Institutional crypto derivatives provider Rails has launched onchain vaults on the Stellar to give brokerages and fintechs access to perpetuals trading with segregated collateral and cryptographic proofs.
The company said the Stellar-based “Institutional-Grade Vaults” separate trade execution from custody, with client assets held in audited smart contract vaults rather than on Rails’ balance sheet.
“The critical difference is custody and verifiability,”
Said Rails chief executive, Satraj Bambra, adding that profit and loss, fees and liabilities are committed onchain every 30 seconds for independent reconciliation.
Rails said the design aims to reduce counterparty risk by ring-fencing client collateral from market-making capital, addressing failures seen at collapsed exchanges such as FTX.
The firm chose Stellar for its fast settlement finality and long-standing use by banks and tokenised asset platforms, which Bambra said is critical when institutions deploy large amounts of capital.
Rails has processed more than $3.4 billion in trading volume to date and is registered with the Cayman Islands Monetary Authority, while beginning its registration process with the US National Futures Association.