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Valinor Raises $25M Seed Round to Bring Private Credit Onchain

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The ex-Blackstone team wants to move beyond crypto-collateralized loans and into ‘real economy credit’ as the tokenized RWA sector continues to grow.

Valinor, a New York-based startup building what it calls “Open Credit” infrastructure at the intersection of institutional capital and decentralized finance (DeFi), has raised $25 million in a seed round to bring private credit onto the blockchain.

Castle Island Ventures led the round. Other investors include Susquehanna’s crypto arm, Maven11, Apollo, Neoclassic Capital, The Venture Dept, 57Blocks, The Fintech Fund, and the founders of Bitcoin miner-turned-AI company TeraWulf, according to the company’s website. The round’s valuation was not disclosed.

Co-founders Connor Dougherty and Lily Yarborough both worked in Blackstone’s GSO Special Situations credit division before launching Valinor in late 2023.

Valinor is targeting the operational overhead embedded in private credit. The firm argues that rules-based lending operations — such as revolving credit facilities where borrowers draw and repay millions weekly — can be automated through smart contracts rather than managed through chains of human verification and manual wire approvals.

The company has already deployed blockchain-based loans to a handful of fintech and crypto companies, Fortune reported.

Private Credit Dominates RWA Market

The deal comes as private credit has become the largest category in tokenized real-world assets (RWA). The total distributed value of on-chain RWAs has reached approximately $26.7 billion, according to RWAxyz, up from roughly $5.5 billion at the start of 2025. Private credit accounts for the bulk of that total, with Figure alone holding roughly 75% of the category’s active loans through its Provenance blockchain.

RedStone projected that the total tokenized RWA market could reach $50–60 billion by the end of 2026, with private credit expected to maintain roughly 45–50% market share.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

FCA Consolidates Priorities to Modernise UK Payments Sector

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The Financial Conduct Authority (FCA) has overhauled its supervisory approach for the payments industry, replacing more than 40 individual portfolio letters with a single annual Regulatory Priorities report. The move signals a shift toward a more “smarter” and “proportionate” regulatory model designed to support the UK’s National Payments Vision while tightening the net on firms failing to protect customer funds.

By streamlining its communications, the regulator aims to provide a “one-stop shop” for boards and executives to understand exactly where to focus their compliance efforts. This new framework is underpinned by a risk-based approach, where firms doing the right thing face less intensive supervision, while those posing the greatest harm meet stronger, faster enforcement action.

Matthew Long, Director of Payments and Digital Assets at the FCA, explained that the sector is evolving at pace, driven by open banking and new digital payment methods. “By setting out our priorities clearly, we want firms to understand where to focus their efforts — helping to deepen trust, rebalance risk and support sustainable growth,” Long said.

Future Infrastructure and Open Banking

A primary focus for the year ahead is the expansion of open banking and the transition toward a “Future Entity” to lead the ecosystem. With over 16 million people and businesses in the UK using open banking in 2025, the FCA is now working with the Treasury to introduce legislation that would grant the regulator permanent powers to set rules for a long-term framework.

This includes the development of commercial models for variable recurring payments (VRPs) and laying the groundwork for e-commerce use cases. However, the report raises questions about how quickly the industry can move toward “agentic AI payments,” an area the FCA is currently reviewing to determine if existing regulations are fit for purpose.

Strengthening the Safeguarding Net

The regulator remains vocal about its concerns regarding the safety of customer money, particularly if payments firms fail. In response to persistent weaknesses, the FCA is set to implement its Safeguarding Supplementary Regime in May 2026.

Electronic money institutions safeguarded approximately £26billion in 2024, yet the FCA warned that many firms still lack robust risk management frameworks and wind-down plans. The regulator noted it expects an increase in “adverse” audit opinions in the short term as standards are tightened across the sector.

Integrity and Financial Crime

Protecting financial system integrity remains a top priority, with a specific focus on slowing the growth of authorised push payment (APP) fraud and money laundering. Firms are expected to invest in “right skills” to design and test systems and controls, rather than relying on legacy processes.

The FCA also confirmed it will continue to consolidate the functions of the Payment Systems Regulator (PSR) into its own operations where possible ahead of formal legislation. This is intended to create a more agile and responsive environment, though it places the onus on firms to manage a shifting regulatory landscape while maintaining the high standards required by the Consumer Duty.

As the FCA moves toward publishing final policy statements on its cryptoasset regime and stablecoin issuance later this year, the industry must now decide if it can innovate at the speed the regulator expects while meeting these increasingly rigorous safety requirements.

U.S. Senators Unveil Landmark Bitcoin Mining, Reserve Bill

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Republican Senators Bill Cassidy and Cynthia Lummis introduced legislation Monday aimed at reshaping the U.S. digital asset mining sector, tightening supply chains, and embedding bitcoin into federal reserve strategy.

The proposal, titled the “Mined in America Act,” would establish a federal certification program for domestic crypto mining operations while phasing out reliance on foreign-manufactured hardware.

It also seeks to codify Donald Trump’s executive order creating a Strategic Bitcoin Reserve, placing the policy on statutory footing, according to a release on the matter.

“Digital asset mining is a big part of our economy. We should be doing it here in America,” Cassidy said in a statement, framing the bill as a supply chain and manufacturing initiative.

Lummis tied the legislation to a broader push to position the United States as a global hub for digital assets. “The Mined in America Act brings this industry home through forward-thinking initiatives to secure our financial future,” she said.

The bill directs the Department of Commerce to create a voluntary “Mined in America” certification for mining facilities and pools that meet security and sourcing standards. Certified operators would be required to transition away from hardware linked to foreign adversaries over a phased timeline, with the goal of full compliance by the end of the decade.

Lawmakers and industry advocates have pointed to a stark imbalance in the current mining ecosystem. While the United States controls an estimated 38% of global bitcoin hash rate, roughly 97% of specialized mining hardware is produced by Chinese firms, including Bitmain and MicroBT.