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GSR Launches $100M Onchain Credit Vault Business Hare

Initial products powered by Aave and Paxos target stablecoin and tokenized gold yields

By LineZotpaper
Published
Read Time1 min
Crypto trading giant GSR has committed $100 million to a new vault business called Hare, betting on onchain credit markets. The platform will launch with two products built on the Aave lending protocol: Hare USD Earn, which accepts major dollar stablecoins, and Hare Gold Earn, offering yield on Paxos tokenized gold products PAXG and PAXGy. Paxos Labs is a partner on the gold product.

Hare CEO Connor Milner told CoinDesk that GSR's commitment is 'deployment capital' and that 'issuers get liquidity from day one, and allocators see GSR's own capital in the same vaults as theirs.'

The model is gaining institutional traction. Crypto lender Two Prime recently launched a bitcoin lending vault on the Pareto platform with $10 million of backing, while Galaxy Digital rolled out Galaxy Curator, a Morpho-based vault platform giving Fireblocks' 2,400 institutional clients access to onchain yield strategies.

Hare says it will focus on the credit side of the market, assessing collateral, counterparties and how positions behave under market stress. Milner previously served as senior director at London-based DeFi hedge fund Re7 Capital.

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Analysis

Why This Matters

  • Institutional capital is moving deeper into decentralized finance, signaling growing confidence in onchain credit markets.
  • If successful, these vaults could create new yield opportunities for large holders of stablecoins and tokenized assets.
  • The structure aligns issuer and allocator interests, potentially reducing friction in DeFi lending.

Background

GSR is a major crypto trading and market-making firm. The new vault business, Hare, builds on existing DeFi lending protocols. Aave is a leading decentralized lending platform, while Paxos issues regulated tokenized gold products. The push comes as other crypto financial firms such as Galaxy Digital and Two Prime launch similar vault-based products.

Key Perspectives

GSR and Hare: They see a market need for institutional-grade onchain credit, with GSR absorbing initial risk and providing liquidity. Their focus on credit assessment aims to manage volatility. Institutional investors and allocators: These firms gain exposure to DeFi yields with the comfort that GSR's own capital sits alongside theirs, reducing counterparty concern. Critics and Skeptics: Onchain credit remains untested in severe market downturns. Smart contract risk, regulatory uncertainty, and the potential for mass liquidations could undermine the model.

What to Watch

  • Adoption by other institutional players: Are more lenders and asset managers launching vault offerings?
  • Performance during market stress: How do these positions behave in a sharp downturn?
  • Regulatory response from U.S. and other jurisdictions toward tokenized lending products.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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