Why R3 Bet Everything on Solana to Bring Wall Street Onchain

After more than a decade building infrastructure for the world's biggest banks and central banks, R3 made a dramatic pivot. Last May, the firm that manages over $10 billion in assets and works with HSBC, Bank of America, and the Bank of Italy announced a strategic partnership with Solana.

The choice wasn't random. R3 co-founder Todd MacDonald spent months evaluating "essentially all the layer ones and layer twos" before landing on what he calls "the Nasdaq of blockchains." His thesis? All markets will eventually go onchain, and Solana is purpose-built for high-performance capital markets, not general experimentation.

But here's the twist: R3 isn't just moving existing products onchain. They're redesigning finance from the ground up.

The Liquidity Problem Nobody's Solving

Hundreds of billions in real-world assets are already tokenized, but there's a dirty secret: to access institutional-grade yields, capital still has to move offchain. "Liquidity, not tokenization itself, is the real bottleneck," MacDonald explained.

The breakthrough moment will come when tokenized real-world assets can serve as credible collateral alongside native crypto assets. Today's limited liquidity and rigid permissioning structures keep DeFi investors on the sidelines. "The beating heart of DeFi is borrow and lend," he said. Without that, tokenization is just expensive theater.

R3 is starting where onchain appetite already exists. As sophisticated investors seek stable returns uncorrelated to crypto's boom-bust cycles, demand is shifting toward assets that offer consistent yield without the volatility.

Private Credit Meets DeFi

R3's strategy centers on high-yielding products, with private credit as the cornerstone. "You need a headline yield to get attention," MacDonald noted, pointing to returns around 10% that resonate with onchain investors.

But private credit traditionally offers quarterly liquidity or "by appointment" access. R3's challenge: package these assets in DeFi-native structures without sacrificing returns, liquidity, or composability.

Trade finance presents an even bigger opportunity. "If DeFi allocators really leaned into trade finance, the supply from the traditional world is enormous," MacDonald explained. The market's scale and potential for sustainable returns make it a natural fit, despite its notorious opacity and fragmented structure.

Corda Protocol: The 2026 Launch

R3's answer is the Corda Protocol, launching in the first half of 2026. Built natively on Solana, it offers professionally curated, real-world-asset-backed yield vaults that issue liquid, redeemable tokens.

The protocol includes a native liquidity layer enabling instant swaps out of otherwise illiquid assets. This unlocks their use as collateral at scale—the missing piece that keeps institutional assets trapped in traditional markets.

Stablecoin holders will access tokenized debt instruments, funds, and reinsurance-linked securities without sacrificing DeFi-style liquidity or composability. Early demand signals are strong: over 30,000 pre-registrations to date.

The Institutional Migration

MacDonald sees a fundamental shift happening on Solana toward capital formation and allocation, rather than pure speculation. "We're trying to bring these assets onchain and package them in a DeFi-native way," he said, working directly with existing allocators to improve access.

The firm is already partnering with household-name investment managers alongside asset owners from factories to shipping firms who view tokenization as a new distribution channel. The goal isn't mirroring offchain products but redesigning them to be investable, tradable, and composable onchain.

The Regulatory Wild Card

What R3 isn't discussing much is regulation. Bringing institutional-grade assets onchain at scale will inevitably attract regulatory scrutiny, especially as these products compete directly with traditional financial products.

The firm's institutional relationships may provide some protection, but questions remain about how regulators will treat DeFi-native structures that offer traditional asset exposure. Will they be treated as securities? How will cross-border compliance work when assets flow freely across blockchain networks?