Birch Hill raised $4 million in a new funding round, with ParaFi Capital, Castle Island Ventures, and Nascent among the investors. The round size was not disclosed. The company has raised a total of $6.5 million.

The New York-based financial services firm aims to be more than just another RWA treasury: its core business is evaluating and structuring multifamily housing, agriculture, and energy loans, then bringing them on-chain within the U.S. regulatory framework. It is already an official vault curator on Morpho and has applied to FINRA for broker-dealer status. The team includes veterans of Goldman Sachs and BlackRock.

A signal worth watching is the convergence of traditional credit assets, regulatory licensing pathways, and DeFi distribution mechanisms. In the short term, watch for licensing and the launch of the first assets; in the long term, the question is whether on-chain credit can develop sustainable risk-pricing capabilities.

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