Birch Hill, a New York firm that assesses, structures and distributes credit on public blockchains, announced on 28 October 2026 a $4 million seed round led by Multicoin Capital, with ParaFi Capital, Castle Island Ventures and Nascent, taking its total funding to $6.5 million, according to the announcement. Morpho’s public API, checked by Fintechbits on 28 October 2026, lists Birch Hill as a vault curator with about $240,000 in assets under management, 42nd of 45 curators, against roughly $2.5 billion for the largest, Steakhouse Financial.

What Birch Hill is building

Birch Hill runs three divisions. In Vaults, it is an official curator on Morpho, the onchain lending protocol, where it assesses credit and sets risk parameters. In Strategies, it is building onchain credit products, including an onchain credit strategy called Birch Hill Absolute Value. In Enterprise, it has applied to FINRA for broker-dealer membership and plans to place private credit offerings with accredited investors once approved.

The round pays for an eight-person team that includes three hires from Yearn, the vault platform, and one from Gauntlet, the onchain risk firm. Birch Hill met the SEC’s Crypto Task Force in August, and it plans eventually to securitize pools of US multifamily, agriculture and energy loans to be held onchain. Chief executive Bhavin Vaid says the firm is “opting to engage directly with regulators to obtain the appropriate licensing.”

The Morpho figure puts the plan in proportion. The firm’s vault book is a rounding error next to the largest curators, so this seed round is a bet on the Enterprise division and on regulatory approval, not on a vault business that already works at scale. Tokenized private credit has drawn bigger players, including Victory Park’s VALTS structure, which Fintechbits covered on 17 October, and the asset class carries the risks Fintechbits set out for private credit generally. A FINRA approval would be the first real milestone.