Why Institutions Need More Credit in Crypto
The institutional digital asset sector has grown rapidly, yet many projects still struggle to secure the capital they need to scale. Traditional banks often shy away from crypto due to regulatory uncertainty and perceived risk, leaving a gap that private credit can fill.
What Is Covenant-Based Underwriting?
Unlike conventional loans that rely mainly on collateral, covenant-based underwriting focuses on a borrower’s financial health, operational metrics, and risk controls. By setting performance benchmarks, lenders can monitor ongoing compliance and adjust terms as conditions change.
Hashed’s $300M Fund: How It Works
The fund will invest in a diversified portfolio of digital asset projects, providing tailored financing solutions. Key features include:
- Targeted capital of $300 million, with commitments from institutional investors.
- Use of covenant-based underwriting to assess borrower viability.
- Flexible repayment structures aligned with project milestones.
- Active portfolio management to monitor covenant compliance.
Benefits for Digital Asset Projects
Projects gain access to:
- Capital without giving up equity stakes.
- Structured repayments that match revenue timelines.
- Professional oversight to improve governance.
Impact on the Crypto Ecosystem
By bridging the financing gap, the fund can:
- Accelerate product development and market entry.
- Encourage more robust risk management practices.
- Signal confidence to regulators and investors.