Key Takeaways
- • Hashed, a prominent crypto venture capital firm, has anchored a $300 million private credit fund managed by Thoro Capital Management, signaling institutional capital redeployment from token investment toward credit infrastructure for digital asset firms.
- • Thoro Capital will underwrite borrowers as operating businesses using covenant-based underwriting rather than crypto-collateral models, with loans denominated in U.S. dollars but settled in stablecoins—mirroring traditional private credit practices that emerged post-2008 financial crisis.
- • The fund targets a financing gap where traditional banks cannot lend due to regulatory capital constraints, while existing crypto lenders rely solely on asset-backed collateral, leaving profitable infrastructure firms dependent on expensive short-term secured borrowing.
- • Tokenized private credit represents the largest real-world asset category onchain at $14 billion in cumulative origination, compared to the $3+ trillion traditional private credit market, presenting significant growth potential through credit underwriting rather than token issuance.
- • Hashed's $300 million commitment follows the firm's recent acquisition of financial services permission from Abu Dhabi Global Market, establishing operational presence in the UAE's regulated financial hub.
Summary
Hashed, a established cryptocurrency venture capital firm, has anchored a $300 million private credit fund targeting institutional digital asset companies, marking a strategic pivot toward credit infrastructure rather than equity or token-based investment. The fund is managed by Thoro Capital Management, founded by Mohamed Hamdy, an Abu Dhabi-based investor and co-founder of Further Ventures. This initiative reflects broader institutional appetite to build traditional financial infrastructure within blockchain ecosystems.
The fund's operating model departs significantly from existing crypto lending practices. Thoro will underwrite borrowers as operating businesses using covenant-based structures—financial conditions borrowers commit to for the loan duration—rather than assessing creditworthiness primarily through cryptocurrency collateral values. Loans will be denominated in U.S. dollars but settled in stablecoins, creating a hybrid structure that maintains blockchain settlement while pricing risk on business fundamentals. This approach mirrors the evolution of traditional private credit markets following the 2008 financial crisis, when specialized fund managers filled lending gaps left by retrenching commercial banks.
Hashed frames the initiative as addressing a critical institutional financing bottleneck in cryptocurrency markets. Traditional banking institutions face regulatory capital requirements that effectively prohibit exposure to digital asset firms, while existing crypto lenders operate exclusively on collateral-backed models unsuitable for profitable, audited market infrastructure companies. These infrastructure businesses currently resort to expensive, short-term collateralized borrowing despite strong operational fundamentals. The new fund targets this underserved segment by applying conventional credit underwriting to digital asset institutions.
The fund's scale potential is substantial. Tokenized private credit currently represents the largest real-world asset category by cumulative onchain origination at over $14 billion in total loans. The broader traditional private credit market exceeds $3 trillion, positioning the onchain figure as a nascent segment with significant expansion runway. Hashed's bet is predicated on credit-based vehicles—rather than token issuances—bridging this valuation gap.
The anchor investment follows Hashed's receipt of financial services permission from Abu Dhabi Global Market, the UAE's designated financial hub. This regulatory authorization establishes operational legitimacy for the fund's activities within a major global financial jurisdiction, differentiating the initiative from unregulated cryptocurrency lending platforms and positioning Thoro Capital within institutional compliance frameworks.
The fund's operating model departs significantly from existing crypto lending practices. Thoro will underwrite borrowers as operating businesses using covenant-based structures—financial conditions borrowers commit to for the loan duration—rather than assessing creditworthiness primarily through cryptocurrency collateral values. Loans will be denominated in U.S. dollars but settled in stablecoins, creating a hybrid structure that maintains blockchain settlement while pricing risk on business fundamentals. This approach mirrors the evolution of traditional private credit markets following the 2008 financial crisis, when specialized fund managers filled lending gaps left by retrenching commercial banks.
Hashed frames the initiative as addressing a critical institutional financing bottleneck in cryptocurrency markets. Traditional banking institutions face regulatory capital requirements that effectively prohibit exposure to digital asset firms, while existing crypto lenders operate exclusively on collateral-backed models unsuitable for profitable, audited market infrastructure companies. These infrastructure businesses currently resort to expensive, short-term collateralized borrowing despite strong operational fundamentals. The new fund targets this underserved segment by applying conventional credit underwriting to digital asset institutions.
The fund's scale potential is substantial. Tokenized private credit currently represents the largest real-world asset category by cumulative onchain origination at over $14 billion in total loans. The broader traditional private credit market exceeds $3 trillion, positioning the onchain figure as a nascent segment with significant expansion runway. Hashed's bet is predicated on credit-based vehicles—rather than token issuances—bridging this valuation gap.
The anchor investment follows Hashed's receipt of financial services permission from Abu Dhabi Global Market, the UAE's designated financial hub. This regulatory authorization establishes operational legitimacy for the fund's activities within a major global financial jurisdiction, differentiating the initiative from unregulated cryptocurrency lending platforms and positioning Thoro Capital within institutional compliance frameworks.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.