FalconX, a leading digital asset prime brokerage for the world’s top institutions, announces its partnership with Pareto, a private credit marketplace that connects institutional lenders and borrowers, offering scalable yield opportunities and bridging institutional capital with on-chain credit markets.
FalconX has launched a Credit Vault on Pareto, curated by M11 Credit, to enhance its on-chain liquidity infrastructure. This partnership is a significant milestone in advancing the adoption of blockchain-based credit markets, bridging the gap between traditional and on-chain finance.
The FalconX Vault operates as an evergreen, fixed-rate loan, channeling funds into the New York-based prime broker to facilitate financing to trading firms, hedge funds, and other institutional counterparties. The vault is backed by multiple structural protections, including an equity tranche, transaction-level collateralization, and a real-time risk engine to safeguard capital.
“We are pleased to work with Pareto and M11 Credit to access another pool of capital that supports our institutional prime services offering, which includes trading, credit, and holistic treasury management solutions”, said David Martin, Head of Credit and Financing at FalconX
Unlike traditional DeFi lending models, Credit Vaults ensure full fund utilization throughout each lending cycle, aligning the interests of both liquidity providers and borrowers. For the first time, Credit Vaults allow DeFi participants to lend protocol-to-business (P2B) under the same transparent terms as institutional underwriters. By bringing private credit on-chain, the product enhances scalability, transparency, and efficiency, reducing settlement costs, automating processes, and fostering deeper TradFi–DeFi synergies.
M11 Credit, the credit arm of investment firm Maven 11, is responsible for administering and servicing the Credit Vault, as well as overseeing risk reporting activities in its role as vault curator. To enhance transparency, monthly reports will be provided to liquidity providers, offering detailed insights into the allocation of lent funds.
“This collaboration represents a key evolution in bridging institutional capital with on-chain credit markets. By leveraging Pareto’s secure infrastructure, we are creating a scalable and transparent lending framework that aligns with institutional risk standards. The launch of this vault underscores the increasing demand for compliant, capital-efficient solutions that bring long-term stability to the digital asset space”, said M11 Credit Director Peter Salyga.
FalconX Credit Vault is built on Pareto’s next-generation infrastructure, featuring a fixed interest rate model updated on a monthly basis. A key innovation is the adaptive callback period for lenders – designed to enhance capital efficiency – whereby liquidity providers benefit from an accelerated recall mechanism in the event of significant interest rate declines. This feature allows lenders to maintain agile exposure while optimizing risk-adjusted returns. Additionally, the vault implements standardized loan agreements and mandates comprehensive KYC verification for all lenders, ensuring a fully compliant, institutional-grade lending environment.
“We’re thrilled to work with FalconX to bring the benefits of on-chain financing to their platform and users. Through this collaboration, FalconX showcases its leadership as one of the most innovative parties in the digital asset and DeFi industry.
The launch of this credit vault highlights the growing demand for institutional-grade onchain solutions that deliver stability, liquidity, and utility at scale. It also signifies a critical milestone in a shared vision to unlock a new era of onchain credit for a global user base,” said Matteo Pandolfi, co-founder and CEO of Pareto.
For more information, visit FalconX’s Vault.
About FalconX
FalconX is a leading digital asset prime brokerage for the world’s top institutions. We provide comprehensive access to global liquidity and a full range of trading, financing, and technology services. Our 24/7 dedicated team for account, operational, and trading needs enables investors to navigate markets around the clock. FalconX Bravo, Inc., a FalconX affiliate, was the first CFTC-registered swap dealer focused on cryptocurrency derivatives.
FalconX is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, Tiger Global Management and Wellington Management. FalconX has offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore and Valletta.
About Pareto
Pareto is a private credit marketplace that connects institutional lenders and borrowers, offering scalable yield opportunities and bridging institutional capital with on-chain regulatory-compliant credit markets.
Built on transparency, scalability, and automation, Pareto’s Credit Vaults eliminate bureaucratic friction, reduce operational costs, and enhance capital efficiency. As the financial landscape evolves, Pareto aims to set a new standard for institutional credit with fully automated, data-driven lending solutions.
