Why Oasis Is Backing Custody-Native Credit Infrastructure

The text highlights the next stage of blockchain adoption focused on institutional usability, emphasizing custody, confidentiality, and compliance. Oasis Network launched a strategic investment arm to support projects addressing these needs, starting with SemiLiquid. SemiLiquid focuses on making credit available for tokenized assets while keeping them within existing custody frameworks. Traditional DeFi credit models don't work for institutions as they require asset movement and public transparency. SemiLiquid's approach uses confidential compute on Oasis Sapphire to enforce credit logic without revealing sensitive data. This technology utilizes Liquefaction, a primitive allowing policy enforcement, private monitoring, and programmable credit receipts. SemiLiquid is in live pilot with prominent players, including Franklin Templeton, covering collateral locking, credit issuance, and repayment processes. Oasis's investment strategy aims to back teams utilizing confidential compute in institutional workflows, focusing on compliance, computational intensity, and confidentiality. Future investments will likely target other areas needing verifiable but private computation like RWAs and identity systems. The investment in SemiLiquid emphasizes that meeting institutions where they are, without compromising on security, is crucial. This initiative views confidential compute as the critical missing element for institutional adoption of tokenized assets and credit markets.