Birch Hill Holdings has raised $4 million in seed funding to develop infrastructure for bringing U.S. private credit products onto public blockchains. The round was led by Multicoin Capital with participation from ParaFi Capital, Castle Island Ventures, and Nascent. The financing brings Birch Hill’s total funding to $6.5 million.
The New York-based financial services company assesses, structures, and distributes credit through three divisions: Vaults, Strategies, and Enterprise.
Within Vaults, Birch Hill serves as an official curator on Morpho, an onchain lending protocol, where it evaluates credit opportunities and establishes risk parameters.
Its Strategies division is developing products including Flagship Vaults and Birch Hill Absolute Value, an onchain credit strategy.
The company believes blockchain-based credit can lower administrative costs and improve transfer processes while providing clearer frameworks for eligible digital assets.
Within Enterprise, Birch Hill has applied to FINRA for broker-dealer membership.
If approved, the company plans to distribute private credit offerings to verified accredited investors through its own platform.
Birch Hill intends to eventually securitize pools of U.S. loans beginning with multifamily, agriculture, and energy credit.
The financing also supports an eight-person team that includes several executives hired from Yearn and Gauntlet.
Birch Hill said it is pursuing regulatory engagement as a core part of its strategy and met with the SEC Crypto Task Force in August regarding tokenized credit issuance.
The company views institutional adoption as dependent on establishing structures recognizable to banks, insurers, fiduciaries, and other regulated capital providers.
Birch Hill said its longer-term goal is to connect traditional loan originators with onchain capital while handling underwriting, structuring, distribution, and risk management through a single platform.
KEY QUOTES:
“Loan originators need new sources of capital, and onchain lenders need credit they can trust. We assess, structure and distribute that credit in one firm, so we can bring it onchain with less cost and friction than a traditional deal.”
Bhavin Vaid, CEO Of Birch Hill
“Private credit is a fragmented, relationship-driven market, which makes it one of the clearest opportunities to build new financial infrastructure onchain.”
Shayon Sengupta, General Partner And Co-Head Of Venture At Multicoin Capital
