Plume Launches FACTOR Vault With $15M To Bring Institutional Private Credit On-Chain
Plume has launched FACTOR, a tokenized private credit vault that secured $15 million in initial committed capital to provide on-chain investors access to short-duration financing. Developed in partnership with Tradable and Deep Ocean Partners, the vault focuses on net working capital financing, including invoice factoring and asset-based lending. Plume provides the vault infrastructure, Tradable handles the tokenization and lifecycle management, and Deep Ocean Partners manages the credit underwriting and servicing. The product targets a 14% APY and incorporates a liquidity sleeve and warehouse facility to manage investor redemptions. By bringing institutional-grade private credit on-chain, the initiative aims to bridge traditional lending markets with blockchain-based distribution channels. This launch represents a significant expansion of the RWA sector, moving beyond standard treasury products into active, short-term corporate financing. The firms plan to scale the vault's capacity as additional credit opportunities are sourced and investor demand grows.
- Plume launched the FACTOR vault with $15 million in committed capital for private credit.
- The vault targets a 14% APY through short-duration assets like invoice and receivables factoring.
- Partnership includes Tradable for tokenization infrastructure and Deep Ocean Partners for credit underwriting.
- Liquidity is managed via a warehouse facility and the natural amortization of short-term receivables.
Private credit refers to loans provided by non-bank institutions to companies, often serving as an alternative to traditional bank financing. In the context of tokenization, these illiquid debt instruments are represented as digital tokens on a blockchain, allowing for fractional ownership, automated servicing, and broader access to capital markets. These vaults typically use smart contracts to manage the lifecycle of the loan, from origination to repayment.