Tare Raises $13.25 Million to Rebuild Private Credit’s Back Office

NEW YORK — Tare, a Brooklyn-based financial technology company, has raised $13.25 million in seed funding to overhaul loan management systems with blockchain technology. The round closed in March and was led by venture capital firm Blockchain Capital. Tare did not disclose its post-money valuation.

The financing included asset manager Janus Henderson, Neoclassic Capital, Strobe Ventures, The Venture Dept, and the Avalanche Foundation. Angel investors included Aave chief executive officer Stani Kulechov, Tether co-founder Phil Potter, and Privy chief executive officer Henri Stern.

Tare operates offices in Brooklyn, New York, and Lisbon, Portugal. It plans to use the seed capital to expand its software development team and obtain necessary regulatory licensing across U.S. jurisdictions for its lending arm, Tare Credit LLC.

The company is developing enterprise software on the Avalanche blockchain to create unified, immutable digital records for private debt instruments. The platform also automates payment processing, cash flow distribution, and transaction reconciliation.

Private credit has expanded rapidly over the past decade as traditional commercial banks tightened lending standards following post-2008 capital requirements. The global private credit market is moving toward $1.7 trillion, with the sector encompassing direct lending, distressed credit, and asset-backed finance.

Unlike public markets or traditional consumer banking, private credit originations depend on independent loan servicers, trustees, custodians, paying agents, and fund administrators. These intermediaries maintain proprietary, siloed databases, leaving loan administration reliant on manual data entries, spreadsheet transfers, and continuous reconciliation cycles.

According to Tare chief executive officer Kevin Miao, those operational inefficiencies create cost friction throughout the lending lifecycle. In mortgages and specialty debt, administrative overhead raises the interest rates charged to borrowers while reducing the net yield delivered to institutional investors. Consolidating servicing data onto a shared ledger can reduce administrative expenses and tighten spreads between borrowers and investors.

Miao began his career at Citigroup in 2014, trading subprime mortgage products and helping early fintech lenders access debt capital markets. He moved into digital assets in 2018 and eventually founded BlockTower Credit, an institutional private-credit investment business under BlockTower Capital that managed up to $2 billion in assets focused on bringing credit originations on-chain.

Co-founder Lucas Vogelsang previously co-founded Centrifuge in 2018, a protocol for tokenizing real-world assets for use in decentralized finance ecosystems. He served as Centrifuge’s chief executive officer before becoming a venture partner at Blockchain Capital.

At J.P. Morgan, co-founder Keerthi Moudgal led product development at Kinexys, the enterprise blockchain division formerly known as Onyx. Her work included distributed ledger infrastructure for institutional bank settlements and intra-day repurchasing operations.

Miao and Vogelsang initially collaborated when BlockTower Credit selected Centrifuge as its tokenization infrastructure provider. They later connected with Moudgal to assess structural gaps in existing financial technology offerings. The founders concluded that early efforts to bring real-world credit onto blockchains focused narrowly on asset tokenization or capital distribution instead of the core administrative software used by lenders. All three executives left their roles in late 2023 to establish Tare.

Several companies already provide digital or blockchain-based solutions in fixed income and private lending. Figure Technologies operates a blockchain platform for home equity lines of credit (HELOCs), mortgage originations, and secondary market trading. Centrifuge provides asset tokenization infrastructure connecting credit originators with decentralized liquidity pools. Octaura, an electronic trading platform launched by a consortium of major Wall Street banks, focuses on syndication and secondary trading tools for collateralized loan obligations (CLOs) and corporate loans.

Tare is targeting the software stack that manages loan servicing throughout its lifecycle rather than trading venues or tokenization wrappers. Aleks Larsen, general partner at Blockchain Capital, said the startup’s primary competition is legacy, off-chain database administration platforms rather than existing blockchain protocols.

The venture investment comes amid broader institutional interest in tokenized real-world assets (RWAs). BlackRock and Franklin Templeton have launched tokenized money market funds on public blockchains, while financial institutions continue testing distributed ledgers for repo markets and cross-border payments.

Estimates from consulting firms including Boston Consulting Group and Citigroup project that the total addressable market for tokenized financial assets could reach several trillion dollars by 2030.