Space and Time, a data blockchain focused on securing on-chain finance, has officially introduced Virtual Vaults – a platform purpose-built for institutional bilateral lending in digital asset markets. The launch aims to resolve persistent issues around collateral transparency and verification, especially as more regulated entities seek deeper exposure to crypto finance.
Real-time collateral oversight replaces point-in-time audits
Institutional borrowers often split collateral across decentralized finance (DeFi) protocols and centralized exchanges, with positions shifting rapidly as trades execute. Traditional verification – quarterly attestations or snapshot reports – frequently lags behind these movements. Virtual Vaults deliver continuously updated, cryptographically verified data, letting lenders monitor collateral dynamically both before and after capital deployment. Each vault is customized to the lending agreement’s specific terms: which venues are tracked, which assets qualify as collateral, and what thresholds trigger alerts.
Built for institutional needs
Nate Holiday, co-founder of Space and Time and CEO of MakeInfinite Labs, stated: “We built Space and Time so both institutions and onchain protocols could verify the data they act on, and Virtual Vaults are the clearest expression of that yet. 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.”
The foundation emphasized that Virtual Vaults are chain-agnostic, allowing each lending relationship to define monitored venues, eligible collateral, alert thresholds, and reporting granularity. The product is designed for banks, prime brokers, asset managers, and lending platforms that require preselected counterparties, negotiated terms, and continuous collateral visibility rather than permissionless pool exposure.
Regulatory tailwinds
The rollout comes as regulatory frameworks evolve in key jurisdictions. Progress on stablecoin legislation in the United States and the implementation of Europe’s Markets in Crypto-Assets (MiCA) framework are expected to clarify rules for digital asset activity, potentially opening the door to wider institutional involvement. Virtual Vaults’ verified, real-time data is positioned to align with these emerging compliance expectations.
Space and Time is backed by M12, Microsoft’s venture arm. MakeInfinite Labs, which contributed to the platform’s development, has raised $50 million from M12 and other investors to build data infrastructure for the digital economy. Virtual Vaults are now available, marking the latest step in the project’s effort to connect real-world financial requirements with the fragmented realities of digital asset markets.
