GEORGE TOWN, Cayman Islands, July 01, 2026 (GLOBE NEWSWIRE) -- Symbiotic, the collateral markets platform backed by Paradigm, Pantera Capital, CyberFund, and Coinbase Ventures, today launched Symbiotic Core V2, an infrastructure upgrade that lets applications across insurance, credit, and tokenized asset liquidity draw on shared collateral infrastructure, with each vault's risk and terms defined separately, while capital stays productive in lending markets when it is not actively needed. Symbiotic became known for shared security, the category much of the market calls restaking, but a growing number of applications began using it to back financial obligations rather than secure networks. Core V2 formalizes that shift.
More than $7 trillion sits parked in US money market funds today, most of it earning a single rate and doing a single job. However, capital that backs more than one obligation at once is not new to finance. Arranging it takes legal teams, outside advisors, and months of structuring, so in practice it stays limited to the largest institutions, and everyone else's capital sits committed to a single purpose at a time. That is the ceiling on how efficiently collateral can work.
Core V2 removes that ceiling. According to Symbiotic's capital efficiency analysis, capital deployed through Symbiotic vaults can be approximately 70 percent more efficient than equivalent standalone liquidity pools. Core V2 turns collateral into a shared base that applications across insurance, credit, and tokenized asset liquidity can draw from, each vault under its own risk terms and enforcement, so capital is reused across the system instead of locked into one single-purpose pool. Allocation limits, accepted collateral, recall conditions, and loss terms are set per vault and enforced by code. The capital backing an obligation earns continuously, generating returns across base lending yield, premiums, and redemption spreads.
This runs on Capital Facilities, the framework that coordinates how vault capital is made available, used, and recalled. Capital committed to a vault does not have to sit idle while it waits for an obligation, because curators can route it into whitelisted, blue-chip lending protocols, Aave and Morpho, where it earns a base yield while remaining bound to its Symbiotic obligations. When an obligation is triggered, the capital is recalled from the adapter and enforcement proceeds without manual intervention. Providers can earn from base staking yield, premiums for backing obligations, and the lending return on capital.
“Collateral markets are not a new financial idea. What is new is making them composable, enforceable, and capital-efficient onchain. Onchain finance cannot scale if every application has to rebuild its own capital pool. It needs collateral that can move through DeFi rails, support real obligations, and execute by predefined rules. Core V2 is a major step toward turning onchain finance into market infrastructure capable of supporting institutional-scale capital flows through programmable collateral.” – Misha Putiatin, co-founder of Symbiotic.
Nexus Mutual plans to use Symbiotic for additional DeFi cover capacity, and Cap uses it for credit guarantees. Liquid Lane, announced earlier this month, is one of the first applications built on Core V2: a shared capital layer for instant RWA settlement, where one vault services redemptions across many asset types through a competitive settlement market, while the capital earns between events. Midas has been announced as the first issuer and Fasanara Capital, the $6 billion institutional asset manager, as the first curator. Liquid Lane is also designed to strengthen the markets its capital flows into. Tokenized assets have been difficult to use as collateral because long redemption windows make them slow to liquidate. Through RedStone Settle, Liquid Lane is intended to enable markets such as Aave and Morpho to settle those liquidations on demand, making it easier to support a broader range of tokenized assets as collateral.
"Cap brings real, sustainable yield onchain by scaling institutional credit beyond the limits of traditional overcollateralized models. The breakthrough enabling that has been shared collateral: infrastructure combines more efficient access to capital for borrowers with enforceable guarantees for the market. That is what Symbiotic makes possible, and why it has become core to how Cap is building.” - Benjamin Sarquis Peillard, Founder and CEO, Cap
Core V2 is available today, with audits complete and contracts deployed to mainnet. Builders can integrate collateral-backed applications and access the shared capital base, curators can configure and launch vaults under the updated framework, and capital providers can allocate to a broader set of capital deployment strategies.
About Symbiotic
Symbiotic powers collateral markets, where capital is committed to financial obligations and enforced by code. It backs products across credit, insurance, and RWA, with Chainlink, Nexus Mutual, ether.fi, and Cap Labs live in production. Symbiotic is backed by Paradigm, Pantera, CyberFund, and Coinbase Ventures.
