Analysis
Birch Hill Holdings has raised a $4 million seed round led by Multicoin Capital, bringing the company's total funding to $6.5 million, to develop infrastructure for bringing U.S. private credit products onto public blockchains, according to the company's announcement.
What Birch Hill Holdings does
Birch Hill is a New York-based financial services firm, led by CEO Bhavin Vaid, who began his career in structured credit at Goldman Sachs, per Decrypt's coverage of the round. The company assesses, structures and distributes credit through three divisions -- Vaults, Strategies and Enterprise -- and operates as an official curator on Morpho, an onchain lending protocol. It is developing Flagship Vaults and a strategy called Birch Hill Absolute Value, and has applied to FINRA for broker-dealer membership with plans to securitize U.S. loans, starting with multifamily, agriculture and energy credit. "Loan originators need new sources of capital, and onchain lenders need credit they can trust," Vaid said.
Birch Hill Holdings funding history
Birch Hill's disclosed rounds, oldest first:
“It is developing Flagship Vaults and a strategy called Birch Hill Absolute Value, and has applied to FINRA for broker-dealer membership with plans to securitize U.S.”
- Pre-seed -- $2.5M, structured as a Simple Agreement for Future Equity, co-led by ParaFi Capital and Castle Island Ventures with Nascent, FalconX Ventures, JST Digital and Flowdesk participating; no valuation disclosed. Source
- Seed (Oct 29, 2026) -- $4M led by Multicoin Capital, with ParaFi Capital, Castle Island Ventures and Nascent returning. Source
The two rounds bring Birch Hill's combined disclosed funding to $6.5 million in under a year.
Who invested in Birch Hill Holdings
Multicoin Capital led the seed round, with ParaFi Capital, Castle Island Ventures and Nascent returning as participants from the earlier pre-seed. Shayon Sengupta, general partner and co-head of venture at Multicoin Capital, called private credit "a fragmented, relationship-driven market, which makes it one of the clearest opportunities" for onchain infrastructure. ParaFi Capital and Castle Island Ventures, which co-led the $2.5 million pre-seed, stepped back from leading this round but stayed on the cap table alongside Nascent; pre-seed participants FalconX Ventures, JST Digital and Flowdesk were not named in the new round's disclosure.
Onchain private credit market and competitors
Birch Hill's curator role sits inside Morpho, whose own blog reports that total deposits of real-world assets on the protocol grew from nearly zero at the start of 2025 to $400 million by the end of the third quarter of 2025, a rapid expansion that underpins the thesis crypto-native investors are funding here. Multicoin Capital's existing portfolio includes Kalshi, the prediction-market exchange that Pulse has covered extensively, giving the firm a pattern of backing regulated-adjacent financial infrastructure rather than purely speculative crypto bets. Birch Hill's pending FINRA broker-dealer application, if approved, would let it distribute securitized credit offerings to accredited investors directly through its own platform, a step beyond what most onchain-lending startups attempt, since it brings the company under direct securities regulation rather than operating purely as a crypto-native protocol participant.
What to watch next
Watch whether Birch Hill's FINRA broker-dealer application is approved, since that determines whether the company can actually distribute the securitized credit products its roadmap describes, and watch whether Morpho's real-world-asset deposit growth continues at the pace that drew Birch Hill's backers in the first place.