Crypto trading giant GSR's new vault business is a $100M bet on onchain credit
- Crypto trading firm GSR is committing $100 million, mostly through a credit facility, to Hare, a new business creating and managing onchain vaults with the liquidity platform Turtle.
- Hare will initially offer Aave-powered vaults that allow investors to earn yield on major dollar stablecoins and Paxos’ tokenized gold products, with GSR providing anchor liquidity.
- The venture reflects growing institutional demand for vaults that deploy digital and tokenized assets across lending markets and other yield-generating strategies.
Crypto trading and market-making firm GSR is committing $100 million to a new onchain credit business, betting that vaults will become a bigger part of how institutional investors put digital and tokenized assets to work.
The business, dubbed Hare, is being built alongside liquidity distribution platform Turtle and will create and manage onchain vaults. GSR's multi-year commitment will mostly take the form of a credit facility, with its capital going into Hare's products as anchor liquidity before outside investors arrive.
The move comes as vaults are becoming a key piece of onchain finance. Investors deposit assets into a smart contract, while a manager, or curator, decides how to deploy that capital across lending markets and other strategies. In practice, that can turn assets sitting in a wallet into collateral or a source of yield.
That model is becoming more relevant as tokenization spreads across traditional finance. More funds, commodities and other assets are moving onto blockchain rails, creating demand for infrastructure that can put those assets to work rather than simply hold or trade them. As of July, there were $8.6 billion in assets across 788 curated vaults, reaching 1.4 million, according to Vaults.fyi data.