On-chain private credit startup Valinor completes $25 million seed round financing, led by Castle Island Ventures

Valinor, a blockchain private credit startup co-founded by former Blackstone employees, announced the completion of a $25 million seed round financing. This round was led by Castle Island Ventures, with participation from the crypto division of Susquehanna, Maven11, and the founder of TeraWulf, a Bitcoin mining company transitioning to artificial intelligence.

Valinor's core business is to put the private credit process on-chain. Traditional private credit institutions rely on manual verification and spreadsheet collaboration when handling revolving credit facilities and other operations. Valinor plans to replace these processes with smart contracts to achieve automated routing of funds and condition-triggered execution.

Both co-founders have backgrounds in traditional finance, having worked in banks and Blackstone's private credit division before transitioning to the crypto industry in 2022. Initially, Valinor focuses on providing loans to crypto companies, and later plans to introduce blockchain technology into the loan process to enhance efficiency. Currently, the company has completed lending for several fintech and crypto companies using blockchain technology.

The funds raised in this round will be used to expand the loan scale, broaden the customer base, and increase the team size, which currently consists of 6 employees.