In this episode of the Black Box Podcast, we dive into the architecture of private rails for real-world assets. Paul Mierlo, co-founder of Spout Finance, explains how corporate bond ETFs like LQD are mirrored on Ethereum as permissioned ERC-3643 tokens backed by on-chain identities.

We explore the full pipeline: identity verification, eligibility minting, permissioned tokens, encrypted order flow, and confidential settlement using Intel TDX. Paul breaks down why corporate bonds were chosen first, how proof-of-reserve and audits map to chain, and how CeFi liquidity can meet DeFi programmability—without leaking balances or order flow.

If you’re building private infrastructure for RWAs or curious how zero trust finance actually works, this episode offers a detailed look at the design choices shaping the next generation of financial rails.

Phala Docs: https://docs.phala.network

Spout Finance Docs: https://drive.google.com/file/d/1fklbqmZhgxzIzXN0aEjsf2NFat2QdpFp/view