
What you can actually do with a tokenized fund today
Andrei Yurkevich, Protofire
Moment at 42:13Episode 5 · TradFi Goes Onchain, Part 2: From Pilots to Market Infrastructure
Asset managers and funds run their mandates on-chain with custody in client-owned vaults, compliance enforced at the protocol level, and reserves attested continuously, so allocators keep control and transparency end to end. Not a rented platform; a stack you own.

Reviewed by Diego Torres, Offer Owner at ProtofireLast reviewed: October 2026
On-chain asset management is running a fund mandate (allocation, custody, compliance, valuation, and investor reporting) on public or permissioned blockchains instead of, or alongside, traditional rails. For an asset manager or allocator, going on-chain is an operations decision more than a trading one: where assets are held, who is allowed to hold them, how reserves are proven, how downside is bounded, and how positions are reported to a risk committee and to LPs. Most vendors hand you a closed platform and ask you to move onto theirs. We don't; we build the infrastructure on your own stack. Protofire is a blockchain engineering company that has shipped 250+ projects since 2016, across 60+ networks and 95+ protocols. For funds, asset managers, allocators, custodians, and wealth platforms allocating on-chain, we deliver the pieces a mandate actually depends on: client-owned private vault infrastructure (VaultOS, ERC-4626/7540), allocator-grade security and audits, Proof-of-Reserve and NAV reporting, downside protection (RWArmor), compliant secondary liquidity (dOTC), and diversified on-chain yield, built as production systems, not reference architectures.
Every layer a mandate depends on, built on your stack, not a rented platform.
Client-owned ERC-4626/7540 vaults (VaultOS), not a rented platform
Share classes with async subscribe and redeem (ERC-7540)
KYC, eligibility, and transfer-restriction enforcement for regulated mandates
Reserve attestation, NAV oracles, and allocator-grade reporting
Parametric cover for tokenized positions (RWArmor)
Compliant OTC for large holders (dOTC)
Diversified multi-chain staking yield and index strategies
Security review before capital moves
Multisig operational controls on Safe, which we deployed on 120+ EVM networks
For an allocator, custody is the first question a risk committee asks. We build client-owned private vault infrastructure with VaultOS: an ERC-4626/ERC-7540 vault core plus a policy and control plane you own, so no shared protocol, third-party custodian, or external operator sits as the governance root of your assets. Roles are separated the way institutional operations require: distinct, bounded permissions for fund operators, valuation providers, risk guardians, and admins, instead of a single owner key or one undifferentiated multisig. ERC-7540 adds the asynchronous subscription and redemption flows that funds and credit pools actually need (request, settle, and NAV-gate entry and exit), which public vaults and manual scripts cannot do at institutional quality. Governance runs on Safe, which Protofire deployed on 120+ EVM networks, where it secures $2B+.
What is VaultOS? VaultOS is Protofire's client-owned private vault infrastructure for funds and allocators: an ERC-4626/ERC-7540 vault core paired with a policy and control plane the fund owns outright, rather than a shared protocol or a rented platform. It packages the controls institutional operations require into a P1-P5 module set spanning governance, policy, permissions, approvals, transfer restrictions, and redemption controls. Permissions are separated into distinct, bounded roles for fund operators, valuation providers, risk guardians, and admins, so no single owner key governs the assets. ERC-7540 supplies the asynchronous subscription and redemption flows funds and credit pools depend on (request, settle, and NAV-gate entry and exit) that public vaults cannot deliver at institutional quality. A Safe sits at the governance layer, while manager, curator, and operator tooling adds monitoring, dashboards, and bounded automation that rebalances within the policy the fund sets but can never exceed it. The fund keeps custody and control end to end.
A regulated mandate cannot hold a token that anyone can receive. We enforce eligibility on-chain for the whole life of a position, not at issuance alone: permissioned token standards (ERC-3643), an on-chain identity registry, and modular transfer rules for jurisdiction, accreditation, lock-ups, and holder caps, with an agent/issuer role model so your transfer agent keeps control after distribution. We integrate your KYC/KYB provider rather than taking custody of identity, and contracts are hardened in pre-audit before any capital moves. We maintain Solhint, the open-source Solidity linter used by 1M+ developers, and publish our audit reports, the allocator-grade security bar institutional capital expects. For Swarm Markets, a BaFin-licensed DEX at launch where only KYC-verified wallets can trade crypto and tokenized real-world assets across 50+ trading pairs, we built the DEX core and subgraph.
Institutional capital sits on the sidelines until downside is quantified. RWArmor, our live parametric protection layer for tokenized real-world assets, closes that gap: automated, oracle-triggered coverage for the operational events that audits don't prevent (redemption freezes, custody failures, NAV deviation, and operational breakdowns), with predefined triggers verified by multi-oracle consensus and on-chain payouts, not a manual claims process. It's built on Atomica and live with LandX. For an allocator, that's a structural answer to the question that most often blocks a risk committee from approving a tokenized-credit or treasury allocation: what happens if something goes wrong operationally? Protected positions also trade at tighter spreads, so protection improves liquidity as well as safety.
