September 17, 2025 – Pareto, a private credit marketplace connecting institutional lenders and borrowers, is excited to announce the integration of the FalconX Credit Vault with Term Finance, a leading fixed-rate lending protocol.
In partnership with one of the largest digital asset prime brokerages FalconX and fixed-rate lending protocol Term Finance, Pareto is rolling out onchain fixed income products that offer investors exposure to institutional credit strategies available on Pareto, while gaining the benefits of risk transfer provided by overcollateralized lending on Term Finance.
Pareto’s FalconX Credit Vault tokens (AA_FalconXUSDC) are now eligible collateral in Term’s fixed-rate lending auctions, enabling users to borrow USDC at predefined rates and maturities. Term auctions allow borrowers and lenders to submit bids and offers for fixed rate, fixed term loans and the rate that comes out of the auction is the rate that borrowers pay and lenders receive for a fixed rate, fixed term loans.
This adds a new use case for tokenized credit in DeFi: structured loan mechanisms that resemble traditional repo market instruments. The integration of FalconX Credit Vault tokens with Term Finance applies the same principle on-chain: institutions can post their credit exposure as collateral and access USDC liquidity, opening the door to a repo-style market for private credit.
To bootstrap the market, M11 Credit will provide risk curation for a new M11C USDC Vault, lending USDC against Pareto assets, beginning with the FalconX Credit Vault.
The vault is designed to provide on-chain access to the performance of institutional-grade lending strategies while unlocking on-chain utility and the benefits of composability true to DeFi’s core.
“The structured products built around the FalconX Credit Vault represent a milestone for bringing real-world credit positions into DeFi’s capital markets,” said Matteo Pandolfi, Co-founder of Pareto. “With Term Finance, we’re enabling Pareto users to use FalconX-backed assets as collateral in fixed-rate lending markets.”
The launch comes amid growing demand for real-world asset (RWA) integration in DeFi. While tokenized treasuries and stablecoins have gained traction, private credit and institutional products are gaining momentum in large part thanks to Pareto’s Credit Vaults structure.
“This collaboration allows us to deliver institutional-grade credit strategies to a broader set of on-chain participants,” said Craig Birchall, Head of Credit, Americas at FalconX. “By enabling FalconX vault assets to back on-chain lending markets, we combine trading and credit expertise with the composability and transparency of DeFi.”
“Borrowers in DeFi have lacked fixed rate borrowing against real-world collateral,” added Dion Chu, CEO of Term Finance. “We’re changing that by supporting tokenized instruments like the FalconX Credit Vault in fixed-rate lending, which gives users more control and stability.”
Unlike variable-rate protocols, Term Finance offers fixed-term, fixed-rate borrowing via auction-based price discovery. By onboarding the FalconX Credit Vault as collateral, Term opens the door to capital-efficient, low-volatility strategies for both crypto-native and institutional participants.
Explore the auction on Term Finance: https://app.term.finance/auctions/0x1b6d04439efe0dc83d0f1a7e885f1ec96f4f9199/1
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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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 Bravo, Inc., a FalconX affiliate, was the first CFTC-registered swap dealer focused on cryptocurrency derivatives.
Term is a decentralized fixed-rate lending protocol enabling on-chain borrowing against crypto-native assets and RWAs.
Founded in 2021, M11 Credit offers various fixed-income opportunities to capital allocators and provides credit solutions to established (crypto-native) companies and DeFi protocols. Leveraging deep industry relationships, we deliver insights into current pricing and collateralization trends through our existing facilities. Our team excels in both off-chain and on-chain deal structuring, implementing comprehensive covenants beyond standard industry documentation.
M11 Credit is part of the M11 Group, a global blockchain and crypto-native investment firm including Maven11, M11 Funds and C11 Labs
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