Where the yield actually comes from.
Northvault generates yield by deploying pooled stablecoin deposits into a curated, diversified portfolio of business loans across the EU, sourced from licensed loan originators with buyback guarantees. The platform takes a spread between the rate borrowers pay and the rate paid to depositors. Detailed methodology is in the FAQ.
Four parties. No black box.
Vetted European businesses — logistics, wholesale, healthcare SMEs, renewables — looking for working capital. Loans are typically 6–24 months.
Licensed EU lending companies who originate, underwrite and service the loans. They keep skin in the game (typically 10%) and stand behind a buyback obligation.
We pool USDC/USDT deposits, deploy across loans within strict diversification limits, monitor performance, and distribute yield to depositors daily.
Receive a share of the yield, paid daily into your balance, in the same stablecoin you deposited. Withdraw any time to an allowlisted wallet.
How the numbers actually work.
Northvault retains a margin between what borrowers pay and what depositors receive. The spread covers loan losses, operating costs, and our profit.
- Borrower pays+15.0% APR
- Originator skin / servicing−2.0%
- Loan losses (book average)−2.5%
- Northvault operating margin−2.5%
- You receive+8.0% APY
Illustrative. Actual rates vary by tier, asset and book composition. Subject to change.
If an originator becomes insolvent, the buyback obligation is impaired. We mitigate via diversification (≤25% per originator) and counterparty monitoring.
A macro downturn could push defaults above buyback capacity. We hold reserves to absorb stress; in extreme scenarios, depositor returns can be impaired.
USDC and USDT depend on issuer reserves and policy. Significant depeg events have occurred historically. We monitor reserves and split exposure across both.
Withdrawals are paid from a liquidity reserve. In extreme redemption events, withdrawals may be queued. The reserve target is 15% of AUM at minimum.
Multi-sig treasury reduces but does not eliminate custody risk. Solana smart contract or chain-level events are an exposure.