Valinor Digital Raises $25M Seed for Blockchain Credit Platform

Valinor Digital, a New York-based startup focused on blockchain-based private credit, has secured $25 million in seed funding to advance its platform for on-chain lending. The round, announced this week, was led by Castle Island Ventures and included participation from investors such as Susquehanna's crypto division, Maven11, Apollo, Neoclassic Capital, The Venture Dept, 57Blocks, The Fintech Fund, and founders of bitcoin mining firm TeraWulf.

Founded in 2024 by Connor Dougherty and Lily Yarborough, both former employees of Blackstone's private credit division, Valinor aims to streamline institutional lending by integrating traditional credit processes with blockchain technology. The company's flagship product, Open Credit, originates loans directly on public blockchains, using smart contracts to automate workflows that typically involve manual verification, spreadsheets, and human oversight. This approach, the founders say, reduces operational costs, enhances transparency, and minimizes friction in areas like fund routing, covenant monitoring, and repayments.

Dougherty, who previously worked in banking and Blackstone's credit operations, described the technology as combining...