Plume and FalconX Launch FALX, Expanding Onchain Access to Structured Credit Facility

Through the FALX Structured Credit Facility on Plume Nest Vaults, investors gain exposure to an overcollateralized lending strategy implemented via a FalconX-managed SPV, curated by M11 Credit.

Plume, the Open Finance platform for institutional assets, announced the launch of the FALX Structured Credit Facility, providing onchain access to overcollateralized prime brokerage lending.

Facilitated through Pareto and curated by M11 Credit, the vault allocates capital to a FalconX-managed SPV and provides exposure to overcollateralized loans originated through the FalconX prime brokerage platform. The vault, deployed on Plume in partnership with OpenTrade and available across Plume, Ethereum and Solana, is designed to bring together the best of open finance with reliable income from high-quality credit. The interest rate is fixed each monthly loan cycle, providing investors with more predictable yield.

The FALX Structured Credit Facility utilizes updated smart contract functionality to support intra-month subscriptions, allowing capital to begin earning prorated interest from the date of entry rather than waiting for a month-end netting period.

“Access to onchain strategies shouldn’t be reserved for institutions or hidden behind complex, opaque risk. With Plume vaults, we’re opening institutional strategies through compliant, programmable vaults, providing exposure to yield-generating RWA strategies that were previously out of reach,” said Teddy Pornprinya, CBO and Co-Founder of Plume.

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For the vault, the underlying credit exposure is derived from a diversified pool of loans issued to institutional participants on FalconX’s platform, including high-frequency traders, hedge funds, and asset managers. With current capacity to scale up to approximately $1 billion, the vault was created to meet growing demand for structured, yield-generating onchain products.

“We are incredibly excited to bring the FalconX credit ecosystem to Plume. We built the FalconX/Pareto Structured Credit Facility to address opacity concerns by providing enhanced reporting on portfolio composition and performance metrics. By leveraging our prime brokerage infrastructure, this collaboration extends access to underlying lending activity through onchain platforms, offering participants exposure to a differentiated RWA strategy in the Plume network,” said Craig Birchall, Head of Credit at FalconX.

M11 Credit serves as the administrative agent and collateral agent, monitoring loan book composition and aligning with FalconX to report performance data. Loans are generally structured to be overcollateralized, which is intended to mitigate, not eliminate, loss risk; collateral values and liquidation outcomes may vary. Pareto serves as an underlying credit infrastructure provider, facilitating deposits into FalconX-managed SPV.

*Participants may receive distributions derived from participatory interests in the facility. Returns are not guaranteed and are subject to the terms of the facility and associated risks.