What is Rayls (RLS)?

By CMC AI
05 February 2026 10:00PM (UTC+0)
TLDR

Rayls (RLS) is a blockchain ecosystem specifically engineered to bridge traditional finance (TradFi) and decentralized finance (DeFi) by providing compliant, private infrastructure for banks and financial institutions.

  1. Bridges Two Financial Worlds – It aims to unlock trillions in TradFi liquidity for the on-chain economy by meeting strict institutional requirements for privacy, compliance, and control.

  2. Hybrid Public-Private Architecture – The system combines a permissionless public EVM chain with private, institution-operated nodes, enabling secure interoperability between closed and open networks.

  3. Native Token with Deflationary Mechanics – The $RLS token is used for staking, governance, and paying transaction fees, with 50% of all fees automatically burned to create scarcity as network usage grows.

Deep Dive

1. Purpose & Value Proposition

Rayls exists to solve a critical gap: major financial institutions see the efficiency of DeFi but cannot use public blockchains due to non-negotiable needs for compliance (KYC/KYB), transaction privacy, and full control over their infrastructure (Rayls). The project’s core value proposition is to serve as a compliant rail that allows these institutions to tokenize real-world assets like bonds or deposits privately, then connect to public DeFi for distribution and liquidity. Its goal is to onboard the “6 billion banked population” and over $100 trillion in traditional finance liquidity onto blockchain.

2. Technology & Architecture

The platform uses a hybrid, modular architecture. At its core are Privacy Nodes – private, permissioned EVM blockchains that institutions run on-premises. These can connect to form Private Networks for inter-institutional settlement. All nodes can interoperate with the Rayls Public Chain, a permissionless Ethereum-compatible Layer 1. This design ensures privacy and control where needed, while maintaining access to open liquidity. Advanced cryptography, including zero-knowledge proofs (zk-SNARKs) and homomorphic encryption in the Enygma protocol, enables confidential transactions that can still be audited for compliance.

3. Tokenomics & Governance

The $RLS token has a fixed maximum supply of 10 billion. Its primary utilities are validator staking, governance voting, and settling all transaction fees across both public and private networks. A key deflationary mechanism is the automatic burning of 50% of every fee paid in RLS; the remaining 50% rewards validators and funds ecosystem development (Rayls). This directly ties token scarcity to network usage. Governance is initially managed by the Rayls Foundation, with a planned transition to a DAO where RLS holders vote on upgrades and grants.

Conclusion

Rayls is fundamentally a regulated financial infrastructure project, building a hybrid blockchain system where institutional privacy and public DeFi liquidity can securely interact. Its success hinges on widespread adoption by banks. Will its tailored architecture prove to be the catalyst that brings mainstream finance on-chain?

CMC AI can make mistakes. Not financial advice.