Crypto VC Hashed Backs New Digital Asset Credit Fund

Hashed leads new digital asset credit fund

Crypto venture capital firm Hashed is anchoring a new private credit fund targeting $300 million in capital. The fund is designed to lend money directly to digital asset institutions, addressing a shortage of available financing in the sector.

Thoro Capital Management will manage the fund, while Hashed will serve as the primary backer. The loans will be issued in U.S. dollars and settled using stablecoins, which are digital currencies designed to hold a steady value, typically pegged to the U.S. dollar.

Focus on business fundamentals over collateral

The new fund plans to use a lending approach called "covenant-based" underwriting. Unlike traditional crypto lenders that often require borrowers to pledge assets as security, this method evaluates the borrower as an operating business.

According to Thoro Capital, lenders will assess the company's financial health, cash flow, and management team. They will also set "covenants," which are financial conditions the borrower agrees to maintain during the life of the loan.

Hashed stated that this approach aims to fix a "critical financing bottleneck" in the digital asset industry. The firm noted that many profitable, audited market infrastructure firms are currently forced to rely on expensive, short-term borrowing because traditional banks are restricted by regulatory capital requirements.

Market context and growth

Thoro Capital set its $300 million target based on market demand and the feasibility of its strategy. Hashed highlighted that tokenized private credit has become the largest category of real-world assets on-chain, with over $14 billion in total loans originated. However, this amount remains small compared to the traditional private credit market, which is valued at more than $3 trillion.

Hashed's involvement in this fund follows its recent acquisition of a financial services license from the Abu Dhabi Global Market. The firm also recently signed an agreement with the Abu Dhabi Investment Office to help South Korean investors expand into the UAE.

Key facts

• Hashed is the primary backer of a new $300 million digital asset private credit fund.
• The fund is managed by Thoro Capital Management, led by Mohamed Hamdy.
• Loans will be settled via stablecoins and based on business fundamentals rather than just asset collateral.
• Tokenized private credit has grown to over $14 billion in on-chain originations.

Source

• The Block