Rayls: A Compliant Blockchain Connecting Traditional Finance and Decentralized Finance

What is Rayls

Friends, imagine that we are now living in a digital era, but the financial world is like two parallel tracks: one is the traditional financial system (which we call “TradFi”, such as banks and stock markets), and the other is the emerging decentralized finance (“DeFi”, the various financial applications on blockchains). Although both tracks carry the flow of funds, they rarely intersect, like two different worlds.

The goal of the Rayls project is to build a bridge, or rather lay a “super track”, to connect these two worlds of TradFi and DeFi. Its name “Rayls” is quite interesting: it contains “rails”, symbolizing financial infrastructure, and also “ray”, implying speed and the future. Simply put, Rayls is a blockchain system designed specifically for financial institutions, compatible with the Ethereum Virtual Machine (EVM), which means that many applications and tools developed on Ethereum can run on Rayls.

What makes Rayls unique is its “hybrid” architecture: it has a public and transparent “public chain”, like a public highway visible to all; at the same time, it allows financial institutions to build their own “private networks” or “privacy nodes”, like dedicated internal channels within banks. In this way, banks and financial institutions can enjoy the efficiency and transparency of blockchain, while also meeting their strict requirements for data privacy and compliance.

Project Vision and Value Proposition

Rayls has a very ambitious vision: it hopes to bring the $100 trillion liquidity of traditional finance and billions of global bank users into the blockchain world. Its core value proposition is to solve several major challenges faced by traditional financial institutions when embracing DeFi:

• Compliance: Traditional financial institutions are subject to strict regulation and must ensure all transactions comply with laws and regulations, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) rules. Rayls has integrated these compliance requirements from the very beginning of its design.
• Privacy: The transaction information of banks and clients is highly sensitive and cannot be disclosed at will. Rayls uses advanced cryptographic technology to ensure that when institutions transact on-chain, sensitive information remains protected.
• Scalability: Traditional financial systems process massive volumes of transactions daily, so blockchains must have sufficiently high throughput to meet demand. Rayls’ private network design can process tens of thousands of transactions per second.

In this way, Rayls is not just a blockchain project—it is more like a “Unified Finance” (UniFi) ecosystem, aiming to enable real-world assets (RWA, such as real estate, bonds, etc.) to be tokenized, allow central bank digital currencies (CBDC) to circulate safely and efficiently, and facilitate cross-border payments. It hopes to meet institutional needs while also allowing DeFi innovation and liquidity to benefit a broader financial market.

Technical Features

Rayls has many technical highlights; it is like a precision machine tailored for financial institutions:

Hybrid Architecture

The core of Rayls is a “dual-layer” structure:

• Rayls Public Chain: This is an open, EVM-compatible Layer 1 blockchain (sometimes also described as an Arbitrum Orbit-based Layer 2). It is like a public trading square, where institutions can bring tokenized assets into the DeFi world and enjoy broader liquidity. It also features deterministic finality (transactions are irreversible once confirmed), predictable transaction fees, and inherits security from Ethereum.
• Rayls Private Networks (or Privacy Nodes/VENs): These are permissioned, high-performance EVM blockchains that can be deployed by banks, central banks, or financial market infrastructures (FMIs) on their own servers. They are like exclusive vaults and trading rooms within institutions, handling sensitive internal workflows and transactions, ensuring privacy and compliance.

These two parts are interconnected, meaning institutions can process sensitive transactions in private networks and then bridge eligible assets to the public chain to interact with the broader DeFi ecosystem.

Privacy Protection Technology

To address the strict privacy requirements of financial institutions, Rayls introduces the Rayls Enygma Protocol. This technology uses two cutting-edge cryptographic methods:

• Zero-Knowledge Proofs (ZKP): Imagine being able to prove to someone that you know a secret without revealing any specific information. That’s what zero-knowledge proofs do—they allow parties to prove the validity of a transaction without disclosing details (such as amounts or participant identities).
• Homomorphic Encryption (HE): This is an even more magical encryption method that allows you to compute directly on encrypted data without decrypting it first. This means sensitive data remains encrypted throughout processing, greatly enhancing security.

Together, these technologies ensure transaction confidentiality while still allowing for audit and compliance checks.

Consensus Mechanism

The Rayls public chain adopts a consensus mechanism called Proof of Staked Authority (PoSA). In simple terms, not everyone can participate in block production (which would be slow); instead, a set of reputable validators who have staked RLS tokens are selected to package and validate transactions. These validators are like authorized bookkeepers, jointly maintaining the security and integrity of the public chain.

Tokenomics

The core of the Rayls ecosystem is its native token RLS, which acts as both the “fuel” and “voting right” in this new financial world.

Token Basic Information

• Token Symbol: RLS
• Issuing Chain: Rayls Public Chain (ERC-20 compatible)
• Total Supply: Fixed at 10 billion RLS, meaning no more RLS will ever be created.
• Current and Future Circulation: In the token generation event (TGE) in Q4 2025, 1.5 billion RLS (15% of the total supply) will enter circulation.
• Inflation/Burn: Rayls has a unique deflationary mechanism—50% of all transaction fees in the ecosystem will be permanently burned. This means that as network usage increases, the supply of RLS will gradually decrease, theoretically increasing its scarcity.
• Stablecoin: The Rayls ecosystem also introduces a USD-pegged stablecoin USDr as the token for paying transaction fees, aiming to provide predictable transaction costs.

