May 12, 2026 - Pareto, an onchain private credit infrastructure provider, FalconX, a digital asset prime brokerage, and Monad, a high-performance EVM-compatible blockchain, announced the expansion of the FalconX Credit Vault to Monad, extending the use of onchain private credit as collateral across chains.
The FalconX Credit Vault on Pareto is an onchain credit facility curated by M11 Credit that provides investors with exposure to FalconX’s financing activities for trading firms, hedge funds, and other institutional counterparties. Unlike many onchain credit positions that are mainly held for passive exposure, deposits in the FalconX Credit Vault can also be used as collateral on Morpho to access additional liquidity and support more capital-efficient strategies.
That combination of institutional credit exposure and additional onchain utility has found increased demand among participants, driving over $135m in deposits and establishing AA_FalconXUSDC as one of the largest RWA collateral assets on Morpho.
RWAs have momentum on @Morpho.The RWA-backed lending market on Morpho grew from zero to ~$330M in collateral and ~$240M in active loans over the past year, representing ~8% of all active loans on the platform.
RWA lending is currently distributed across 45 markets.
“Deploying our tokenized Structured Credit Facility on Monad expands how institutional credit can be accessed and utilized across onchain environments. As demand grows for scalable, interoperable infrastructure, multi-chain availability allows a broader set of participants to engage with institutional-grade credit exposure and use it as productive collateral within decentralized ecosystems. Networks like Monad are designed to support more efficient onchain capital markets, which aligns with how these products are evolving”
Craig Birchall, Head of Lending, FalconX
The deployment on Monad builds on that momentum and marks the first step in Pareto’s multichain expansion. Monad’s high-performance EVM architecture makes it a natural environment for advanced financial applications and for strategies that depend on efficient onchain execution.
“Institutional-grade structured credit is one of the key vectors for the next generation of onchain financial markets. Money moves on Monad, and FalconX and Pareto’s deployment within the Monad ecosystem expands the range of institutional credit products available to developers, protocols, and investors. We are excited to see the proliferation of more sophisticated financial products within the ecosystem"
Keone Hon, Co-Founder and GM, Monad Foundation
This collaboration brings together:
FalconX as the provider of institutional credit exposure
Pareto as the Credit Vaults infrastructure provider
M11 Credit as the FalconX Credit Vault curator
Monad as the destination chain for the looping setup
Morpho as the lending protocol used in the looping setup
Steakhouse as the manager of the Morpho vault on Monad
Keyring as the zero-knowledge KYC provider on Pareto
How a typical bridging and looping flow may look like:
Deposit USDC into the Ethereum FalconX Credit Vault on Pareto (min. $250k deposit required)
Receive AA_FalconXUSDC - the ‘receipt token’
Bridge AA_FalconXUSDC to Monad through Pareto
Use bridged AA_FalconXUSDC as collateral on Morpho Steakhouse market to borrow USDC
Bridge the borrowed USDC back to Ethereum
Deposit USDC into the Ethereum FalconX Credit Vault on Pareto and repeat as desired, subject to risk parameters
“From the beginning, our goal with the FalconX Credit Vault was not only to bring institutional private credit onchain, but to make that exposure usable within DeFi. Expanding this setup to Monad is an important next step, and we expect more such deployments over time”
Matteo Pandolfi, Co-founder and CEO at Pareto
Deployments like this demonstrate how institutional credit infrastructure can expand across onchain environments - not as a one-off integration, but as a repeatable framework for bringing structured credit into new blockchain ecosystems.
Explore FalconX Credit Vault on Pareto: https://app.pareto.credit/vault#0xC26A6Fa2C37b38E549a4a1807543801Db684f99C
Not financial advice. Always do your own research.
Pareto is a private credit marketplace that connects institutional lenders and borrowers, providing scalable, yield-generating opportunities and enabling institutional capital to move onchain.
Tailored for asset managers, digital asset funds, fintechs, and other professional investors, Pareto offers seamless access to regulatory-compliant alternative credit products, alongside whitelabel infrastructure that enables partners to launch branded credit products onchain.
Credit Vaults are the core primitive: they eliminate utilization-based inefficiencies, reduce operational overhead, and improve capital efficiency for both lenders and borrowers.
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FalconX is a leading digital asset prime brokerage for the world’s top institutions. We provide comprehensive access to global digital asset liquidity and a full range of trading services. Our 24/7 dedicated team for account, operational and trading needs enables investors to navigate markets around the clock.
FalconX is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, Tiger Global Management and Wellington Management. FalconX has offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore and Valletta.
“FalconX” is a marketing name for FalconX Limited and its affiliates. Availability of products and services is subject to jurisdictional limitations and FalconX entity capabilities. For more information about which legal entities offer particular products and services, please see the disclosure on our public website, incorporated herein, or reach out to your relationship contact.
The Monad Foundation is an independent organization that supports the development, adoption, and growth of the Monad blockchain network, a high-performance, institutional-grade Layer 1 blockchain purpose-built to power the financial layer of the internet. The Monad Foundation supports open-source research, developer grants, and ecosystem initiatives that push the boundaries of decentralized computing.
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Founded in 2021, M11 Credit brings fixed income opportunities to capital allocators and credit solutions to established (crypto-native) companies and DeFi protocols.
By leveraging our longstanding and deep industry relationships we provide insights in up-to-date pricing and collateralization trends through existing lending activity.
Our team of dedicated professionals has expertise in both off-chain and on-chain deal structuring and implementation of comprehensive covenants that go beyond standard industry documentation.
M11 Credit is part of the M11 Group, a global blockchain and crypto-native investment firm.