GSR Markets launches a $100M vault business focused on onchain credit products.
DeFi & Yields ·
GSR, a crypto trading and market-making firm, is deploying $100 million into Hare, a new onchain vault business being built with liquidity platform Turtle. The commitment will largely flow through a credit facility to serve as anchor liquidity across Hare's initial products—vaults powered by lending protocol Aave that support major dollar stablecoins and Paxos' tokenized gold offerings (PAXG and PAXGy). GSR's capital will enter the same vaults as external investors, signaling confidence to allocators from day one.
The move reflects a broader institutional pivot toward vaults as digital and tokenized assets proliferate onchain. Vaults let investors deposit assets into smart contracts where managers deploy capital across lending markets and yield strategies, converting idle holdings into collateral or income-generating positions. As of July, curated vaults held $8.6 billion across 788 instances serving 1.4 million allocators. Other institutional players—including Two Prime with a $10 million bitcoin lending vault and Galaxy Digital's Morpho-based curator platform—are similarly entering the space.
Hare will emphasize credit assessment, focusing on collateral evaluation, counterparty risk, and stress-scenario analysis. CEO Connor Milner previously held a senior directorship at Re7 Capital, a London-based DeFi hedge fund. Whether Hare's dual focus on stablecoins and tokenized gold will attract the institutional capital needed to scale beyond GSR's anchor commitment remains to be seen.