Key Takeaways
Data blockchain Space and Time on Tuesday launched Virtual Vaults, a platform designed to give institutional lenders continuously updated, verified visibility into borrower collateral across the digital asset market. The product aims to replace static quarterly audits with a real-time data feed, addressing a key risk in on-chain credit.
"Institutional lenders need to see exactly what collateral backs a loan, exactly when they need to see it. Virtual Vaults make that possible onchain for the first time,” said Nate Holiday, co-founder of Space and Time and CEO of MakeInfinite Labs.
The platform allows lenders and borrowers to configure vaults tied to specific lending agreements, monitoring assets across the centralized exchanges and decentralized finance (DeFi) protocols where they are deployed. This model provides a direct, verifiable alternative to generic solvency attestations, which can quickly become outdated as borrower positions shift. Space and Time is backed by M12, Microsoft’s venture capital arm, and was recently designated a Microsoft co-selling cloud solution.
The launch arrives as regulatory clarity for crypto assets improves globally, with Europe implementing its Markets in Crypto-Assets (MiCA) framework and the U.S. advancing stablecoin legislation. By providing a tool for verifiable, real-time collateral monitoring, Space and Time's Virtual Vaults are positioned to meet the compliance and risk management demands of institutions that have been waiting for such frameworks to engage with on-chain finance.
Institutional borrowers in crypto often manage collateral across dozens of venues, executing trades that cause positions to change by the hour. Traditional methods like quarterly auditor reports fail to capture this dynamic risk, creating significant information gaps for lenders.
Virtual Vaults solve this by streaming cryptographically verified data that updates continuously. Lenders can customize monitoring for specific venues and asset types that qualify as eligible collateral under a loan agreement. The system can also be configured to trigger automated alerts when collateral values cross predefined thresholds, allowing for proactive risk management rather than reactive responses to outdated reports.
The project's development is supported by significant players in both technology and finance. Space and Time’s backing by M12 signals confidence from a major institutional investor.
MakeInfinite Labs, which contributed to the protocol's creation, has raised $50 million from M12 and other investors to build infrastructure for data-driven applications. The native token of the protocol, SXT, has a market cap of approximately $21.92 million with over 368,000 token holders, according to CoinMarketCap data at the time of publication.
This article is for informational purposes only and does not constitute investment advice.