Token Utility

The RLS token plays multiple roles in the Rayls ecosystem:

• Staking: To become a validator on the Rayls public chain and help secure the network, one must stake a certain amount of RLS. In return, they receive RLS rewards.
• Governance: RLS holders have the right to participate in protocol governance, voting on important protocol upgrades, parameter adjustments, ecosystem funding proposals, and jointly deciding the project’s direction.
• Transaction Fees: Institutional users must pay RLS as infrastructure and settlement fees when transacting and settling on the Rayls network, creating ongoing demand for RLS.
• Ecosystem Incentives: RLS is also used to incentivize developers, provide liquidity, and support other ecosystem-building activities.

Token Allocation and Vesting Information

RLS issuance follows a clear plan, with contributor and investor tokens subject to a four-year vesting period. This helps ensure long-term stability of the token and continued commitment from the project team.

Team, Governance, and Funding

Core Members and Team Features

The Rayls project is developed by Parfin, a provider focused on digital asset infrastructure for institutions, with extensive experience in custody, tokenization, and trading platforms. This shows that the Rayls team has a deep industry background and expertise in serving financial institutions. The team includes cryptography experts and engineers, has developed many innovative technologies, and has published some of its research as scientific papers and GitHub code.

Governance Mechanism

The Rayls project is currently managed by the Rayls Foundation, but its long-term goal is to gradually transfer governance rights to the community. RLS token holders can participate in protocol governance by staking tokens and voting on important decisions. This decentralized governance model aims to ensure project transparency and community participation.

Treasury and Funding Runway

Although the specific size of the treasury and funding reserves has not been disclosed in detail in public materials, Rayls has demonstrated strong market recognition and funding potential through partnerships and pilot projects with several well-known financial institutions. For example, it has partnered with the Central Bank of Brazil for the Drex digital currency pilot, conducted a proof of concept with J.P. Morgan’s Kinexys project, and integrated with Cielo, the largest payment company in Latin America. These collaborations not only bring funding, but more importantly, validate its technology and business model.

Roadmap

The Rayls roadmap clearly shows its development trajectory and future plans from concept to implementation:

Key Historical Milestones and Events

• G20 TechSprint: Rayls’ innovative solution debuted at the G20 TechSprint, showcasing its potential to reshape global payments.
• Central Bank of Brazil Drex Pilot: The Central Bank of Brazil selected Rayls’ privacy solution for its wholesale payment pilot project for the Drex digital currency, marking a key advance for Rayls in the CBDC field.
• J.P. Morgan “Epic” Project: Rayls performed outstandingly in the “Epic” benchmark test of J.P. Morgan Onyx/Kinexys, validating the effectiveness of its privacy-preserving blockchain solution for institutional finance.
• Q4 2025: RLS token generation event (TGE), with 1.5 billion RLS entering circulation.

Future Key Plans and Milestones

• Q3 2025: Integration with Cielo, the largest payment company in Latin America, will go into production for tokenized merchant settlement and credit card receivables.
• Q1 2026: Rayls public chain mainnet is expected to launch, with core token functions (such as staking, governance, protocol fees) fully enabled.
• Ongoing Development: Over time, Rayls will continue to expand its features and gradually open source more components to foster broader community participation and innovation.

Common Risk Warnings

Every blockchain project comes with risks, and Rayls is no exception. When learning about this project, we need to remain objective and cautious. Here are some common risk reminders:

• Technical and Security Risks: Although Rayls uses advanced cryptography and a hybrid architecture, blockchain technology itself is still evolving, and technical risks such as smart contract vulnerabilities, network attacks, and consensus mechanism flaws always exist.
• Economic Risks: The value of the RLS token is affected by market supply and demand, project progress, macroeconomic environment, and other factors, resulting in high price volatility. The actual effect of its deflationary mechanism also depends on the growth of network usage.
• Compliance and Operational Risks: Rayls aims to connect traditional and decentralized finance, which means it must navigate a constantly changing global regulatory environment. Changes in policies and regulations may impact its operations and development. In addition, the speed and scale of institutional adoption directly affect the project’s success.
• Competition Risks: With the rise of RWA tokenization and institutional DeFi, more and more projects and traditional financial giants are entering this track, making competition increasingly fierce.
• Not Investment Advice: This introduction is for project information only and does not constitute any investment advice. The cryptocurrency market is high risk; please do thorough personal research and make decisions according to your own risk tolerance.

Verification Checklist

If you want to learn more about the Rayls project, here are some official and community resources you can consult:

• Official Website: https://www.rayls.com
• Twitter: https://twitter.com/Raylslabs
• RLS Token Contract Address (Etherscan):
  0xB5F7b021a78f470d31D762C1DDA05ea549904fbd
• GitHub Activity: You can search “raylsnetwork” on GitHub to view its codebase and development activity.

Project Summary

In summary, Rayls is an ambitious blockchain project that seeks to address the long-standing gap between traditional finance and decentralized finance. Through its unique hybrid architecture, advanced privacy protection technology, and strong focus on compliance, Rayls provides financial institutions with a secure, efficient, and scalable platform to participate in the wave of digital assets and DeFi.

As the core of the ecosystem, the RLS token tightly links institutional usage with token value through mechanisms such as staking, governance, and fee payments, supplemented by a deflationary mechanism. The project team’s collaborations with heavyweight institutions such as the Central Bank of Brazil and J.P. Morgan also lay a solid foundation for its future development.

However, Rayls’ ultimate success will depend on whether it can achieve large-scale adoption by traditional financial institutions and maintain flexibility in a complex and ever-changing regulatory environment. This is a field full of potential, but also accompanied by challenges. For anyone interested in Rayls, it is recommended to study its official materials in depth and keep track of project progress. Please remember, the above information is for reference only and does not constitute any investment advice.