A position you can't exit isn't an allocation a fiduciary can hold. dOTC is our permissioned, KYC-gated decentralized OTC market for tokenized RWAs: a peer-to-peer secondary venue, live in production on Polygon and BNB Chain, with a yield toolset that rewards liquidity providers and market makers for keeping active offers on your asset. It gives large holders private execution with on-chain settlement instead of forcing block trades through a public DEX, where they incur slippage, signaling, and MEV exposure. For Swarm Markets, permissionless dOTC lets institutions execute large trades on-chain with private offers and configurable order parameters, the controlled, compliant venue an allocator needs before committing size.
Allocators want diversified, liquid yield without selecting validators, protocols, and liquidity routes network by network. We build the Liquid Staking Index: a multi-chain liquid-staking fund and distribution layer that aggregates LST exposure across emerging proof-of-stake networks through a single vehicle, with a Master Vault, per-network sub-vaults, NAV reporting, fee accrual, and redemption management, designed for distribution to institutional clients through custody partners. The same staking engineering underpins work such as our non-custodial delegation service for KyberDAO, where trustless proxy contracts cut operational costs 50% and supported 7,000+ stakers; Stake Capital built StakeDAO on top of them and reported more than $50M of TVL after launch. Institutional staking yield, without surrendering custody.
Our blueprint library documents fund and treasury architectures already running at regulated institutions: the regime that permits each one, named institutions operating it, and which layers a manager owns, rents, or has us build. Six are drawn for asset managers and corporate treasuries:
A euro MMF with a tokenized register from launch, kept inside UCITS and the MMF Regulation and outside MiCA.
One share class of a fund already in market gains a token; the legal register stays with your transfer agent.
A fund administrator offers clients a tokenized share class as a servicing line, without moving legal title on chain.
An evergreen private credit fund as a transfer-restricted token, optionally pledgeable as collateral by whitelisted holders.
Raise, approve and reconcile stablecoin payments in the treasury system you already use for bank transfers.
Hold crypto on the balance sheet with a licensed custodian, a disclosed key-governance policy and a public disclosure cadence.
Reserve assurance is one of the hardest reporting problems an asset manager faces, and it is one Protofire has solved in production. We have built and operated real-time proof-of-reserve infrastructure at enterprise scale, covering billions in reserves. The engagement pattern is consistent: we open with strategy and assessment workshops that map the existing reporting stack and surface the reconciliation and reporting gaps holding it back, then build from that blueprint. What we deliver is the pipeline that turns attestation from a periodic manual exercise into a continuous, blockchain-backed process: custodian and exchange adapters, oracle feeds, on-chain attestation contracts, compliance dashboards, and automated reporting. That discipline is proven at scale: for a large auditing firm we delivered 15+ proof-of-reserve and real-time attestation deployments for asset-backed tokens. For an asset manager, that is the reserve-assurance and reporting layer a fiduciary and an auditor can both stand behind.
Protofire is a blockchain engineering company with 250+ shipped projects across 60+ networks and 95+ protocols since 2016. For institutional finance we've built the on-chain stack ourselves, VaultOS (client-owned vault infrastructure), RWArmor (parametric protection), and dOTC (RWA secondary market), and we deliver it as an integrator on your own stack, not as a closed platform you rent. We maintain Solhint, the Solidity linter used by 1M+ developers, and deployed Safe on 120+ EVM networks, where it secures $2B+. Clients include Swarm Markets, Chainlink, Aave, MakerDAO, and the Ethereum Foundation. When we recommend a custody, compliance, or reporting architecture for a fund, it's one we already run in production, not a slide.
“On-chain asset management is running a fund mandate on public blockchains instead of traditional rails, with the self-custody and transparent reporting institutional allocators demand.”
We built and operated real-time proof-of-reserve infrastructure at enterprise scale, covering billions in reserves, the reserve-assurance layer a fiduciary and an auditor both stand behind.
We built the DEX core and subgraph for Swarm Markets, a BaFin-licensed DEX at launch where only KYC-verified wallets can trade tokenized real-world assets, and contributed to dOTC, Swarm's OTC venue for large trades.
We deploy audited Safe contracts as institutional-grade custody, with separated operator, valuation, and risk roles so no single key can move a fund's assets.
We rebuilt KyberDAO's delegation with trustless reward contracts, cutting operational costs 50%; Stake Capital built StakeDAO, which drew $50M+ TVL, on top of them.

Andrei Yurkevich, Protofire
Moment at 42:13Episode 5 · TradFi Goes Onchain, Part 2: From Pilots to Market Infrastructure
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