Thisiscryptos

Future of Confidential RWA Credit

TL;DR
One of the biggest news stories to wrap up 2025, IMO, is Oasis planning to support SemiLiquid for long-term capital deployment with its newly launched strategic investment arm. This program is headed by Mark Kalin, director of operations at Oasis, with 10+ years of venture capital experience. This will showcase how confidential computing enables institutional-grade credit without custody transfer.
Oasis expertise
Let's take a look at Oasis and what it does.
Oasis has established itself as a pioneer of smart #privacy for web3 and AI, with a tech stack that covers on-chain decentralized confidential computation (DeCC) with Sapphire, the first and only production-ready confidential EVM, and off-chain decentralized AI (DeAI) with ROFL, the runtime off-chain logic framework.
Over the years, the primary goal was to establish an ecosystem with Oasis as a base layer, and a vibrant grants program was also in place. Now, the goal has shifted to establishing Oasis as a secure compute layer empowered by strong tech and tools, already developed in Sapphire and ROFL. To that end, the strategic investment portfolio building envisions a paradigm shift in how ecosystems can grow going forward.
SemiLiquid - why and how
SemiLiquid seems like an ideal first partner, as Oasis has always been invested in the vision of a crypto future where assets don't need to sit idle while locked, long before this collaboration went live. For the real-world asset (#RWA) space, this is a revolutionary idea, as there is a critical gap in the credit infrastructure program that essentially underutilizes locked assets.
Interestingly, a key tech to be used in this partnership would be #Liquefaction. Earlier, Oasis had collaborated with researchers at IC3 and Cornell Tech to explore practical implementations of the tech on Sapphire. Both the idea of liquefaction (1, link in comments)) as the future of blockchain asset access and SemiLiquid's concept of unlocking the locked assets (2, link in comments) were first discussed during insightful Privacy Now podcasts.
SemiLiquid has already run a successful pilot program, unveiling the Programmable Credit Protocol (PCP). This program enables credit activation on tokenized assets without removing them from custody. I will delve a little deeper into PCP later.
Essentially, what SemiLiquid does is:
They provide credit on tokenized collateral without the assets needing to be unlocked or removed from custodyThey manage the end-to-end process of collateral locking, automated margin calls, and liquidation triggersThey stay up-to-date with all compliance requirements and standards even as maintaining confidentiality
The last part is where Oasis comes in with its smart privacy vision, where programmable confidentiality logic underlines this crucial state - privacy when you need it, and transparency when it matters.
Decoding PCP
As promised, let's take a deeper look into PCP (3, link in comments) and why this is exciting.
SemiLiquid's PCP pilot program involves Franklin Templeton, Zodia Custody, M11Credit, Avalanche, and Presto Labs. It envisions a scenario where there is neither any asset transfer nor any key exposure. This is possible as the entire process of on-chain credit, from originating to managing to settling, takes place with fine-grained control while preserving:
Institutional custodyCredit terms that can be effectively enforcedOn-chain settlement safeguards
Thanks to Sapphire, PCP can efficiently run its Trustless Issuance and Clearing System (TICS).
PCP is one of the first production deployments of liquefaction combined with confidential compute. The use of the tech guarantees confidential access and control without any single party holding the private key. In a nutshell, PCP helps unlock institutional credit rails, tokenized collateral, and assured capital efficiency without capital risk.
Implementation
That Oasis delivers a key piece of the puzzle is easily understandable. Without getting into too much technical details (4, link in comments), using the liquefaction primitive built on top of Oasis Sapphire helps SemiLiquid manage the trade and information control system, which, in turn, monitors policy enforcement, handling of breaches, as well as programmable credit receipts.
The architecture provided by Oasis enables confidentiality through trusted execution environments (#TEEs), and the secure enclaves ensure that all sensitive financial data stays protected throughout the entire credit lifecycle. Combined with Sapphire's on-chain verifiability, this is the backbone of custody and compliance frameworks, boosting institutional-grade guarantees.
The architecture can be simply explained like this:
Custody infrastructure is on one sideCredit counterpart systems are on the other sideSettlement layers are belowSapphire TEEs coordinating trust and security in the middle

Why all this matters
The strategic venture by Oasis in SemiLiquid highlights and brings together two of the most relevant narratives in the crypto and web3 space - #RWA and #privacy. RWA is a tremendously fast-growing sector with incredible potential, while privacy is what everyone is waking up to and taking note of as an essential fabric of the entire blockchain ecosystem, recognizing that since it is not in place by default, it has to be by design.
Oasis has the advantage here of smart privacy expertise because compliance-friendly confidentiality will be the foundation of institutional adoption. Its vision of becoming the secure compute layer, as mentioned, as it focuses on ecosystem growth through strategic investment, will be key to any compute-intensive products to the fold that require confidential data or verifiability at scale.
What do you think of this development, and what other projects and teams building across the spectrum of asset tokenization, identity systems, institutional settlement layers, agentic protocols, etc can benefit from this?