Valinor Digital, a modern credit institution operating at the intersection of credit and blockchain, announced it has raised $25 million in a seed funding round to expand its “Open Credit” platform. The round was led by Castle Island Ventures, with participation from investors across credit, fintech, and crypto, as well as continued backing from Paul Prager and Nazar Khan of TeraWulf.
Founded in 2025 and headquartered in New York, Valinor aims to modernize credit markets through blockchain-enabled infrastructure. The company is focused on reducing friction and costs in lending while expanding access to capital across a broader range of asset classes, borrowers, and geographies. Its approach combines traditional credit underwriting discipline with digitally native operations to originate and invest in institutional credit onchain.
The new capital will be used to support operational growth, strategic hiring, and deployment across an expanding pipeline of credit opportunities. Valinor also plans to continue investing alongside institutional partners as it scales, with a focus on building trust through execution.
Valinor’s platform is designed in part to address a gap in credit availability for stablecoin-based businesses, an area that has historically lacked robust financing options. By leveraging blockchain infrastructure, the company aims to enable more efficient and accessible credit solutions for both borrowers and lenders.
The company was founded by Connor Dougherty and Lily Yarborough, who previously worked together in credit investing roles at Blackstone.
KEY QUOTES:
“Valinor is uniquely positioned to drive this structural market evolution, combining rigorous credit underwriting discipline with digitally-native operations to originate and invest in institutional credit onchain. We’re grateful for the support of our capital partners as we work to deliver a better credit product to both borrowers and investors.”
Connor Dougherty, Chief Executive Officer, Valinor Digital
“For years, there’s been a lack of viable credit options for stablecoin-based businesses. Valinor’s credit investing expertise and deep understanding of blockchain-based assets position them to catalyze fintech growth globally and open access for new lending partners.”
Sean Judge, General Partner, Castle Island Ventures
