Valinor Completes a $25 Million Fundraising Round: Private Credit Goes On-Chain to Accelerate, and the RWA Sector Welcomes Another Key Player

Gate News, a message, from Valinor, an on-chain private credit platform founded by a former Blackstone Group team, announced that it has completed a $25.0 million seed round. The round was led by Castle Island Ventures, with participation from the crypto division under Susquehanna, Maven11, and founders of TeraWulf, among others. The funding will be used to expand the loan book, broaden the customer network, and strengthen the team’s and technology capabilities.

Valinor’s core path is to migrate processes in traditional private credit that rely on manual underwriting and spreadsheet-based collaboration onto the blockchain, automating capital routing, term execution, and repayment triggers through smart contracts. This model turns what used to be fragmented and inefficient back-office operations into on-chain logic execution, thereby improving transparency and settlement efficiency while reducing the risk of human error.

In terms of business rollout, Valinor has not directly moved into the entire enterprise credit market. Instead, it prioritizes serving crypto companies, positioning itself as a testing ground for on-chain underwriting and risk-control models. At present, the platform has already provided loans to multiple fintech and crypto enterprises, indicating that it is not just stuck in the concept stage but has entered an active operational cycle.

From an industry trend perspective, private credit is becoming one of the important directions for putting real-world assets (RWA) on-chain. Compared with traditional quarterly disclosures and low-frequency data updates, on-chain structures enable near real-time monitoring of collateral and cash flows, giving lenders greater information transparency. At the same time, the hybrid model of “off-chain underwriting + on-chain execution” is gradually becoming the mainstream path for institutions’ DeFi exploration.

However, Valinor still needs to address key challenges: how to verify the stability of smart contracts in complex credit scenarios, and how to persuade traditional capital that on-chain mechanisms optimize rather than amplify risk. If this model can be replicated at scale, the significance of its funding may go beyond a single project and become an important signal for rebuilding the private credit infrastructure.