GSR commits $100 million to onchain vault business for institutional credit

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GSR commits $100M to vaults

Highlights

GSR committed $100 million as anchor liquidity for Hare's onchain vault products, structured mainly as a credit facility over multiple years.
Curated vaults held $8.6 billion across 788 products and 1.4 million users as of July, highlighting rapid adoption of onchain finance.
Hare launches two Aave-powered products—Hare USD Earn and Hare Gold Earn—amid increasing institutional competition from firms like Galaxy Digital and Two Prime.

Vault launch targets tokenized asset yields

As reported by CoinDesk, crypto trading and market-making firm GSR is building Hare alongside liquidity distribution platform Turtle, with most of its multi-year $100 million commitment structured as a credit facility. The capital is intended to serve as anchor liquidity for Hare's vault products before external investors enter.

Vaults are becoming a larger part of onchain finance because they allow investors to deposit assets into smart contracts while a manager decides how to deploy that capital across lending markets and other strategies. That structure can turn assets held in digital wallets into collateral or yield-generating positions, a use case that is gaining relevance as tokenization spreads across traditional finance.

According to Vaults.fyi data cited in the report, curated vaults held $8.6 billion in assets across 788 products as of July, reaching 1.4 million. Hare Chief Executive Connor Milner said in a statement that GSR's commitment is deployment capital, giving issuers liquidity from day one while showing allocators that GSR is investing its own money in the same vaults.

Institutional competition grows in onchain credit

Hare is starting with two Aave-powered products. Hare USD Earn accepts major dollar stablecoins in a single vault, while Hare Gold Earn allows holders of Paxos tokenized gold products PAXG and PAXGy to earn yield, with Paxos Labs partnering on the gold offering.

GSR and Hare are entering a market where other institutional firms are also expanding onchain credit and yield strategies. Two Prime recently introduced a bitcoin lending vault built on Pareto with $10 million of backing, while Galaxy Digital launched Galaxy Curator, a Morpho-based vault platform that gives Fireblocks' 2,400 institutional clients access to onchain yield strategies.

Hare said it is focusing on the credit side of the market, including collateral assessment, counterparty review and how positions could behave under market stress. Milner previously served as a senior director at London-based DeFi hedge fund Re7 Capital.

Our earlier coverage on emerging-market credit resilience highlighted that, despite geopolitical shocks and higher energy and food costs, credit performance has been stronger than the headlines suggest, with upgrades outpacing downgrades and relatively few defaults. We also noted that elevated borrowing costs and tighter financing conditions remain a key constraint on capital access, keeping funding pressure high even as fundamentals improve.

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