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
"GSR's commitment is deployment capital," Hare CEO Connor Milner told CoinDesk in a statement. "Issuers get liquidity from day one, and allocators see GSR's own capital in the same vaults as theirs."
Hare will start with two products powered by lending protocol Aave. Hare USD Earn will accept major dollar stablecoins in a single vault, while Hare Gold Earn will let holders of Paxos' tokenized gold products PAXG and PAXGy earn yield. Paxos Labs is partnering on the gold product
The model is already drawing more institutional firms. Crypto lender Two Prime recently introduced a bitcoin lending vault built on Pareto with $10 million of backing. Galaxy Digital, meanwhile, rolled out Galaxy Curator, a Morpho-based vault platform that gives Fireblocks' 2,400 institutional clients access to onchain yield strategies
Hare said it will focus on the credit side of that equation, assessing collateral, counterparties and how positions might behave when markets come under stress
Milner previously served as senior director at London-based DeFi hedge fund Re7 Capital
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Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%. GENIUS pushes yield off-chain; TAM grows to $4B in 3 years
