Crypto trading and market-making firm GSR is committing $100 million to a new onchain credit business, betting that vaults will become a bigger part of how institutional investors put digital and tokenized assets to work.

The business, dubbed Hare, is being built alongside liquidity distribution platform Turtle and will create and manage onchain vaults. GSR’s multi-year commitment will mostly take the form of a credit facility, with its capital going into Hare’s products as anchor liquidity before outside investors arrive.

The move comes as vaults are becoming a key piece of onchain finance. Investors deposit assets into a smart contract, while a manager, or curator, decides how to deploy that capital across lending markets and other…