Birch Hill raises $2.5 million pre-seed round led by ParaFi Capital and Castle Island Ventures for institutional onchain credit infrastructure

Birch Hill Holdings, a company developing institutional onchain credit infrastructure for lending and tokenized asset markets, successfully closed a $2.5 million pre-seed funding round structured as a SAFE. The round was co-led by ParaFi Capital and Castle Island Ventures, with participation from Nascent, FalconX Ventures, JST Digital, and Flowdesk.

The New York-based firm is building institutional lending strategies focused on capital preservation and structured risk controls, initially launching vaults on Morpho, with plans to expand to other protocols like Euler. CEO Bhavin Vaid stated their goal is to merge traditional credit investing discipline with modern infrastructure to meet institutional standards for governance and transparency.

The company's approach centers on its Collateral Risk Framework, which monitors collateral liquidity, oracle redundancy, and market metrics in real time, designed for regulatory and client reporting. The founding team includes members with experience from Goldman Sachs, Cerberus Capital, and BlackRock's Aladdin platform. Birch Hill plans to use the capital to expand engineering and risk infrastructure teams and pursue regulatory authorizations, including potential RIA registration.

(Source：The Block)