This is a guest post written by Wojtek Pawlowski the Co-Founder & CEO of Accountable
There's a gap in institutional credit that everyone working in it knows exists and almost nobody talks about directly.
When an allocator deploys capital into a private credit strategy, they get a legal agreement, a quarterly report, and a relationship. What they don't get is a real-time view of whether the borrower who received their capital is still solvent. When that report does arrive, it's usually a self-reported PDF: trust assumed, not proven. They won't know the real picture until the next cycle. Sometimes they find out a different way.
This isn't a new problem. It's just a problem the industry decided to manage rather than solve.
The tools for solving it haven't existed until recently. Onchain infrastructure has changed that equation, but only if you build verification into the product from the start rather than bolting transparency on as a feature. Most credit vaults launching today don't do that. They show you an address, maybe a dashboard, and call it transparency.
That's not verification.
Real verification means three things: the data is pulled directly from the source, not self-reported; the proof is cryptographically independent so you don't have to trust the publisher; and the picture is continuous, not a snapshot. All three have to be true simultaneously or you haven't actually closed the information gap.
Verification Built In, Not Bolted On
The Valos vault that launched this month is the clearest version of this we've built yet, and it's worth walking through exactly why it's structured the way it is.
Valos manages over 50 active loans and has deployed more than $1 billion to tier-1 crypto market makers. That's a serious institutional loan book. The problem historically has been that allocators entering a credit strategy like this are buying the manager's track record and their quarterly narrative, not a live view of the underlying positions.
This vault changes that structure. Every borrower on the Valos tokenized loan book is connected to Accountable's Data Verification Network (DVN). DVN pulls financial data directly from source systems and generates continuous cryptographic proofs of financial health. When an allocator looks at their position in the vault, they can verify collateral coverage, loan deployment, and borrower solvency in real time, not when the next report drops.
The key design decision is what doesn't get exposed in that process. Borrowers don't hand over API keys or reveal trading strategies. Allocators don't get access to the full book. DVN is specifically built to prove financial health without requiring either party to expose what they'd consider competitively sensitive. Privacy and transparency stop being opposites when the verification is cryptographic rather than disclosure-based.
The vault launched with $100M in initial allocations and $200M in current capacity, settling in AUSD on Monad. Several borrowers in the existing Valos loan book are now exploring adopting the verification infrastructure within their own operations, which is the actual leading indicator that this model is working: the borrowers who've been verified are choosing to use it more broadly.
Capital Is Moving, But Verification Isn't Keeping Up
The information gap that let FTX and Three Arrows operate undetected for as long as they did wasn't a failure of regulation or auditing alone. It was structural: markets couldn't price risk they couldn't see. That problem doesn't go away with better auditors. It goes away when the infrastructure makes risk continuously observable.
Galaxy closed a $75M tokenized CLO this year. Valos just launched a $100M credit vault.
These aren't experiments anymore. They're live instruments held by allocators who now have legitimate grounds to expect institutional-grade real-time visibility, because that visibility is technically possible and someone has to offer it.
The snapshot-based model served its purpose. Quarterly reports were the best available tools when the alternative was nothing. But institutional capital moving at this velocity can't be risk-managed on a 90-day lag.
The infrastructure has caught up. The next institutional credit blowup won't happen because verification was impossible. It'll happen because someone chose not to build with it.
