Coalesce: Fixed-Rate Onchain Credit

Starting today, anyone can lend USDC to vetted businesses at fixed rates, fully onchain.

TL;DR

• 10–18% fixed yield on Solana USDC
• 7–60 day lockups
• You hold the senior tranche; the borrower posts capital that absorbs first losses
• Live now, $500k+ cumulative volume lent onchain with 0% defaults. More markets to come

Why credit hasn't moved onchain

Credit is time travel: it moves future cash flows to the present, for the price of interest. For economic activity to move onchain, we need credit onchain.

But covenant-based lending doesn't exist onchain at any meaningful scale. Overcollateralized DeFi lending serves crypto natives well, but doesn't replace TradFi credit markets. There are three structural reasons:

1. Capital inefficiency. To borrow $100 onchain, you need to lock up more than $100 in assets. Collateral replaces underwriting. Imagine only being able to get a mortgage if you gave the bank assets worth more than your house.
2. Opaque counterparties. Do you know who you're lending to when you deposit into a lending protocol? Counterparties are pseudonymous by nature.
3. Correlated risk. Your "safe" stablecoin yield often comes from lending funds used to speculate on higher-risk crypto. When borrowers lever up, this can lead to liquidation cascades and stablecoin depegs, as we saw on 10/10/2025.

Meanwhile, the $3 trillion TradFi private credit market runs on an operating system that hasn't kept up: slow reporting, delayed NAV marks, manual servicing, opaque portfolio monitoring. Recent redemption queues and markdowns at the industry's largest funds have made these cracks visible.

Loans at stablecoin speed

Coalesce brings the fixed income primitive fully onchain. We issue, service, and collect fixed-rate debt in USDC. Borrowers are vetted, KYB-ed businesses, so you know exactly who you're lending to and at what rate.

Because we're cryptonative, Coalesce issues business loans faster than TradFi. Borrower cash flows are observable onchain in real time, servicing is programmatic, and settlement is instant. Lenders earn fixed-rate yields on real-world debt, with no minimums and no waiting for quarterly reports.

We're not blindly extending margin. Lenders fund the senior tranche of each facility; the borrower posts a subordinated junior tranche that absorbs losses before lender capital is touched. We monitor exposure, utilization, and loan performance in real time onchain.

Prediction markets first

We're starting with short-duration, data-rich credit facilities for prediction market operators: market-making inventory, settlement timing, user margin, and working capital.

Prediction markets are on pace to move $240B in 2026, and the working capital needed to support that volume is credit demand that traditional lenders aren't built to underwrite. The category is high velocity, data rich, short duration, naturally stablecoin settled — and underserved. Risk analysis, onchain exposure monitoring, and concentration caps at the market and wallet level mean we see loan performance live, not when a payment is due.

Each facility type becomes a reusable package: legal docs, borrower integrations, monitoring rules, servicing flows, and reporting. With that template, we'll expand into adjacent short-duration credit verticals that can be underwritten, monitored, serviced, and distributed onchain. We're particularly excited to partner with stablecoin companies to extend short-duration credit to their end customers in areas like trade finance.

It's working: our pilot credit facilities scaled from $100k to $400k+ in 30 days, and we're on pace for $1M+ lending volume in the next 30.

Not another credit protocol

Onchain credit has been tried before. Previous attempts such as Goldfinch and Maple took a traditional offchain credit product with opaque counterparty risk and stale financials and financed it with DeFi liquidity. Our loans are issued, serviced, and settled fully onchain, with observable stablecoin cash flows and short durations that let us collect data and expand credit lines over time.

We're also not a collateralized lending market. Protocols like Morpho require collateral to seize, because liquidation is their only recourse. We're the credit-risk layer that collateralized lending, by definition, is not. And we're not payment-float lending, where the risk is fraud over 0–3 day settlement windows. We specialize in weeks-to-months business credit. Our real competitors are TradFi private credit funds, and we offer what they structurally can't: real-time monitoring, instant settlement, and no minimums.

Who we are

I (Dan) was one of the first 10 employees at TRM Labs, where I led the Analytics function. I helped clients like Uniswap, the Monetary Authority of Singapore, and the FTX bankruptcy team understand onchain data, finding $300M+ onchain that was previously unknown to the bankruptcy team. It's there that I met Chris, a Computer Science PhD who used ML to link hundreds of millions of pseudonymous blockchain addresses to known entities. This background in data, risk analysis, and AI is the same skillset that allows us to accurately analyze risk at Coalesce.

Where we're headed

Today, Coalesce is direct peer-to-business lending: you pick a market, deposit USDC, and earn a fixed rate. As we scale loan volume, we'll move to a vault-based model that pools loans into structured products. That lets underwriting experts curate vaults in verticals they know best, and unlocks full DeFi composability, such as borrowing against lending positions and trading them on secondary markets.

Lending markets on Coalesce are live now.

• Lend at coalescefi.com.
• Join our Telegram group where we post new lending opportunities.
• And if you're a business interested in borrowing onchain, or want to explore a credit partnership, reach out to me directly on Telegram — I'd love to chat.