RockawayX is a pioneering investment firm at the convergence of traditional and decentralized finance. As an active participant and investor in private credit and digital assets, RockawayX continuously seeks infrastructure and investment solutions that enhance operational efficiency, improve legal structures, and drive superior returns.
With this strategic focus, RockawayX partnered with Pareto to allocate capital to the FalconX Credit Vault, where funds are extended to FalconX, a leading digital asset prime broker. The Vault is curated by M11 Credit, which evaluates borrowers, structures loans, oversees risk management, and ensures the timely distribution of interest to lenders. As part of its role, M11 Credit also facilitates transparent borrower reporting by reviewing performance metrics and relaying monthly updates to all liquidity providers. These reports offer insights into loan activity, capital utilization, and borrower performance, helping lenders make informed decisions throughout the loan lifecycle.
Moreover, the Vault is backed by layers of structural protections, including an equity tranche, transaction-level collateralization, and a real-time risk engine.
Partnering with Pareto allowed RockawayX to streamline and automate its approach to loan origination, unlocking cost savings, operational simplicity, regulatory alignment, enhanced transparency, and stronger risk management
RockawayX utilized Pareto’s legal framework and took the lead in managing the FalconX Credit Vault’s initial legal fees, enabling future investors to rely on the same set up without duplicating legal efforts, significantly reducing legal costs in the process.
Unlike many crypto lending platforms, Pareto is built with institutional standards in mind, offering stronger legal protections and greater clarity around investor rights.
"Pareto’s legal framework established a robust structure that follow-on investors can leverage at no additional cost, giving them strong legal protection without having to shoulder the upfront expense."
- Adam Bilko, Portfolio Manager at RockawayX
By leveraging Pareto’s standardized and automated framework, RockawayX improved efficiency and lowered the costs traditionally associated with institutional credit investments.
Time-to-market is critical for institutional investors. With Pareto, RockawayX experienced a streamlined onboarding process that eliminated much of the manual, paper-based processes common in traditional setups.
The result? A multimillion-dollar investment that can be executed from scratch in under 15 minutes!
How it works:
Instant on-chain execution: smart wallets enable direct on-chain investments within seconds. No more waiting on slow, cross-border bank transfers.
Fast, private KYC: identity verification takes under 10 minutes. Pareto integrated Keyring, which uses zero-knowledge (ZK) technology to securely validate identity without exposing user data.
Seamless vault access: once KYC is completed, investors can connect to Credit Vaults instantly. No legal back-and-forth, no manual approvals.
Active risk oversight: Vault’s dedicated curator provides dynamic risk management, continuous monitoring, and monthly reporting.
"It took us less than 15 minutes to go from zero to a fully executed investment"
- Adam Bilko, Portfolio Manager at RockawayX
Transparency is a fundamental requirement for any investor when making investment decisions, and it remains an important principle in RockawayX’s approach. With Pareto’s on-chain infrastructure, the entire lifecycle of debt facilities from origination to servicing is fully transparent and auditable.
Real-time visibility into capital flows, borrower performance, and loan structures empowers RockawayX to maintain oversight, improving trust and accountability across its portfolio.
Each Credit Vault operates under a clear, legally binding agreement that defines borrower obligations and lender rights - a critical factor in RockawayX's decision to allocate capital. Due diligence on borrowers and the clarity of legal protections were crucial elements in the process and served as valuable support for RockawayX’s internal verification procedures, e.g., their own due diligence process.
In the case of the FalconX vault, assets are secured by layers of structural protections, including an equity tranche, transaction-level collateralization, and a real-time risk engine.
Moreover, the FalconX Credit Vault is structured so that liquidity providers deposit funds directly into a borrower-specific Special Purpose Vehicle (SPV). This setup ensures clear segregation of capital, isolating assets from other funds managed by the borrower and enhancing transparency and lender protection.
Most of the protections are reinforced by active curator oversight, ensuring lenders are represented throughout the loan lifecycle, with the ability to trigger cure periods or enforcement actions in case of default.
Borrowers are also required to submit monthly performance reports, which are promptly relayed to all lenders, supporting transparency and timely monitoring.
Through its collaboration with Pareto, RockawayX is supporting improvements in market standards around cost efficiency, regulatory alignment, and transparency in private credit. By moving select processes on-chain, it contributes to the broader evolution of institutional-grade decentralized finance.
Explore the FalconX Credit Vault, where RockawayX has allocated capital:
https://app.pareto.credit/vault#0x24e16F9Fad32891f8bA69cE8fEdd273A2649331A
Pareto is a private credit marketplace that connects institutional lenders and borrowers, providing scalable, yield-generating opportunities and bridging institutional capital on-chain.
Tailored for asset managers, digital asset funds, and other professional investors, Pareto offers seamless access to regulatory-compliant alternative credit products. Its infrastructure emphasizes transparency, automation, and flexibility. Credit Vaults are the core primitive: they eliminate utilization-based inefficiencies, reduce operational overhead, and improve capital efficiency for both lenders and borrowers.
As the financial landscape evolves, Pareto aims to set a new standard for institutional credit with fully automated, data-driven lending solutions.
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