SemiLiquid Secures Oasis Investment to Expand Institutional DeFi Credit Infrastructure

Cryptocurrency
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SemiLiquid has secured a strategic investment from the Oasis Protocol Foundation, marking a significant milestone in the evolution of institutional decentralized finance. The investment aims to accelerate the development of custody-native credit infrastructure designed specifically for institutions operating within regulated digital asset markets.

This move also represents the launch of Oasis’ strategic investment initiative, shifting beyond ecosystem grants toward long-term capital backing for projects that enable privacy-preserving, scalable blockchain use cases. SemiLiquid is the first company to receive funding under this new framework.

Addressing Institutional Barriers in Decentralized Finance

Institutional adoption of DeFi has long been constrained by structural challenges, including asset custody requirements, regulatory compliance, and the public nature of blockchain data. SemiLiquid’s platform directly addresses these issues by enabling institutions to unlock credit on tokenized assets without transferring custody or exposing sensitive financial information on-chain.

The company’s custody-native credit model allows collateral to remain within regulated custodial environments while still being usable for programmable lending and borrowing. This design aligns with the operational standards of banks, asset managers, and institutional lenders seeking exposure to decentralized markets without compromising security or compliance.

Privacy-Preserving Credit Through Confidential Blockchain Technology

Built using confidential smart contract technology, SemiLiquid’s infrastructure introduces a new layer of privacy into institutional DeFi lending. Credit terms, collateral positions, and risk parameters can be enforced on-chain while remaining shielded from public disclosure.

This approach is particularly relevant for institutions dealing with real-world asset tokenization, where confidentiality and enforceability are essential. By integrating privacy-preserving computation, SemiLiquid enables automated margin management and liquidation mechanisms without revealing sensitive balance sheet data.

Proven Use Case with Tokenized Real-World Assets

SemiLiquid’s technology has already been validated through an institutional pilot involving tokenized money-market fund shares used as collateral. The pilot demonstrated that institutions could continue earning yield on their assets while simultaneously using them to secure credit facilities.

This breakthrough highlighted a key advantage of custody-native credit: capital efficiency. Institutions are no longer forced to choose between asset utilization and security, making decentralized credit markets more attractive for large-scale participants.

Strategic Importance for Institutional DeFi Growth

The investment from Oasis arrives at a time when demand for institutional-grade DeFi infrastructure is accelerating. Tokenized real-world assets are increasingly viewed as the next growth frontier for blockchain finance, but scalable credit systems have lagged behind.

By supporting SemiLiquid, Oasis strengthens its position as a blockchain network focused on privacy, compliance, and institutional adoption. The partnership reflects a broader industry shift toward building decentralized financial systems that meet the operational realities of traditional finance.

What This Means for the Future of Tokenized Credit Markets

With new funding secured, SemiLiquid plans to expand its custody integrations, support additional asset classes, and roll out more advanced credit products tailored to institutional needs. These include programmable lending structures, enhanced risk controls, and future support for under-collateralized credit backed by verified solvency frameworks.

As institutional participation in decentralized finance continues to grow, custody-native credit solutions are expected to become foundational infrastructure. SemiLiquid’s model positions it at the center of this transformation, bridging the gap between traditional financial systems and decentralized, programmable markets.

The Oasis investment not only accelerates SemiLiquid’s roadmap but also signals growing confidence in privacy-first, institution-ready DeFi as a core component of the future global financial system.

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Alex Johnson - Cryptocurrency Expert
Alex Johnson
Chief Editor & Blockchain Analyst
10+ years experience in cryptocurrency journalism. Specializes in Bitcoin, Ethereum, and DeFi markets. Previously worked at CoinDesk and Bloomberg Crypto.
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