Space and Time rolls out virtual vaults for institutional onchain lending

Space and Time (SXT), a level-1 data blockchain that secures onchain finance projects, has launched a virtual vault platform that it says is purpose-built for institutional lending.

The Microsoft-backed blockchain said on Tuesday that its new virtual vaults can be configured by institutional lenders and borrowers to their specific agreement, with cryptographically verified, continuously updated visibility into borrower collateral across the centralized exchanges and decentralized finance (DeFi) protocols where it actually sits.

Real-time verification of collateral has long vexed the institutional lending sector, with generic solvency metrics falling short of practical needs.

“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,” said Nate Holiday, co-founder of Space and Time and CEO of MakeInfinite Labs, in a statement shared with Cointelegraph.

Screenshot of SXT Chain Explained. Source: YouTube

Each vault is configured to the specific terms of its lending agreement, that is, which venues to monitor, which assets qualify as eligible collateral and what thresholds trigger alerts, according to the statement.

Virtual vaults extend the platform into onchain credit, bringing verifiable controls and reporting to the systems institutional lenders and borrowers actually need to operate at scale, the company said.

Microsoft made VC investment, then integrated SXT with Fabric intelligent data platform

M12, Microsoft’s venture capital arm, participated in Space and Time’s Series A funding round and led a 2022 strategic funding round, according to Token Terminal data.

SXT’s most recent round, in August 2024, raised $20 million from investors including Lightspeed Faction and Arrington Capital, brought the total to $50 million. A company spokesperson declined to comment on current financing plans.

Space and Time was integrated with Microsoft Fabric a year ago and was recently designated a Microsoft co-selling cloud solution. The software giant touts Fabric as an end-to-end “intelligent data platform” that its deployed across its cloud offerings.

Since then, the Space and Time Foundation has partnered with Southeast Asia’s Indomobil to onboard 50,000 students to the ecosystem. That program uses Space and Time to store proof of course completion and students pay for courses in SXT.

Space and Time (SXT) market cap over last 12 months. Source: Token Terminal

The blockchain’s native token, SXT, is deployed on multiple chains, including Ethereum and Base. At time of publication, CoinMarketCap data showed there were 368,350 token holders. SXT had a market cap of $21.92 million.

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