognized as collateral on par with crypto assets."