Birch Hill Holdings Raises $2.5M Pre-Seed Funding

The institutional digital asset infrastructure firm secured funding from ParaFi Capital and Castle Island Ventures.

Published on Feb. 11, 2026

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Birch Hill Holdings, a digital asset infrastructure firm focused on onchain lending and tokenized asset markets, has raised $2.5 million in a pre-seed funding round co-led by ParaFi Capital and Castle Island Ventures. The founding team has experience in traditional credit markets and digital asset infrastructure, and the firm aims to bring the discipline of traditional credit investing together with modern blockchain-based infrastructure to meet institutional standards for governance, transparency, and risk management.

Why it matters

The funding round highlights the growing interest from institutional investors in thoughtfully structured exposure to blockchain-based credit markets. Birch Hill's approach to risk management and compliance is well-aligned with the direction institutional capital is moving in digital asset markets.

The details

Birch Hill Holdings is focused on capital preservation and structuring institutional lending strategies with risk discipline at the forefront. The firm provides fiduciaries with a compliant structure for accessing income opportunities in blockchain-based credit markets, supported by institutional-grade risk modeling and governance. The pre-seed round also included participation from Nascent, FalconX Ventures, Coin Operated Group, The Operating Group, JST Digital, and Flowdesk, as well as industry executives like Ramin Kamfar, the Founder and CEO of Bluerock.

  • Birch Hill Holdings closed the $2.5 million pre-seed funding round on February 11, 2026.

The players

Birch Hill Holdings

An institutional digital asset infrastructure firm focused on onchain lending and tokenized asset markets.

ParaFi Capital

A venture capital firm that co-led the pre-seed funding round for Birch Hill Holdings.

Castle Island Ventures

A venture capital firm that co-led the pre-seed funding round for Birch Hill Holdings.

Bhavin Vaid

The CEO of Birch Hill Holdings, with experience in structured credit at Goldman Sachs and private equity at Cerberus Capital.

Jack Forlines

The CTO of Birch Hill Holdings, previously worked on institutional risk systems within BlackRock's Aladdin platform.

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What they’re saying

“Credit markets stand to benefit from the efficiencies of blockchain-based settlement, but institutional participation has been limited by the need for stronger risk oversight and operational clarity. Our goal is to bring the discipline of traditional credit investing together with modern infrastructure in a way that meets institutional standards for governance, transparency, and risk management.”

— Bhavin Vaid, CEO of Birch Hill Holdings (BusinessWire)

“Birch Hill's approach to risk management reflects the kind of discipline institutional allocators expect. Their focus on governance, reporting, and credit fundamentals is well aligned with the direction institutional capital is moving in digital asset markets.”

— Ben Forman, Founder & Managing Partner at ParaFi Capital (BusinessWire)

“We continue to see growing interest from institutional investors in thoughtfully structured exposure to blockchain-based credit. Birch Hill's team brings the combination of traditional finance experience and digital asset expertise required to build durable infrastructure in this space.”

— Matt Walsh, Founding Partner at Castle Island Ventures (BusinessWire)

What’s next

With the $2.5 million in pre-seed funding, Birch Hill Holdings plans to expand its technical risk and engineering teams, and pursue the regulatory registrations necessary to offer compliant institutional access to onchain credit and tokenized asset markets.

The takeaway

Birch Hill Holdings' successful pre-seed funding round demonstrates the growing institutional demand for well-structured and risk-managed exposure to blockchain-based credit markets, as traditional finance players seek to leverage the efficiencies of decentralized finance while maintaining robust governance and compliance standards.