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On-chain private credit startup Valinor has completed a $25 million seed round financing, led by Castle Island Ventures

According to Fortune, Valinor, a blockchain private credit startup co-founded by former Blackstone employees, announced the completion of a $25 million seed round financing. This round was led by Castle Island Ventures, with participation from the crypto division of Susquehanna, Maven11, and the founder of TeraWulf, a Bitcoin mining company transitioning to artificial intelligence.Valinor's core business is to put the private credit process on-chain. Traditional private credit institutions rely on manual verification and spreadsheet collaboration when handling revolving credit lines and other businesses. Valinor plans to replace these processes with smart contracts to achieve automated routing of funds and condition-triggered execution.Both co-founders have traditional finance backgrounds, having worked in banks and the private credit division of Blackstone before transitioning to the crypto industry in 2022. Initially, Valinor focuses on providing loans to crypto companies, and later plans to introduce blockchain technology into the loan process to enhance efficiency. Currently, the company has completed lending for several fintech and crypto companies through blockchain technology.The funds raised in this round will be used to expand the loan scale, broaden the customer base, and increase team personnel, with the current number of employees at 6.

Michael Saylor: The next phase of the cryptocurrency industry will be "digital credit"

According to Forbes, Michael Saylor has transformed Strategy (formerly MicroStrategy) from a little-known enterprise software company into the world's largest corporate holder of Bitcoin over the past six years, accumulating over 762,000 BTC, worth billions of dollars.At the digital asset summit held in New York yesterday, Saylor discussed "digital credit" and views it as a core opportunity. The STRC (nicknamed "Stretch") he introduced is a preferred stock product positioned by Strategy as a unique tool in the crypto space: a low-volatility, high-yield asset designed to be included in fixed-income portfolios. Saylor mentioned that the product has a yield of 11.5%, a volatility of about 2%, and a Sharpe ratio close to 4. The nominal size of the product reaches $5 billion, with an average daily liquidity of $224 million, already achieving institutional-level trading scale.After the meeting, he stated, "Digital credit is the most attractive credit tool in the world. If you can create a product with a Sharpe ratio of 4, it should be in every portfolio."Meanwhile, institutional funds are flowing back into Bitcoin through regulated channels, with the U.S. spot ETF recording the longest net inflow period this year. However, the proportion of crypto assets in U.S. managed wealth is still below 0.5%—and Saylor is trying to bridge this gap. For yield-seeking investors, a tool that uses Bitcoin as collateral, has bond-like volatility, and offers double-digit returns opens up a whole new investment narrative.
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