Valinor Digital has launched the Valinor BDC Exposure Fund, trading as VBDC, on Superstate's blockchain infrastructure. The fund provides qualified purchasers tokenized exposure to private credit with daily subscriptions and redemptions—a liquidity feature absent from traditional private credit markets.
Connor Dougherty and Lily Yarborough, former private credit executives at Blackstone, founded Valinor Digital in 2025. The firm aims to integrate real economy credit into blockchain infrastructure, moving beyond earlier DeFi credit experiments reliant on volatile crypto collateral.
Superstate, established in 2023, provides the underlying technology through its FundOS platform, which handles blockchain rails and transfer agent services. This structure keeps the fund compliant with existing securities regulations.
The VBDC fund holds a basket of SEC-registered, publicly traded business development companies. These BDCs provide debt and equity capital to middle-market businesses, forming the core of Valinor's real economy credit proposition.
Traditional private credit funds typically offer limited liquidity windows—quarterly to annual redemptions, with some offering none until term conclusion. VBDC's daily redemption mechanism breaks from this standard. While publicly traded BDCs already trade on exchanges, the tokenized structure enables 24/7 settlement and more efficient on-chain capital flows.
Valinor raised $25 million in seed funding in March 2026, led by Castle Island Ventures.
Superstate's FundOS platform previously facilitated hundreds of millions across diverse tokenized products. The firm's Direct Issuance Program allows companies to raise capital directly via SEC filings, recording tokenized shares on public blockchains.
By focusing on BDCs rather than attempting broader asset tokenization, Valinor targets a distinct niche within credit markets. The private credit industry has historically maintained distance from crypto infrastructure. This launch introduces that segment to digital asset rails for enhanced liquidity and operational efficiency.
