RWA Yield

While City Neobank supports DeFi-native yield strategies, it also provides tokenized real-world asset yield assets, specifically the ones that are short-duration, sustainable opportunities exclusively available on-chain through City Protocol's institutional asset origination partnerships.

The approach follows a product design pattern already proven in on-chain finance: curated partnerships with established asset managers, each product structured as a named token that makes complex institutional strategies legible to everyday investors. The on-chain private credit market has validated this model at scale, with leading protocols growing AUM by 790% in a single year to $4.4 billion and institutional credit infrastructure now supporting over $10 billion in collateral value on-chain.

City Neobank applies this model to alternative on-chain RWAs, selected against three core criteria:

First, Short Duration. RWA Vaults focus exclusively on short-duration yield assets. Vesting periods typically range from weeks to months, giving users faster access to liquidity and reducing long-term exposure to market shifts.

Second, Sustainable Yield. RWA Vaults target 10%–20% stable APY. At launch, yield is driven primarily by tokenized private credit, such as enterprise loan portfolios that are risk-assessed and structured for on-chain distribution through institutional platform partnerships. As the platform matures, additional segments of alternative finance will be introduced.

Third, Risk Mitigation. Every RWA Vault is protected by three layers of risk management: full auditing of both the underlying asset and the originating platform; an on-chain risk management layer that enforces diversification requirements and allocation limits; and a dedicated security reserve designed to absorb losses from potential black swan events driven by broader market or geopolitical uncertainty.