Plume Network and FalconX have officially launched the FALX Structured Credit Facility, a product that gives onchain investors access to overcollateralized prime brokerage lending. The facility is targeting a capacity nearing $1 billion, which would make it one of the largest structured credit vehicles operating on blockchain infrastructure.
How FALX actually works
The facility channels capital into loans made to hedge funds and asset managers through a special purpose vehicle managed by FalconX. Investors get fixed monthly interest rates. The overcollateralized structure means borrowers must post more collateral than the value of their loans, providing a buffer against defaults.
One of the more interesting mechanical details is the intra-month subscription feature. Rather than requiring investors to wait for the start of a new period, they can enter mid-cycle and receive prorated yields for the remaining days.
The facility integrates with Plume’s Nest Vaults and involves a roster of partners handling different layers of the stack. Pareto provides infrastructure support, M11 Credit acts as curator and agent, and OpenTrade handles deployment.
