Birch Hill raises $4 million to bring U.S. loans onto public blockchains
By Marcel Langevoort · 3 November 2026Birch Hill has raised $4 million in a seed round led by Multicoin Capital, with participation from ParaFi Capital, Castle Island Ventures and Nascent. The New York company, founded by former Goldman Sachs and BlackRock employees, has now raised a total of $6.5 million. It aims to bring U.S. multifamily housing, agriculture and energy loans onto public blockchains within the U.S. regulatory framework.
The company operates across three divisions. Vaults assesses credit risk and sets risk parameters for vaults and markets on lending protocol Morpho. Strategies develops onchain credit products, including Birch Hill Absolute Value. Enterprise has applied to FINRA for broker-dealer membership, through which Birch Hill intends to place private credit offerings with verified accredited investors. The source does not report approval of that application.
Over the longer term, Birch Hill plans to securitize portfolios of U.S. loans in structures designed to be held onchain. The company says it met with the SEC’s Crypto Task Force in August as part of that effort. Birch Hill argues that banks, insurers and other fiduciaries need familiar structures before investing in such credit. The funding supports an eight-person team, including three recruits from Yearn and a hire from Gauntlet.
Business impact
Why does this matter for businesses?
For loan originators, the approach could provide an additional source of funding, while credit assessment and risk management may offer greater reassurance to onchain investors. Birch Hill combines existing activities on Morpho with plans for securitized loans within the U.S. regulatory framework. For financial institutions, that legal structuring may be particularly relevant: Birch Hill says familiar structures are a prerequisite for participation by banks and insurers. However, the FINRA application and planned securitizations do not yet represent established market access or launched products. Potential business partners should therefore distinguish between the company’s operational services and its plans.
Sources
Original article: Decrypt ↗ · 28/10/2026
This summary was prepared with AI assistance and reviewed by the editor.
Tags: birch hill, private credit, tokenisatie, morpho, finra
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