DeFi vault platform Veda secured $18 million in funding to expand its infrastructure for yield products, including yield-bearing stablecoins. The raise was led by CoinFund and joined by Coinbase Ventures, Animoca Ventures, BitGo, Mantle EcoFund, GSR, Relayer Capital, PEER VC, Draper Dragon, Credit Neutral, Neartcore, and Maelstrom.
Angel investors included co-founders of Anchorage, Ether.Fi, and Polygon.
Veda, launched in 2024, develops tools for tokenizing decentralized finance applications. These include liquid staking tokens, yield-based savings, and stablecoin yield instruments. Its vault infrastructure powers products like Ether.fi’s Liquid, Mantle’s cmETH, and the Lombard DeFi Vault.
Veda’s Total Value Locked Reaches $3.3 Billion
Data from DefiLlama shows that Veda surpassed $3.3 billion in total value locked (TVL). This increase began in late 2024 and followed the integration of multiple yield-generating platforms.
Veda supports cross-chain DeFi vaults, making it easier for asset issuers to offer stablecoin yield to users. The company reported rising demand for Bitcoin yield solutions, a sector often viewed as difficult due to BTC’s native limitations.
Sun Raghupathi, Veda’s co-founder and CEO, said:
“Demand for dependable Bitcoin yield is high, but harvesting even a modest few-percent yield is often complex and time consuming.”
Veda is working with Lombard, a developer of liquid-staked Bitcoin infrastructure on Babylon, to address this issue.
CoinFund Backs Rise of Yield-Bearing Stablecoins
CoinFund managing partner David Pakman stated that the firm’s backing of Veda aligns with the shift toward yield-bearing stablecoins. He explained that enabling fiat and digital assets to generate stablecoin yield directly onchain is a logical evolution in DeFi.
“The natural next step for wealth onchain is to earn yield and to make your assets productive,” Pakman said.
He also pointed to the impact on traditional finance:
“Once we have more and more yield-bearing stablecoins, traditional bank savings accounts will be endangered and need to evolve.”
The presence of stablecoin yield outside regulated banking channels has drawn attention from traditional finance stakeholders.
USDC and USDT Dominate as Stablecoin Yield Grows
The stablecoin market continues expanding. USDT (Tether) leads with nearly $156 billion in circulation. USDC (Circle) follows with over $61 billion, according to RWA.xyz.
Circle CEO Jeremy Allaire said that stablecoin adoption is close to a major turning point.
Veda’s platform helps issuers develop DeFi vaults that produce stablecoin yield, meeting growing onchain demand. By supporting assets across blockchains, Veda contributes to a market shift toward programmable, yield-generating stablecoins.
