The Private Credit-Focused Robo-Advisor Is the Second Team to Build on Goldfinch’s Interoperable, Open-Source Protocol
Heron Finance is a robo-advisor focused exclusively on offering U.S. accredited investors access to the burgeoning private credit asset class, and starting today, accredited investors can join the platform’s waitlist here.
Through Heron Finance, investors simply choose a strategy based on their risk tolerance and investment objectives, and then begin investing. The platform builds each client a diversified portfolio of private credit deals, and automatically rebalances their portfolio over time. Deals typically pay interest monthly, creating a steady stream of payments back to the investor, which can be automatically reinvested.
“For decades, private credit has been a staple investment for the most sophisticated institutions,” said Mike Sall, co-founder of Heron Finance. “It’s been difficult for individuals to access private credit, and even when they can, they are typically stuck with multi-year lockups. Heron Finance is changing that by offering a simple way for investors to diversify into private credit, and providing key advantages like automated investment strategies, multiple risk-tiers, and better liquidity than traditional credit funds.”
Heron Finance is built on Goldfinch, an open-source lending protocol that has been used to originate over $110M of loans in over 20 countries since its founding three years ago. Goldfinch leverages blockchain technology to create a global, interoperable ecosystem of loans from many independent lenders, all using the same decentralized infrastructure.
“Our team has consistently led the way in taking a compliant approach to blockchain, including creating the first non-fungible token for compliance with know-your-customer requirements in 2021. We’re thrilled to be the first SEC-registered robo-advisor focused primarily on the private credit space,” added Sall.
Heron Finance’s announcement makes it the second business to build on Goldfinch, following similar news last week from distressed lender, Variable Finance.
Heron Finance uses blockchain to reduce the cost of money transfer and increase transparency for investors, while providing a foundation for interoperable and portable loans. Yet, investors on Heron Finance do not need to provide crypto or be experts in blockchain technology to use the product–Heron Finance simply relies on blockchain infrastructure for its benefits.
“We built Heron Finance on the open source, blockchain-based Goldfinch protocol because we believe investors deserve better transparency and costs compared to traditional finance, and because we believe investors will come to demand the portability and interoperability that they get from having their investments live onchain,” said Blake West co-founder and CTO of Warbler Labs, the parent company of Heron Finance.
Heron Finance’s launch coincides with a private credit boom, as both macroeconomic and regulatory tailwinds are currently benefiting the sector. Morgan Stanley predicts that the size of the private credit market will grow from $1.4 trillion in 2023 to $2.3 trillion in 2027.
“Private credit’s strong returns are appealing for a wide swath of investors, particularly in the current macroeconomic environment,” said Sall. “And we see that opportunity continuing to expand, as investors look to diversify away from traditional stocks and bonds and into alternative investments like private credit.”
About Heron Finance
Warbler Advisory, Inc. d.b.a. Heron Finance, is an SEC-registered investment advisor focused on private credit and built on Goldfinch, a decentralized lending protocol. Heron Finance is expanding access to private credit, traditionally reserved for institutions and high net-worth individuals, by providing accredited investors access to an asset class which has been prized for its higher and more predictable returns in comparison to stocks. Heron Finance was built by the a16z-backed Warbler Labs team, which also supports the development of the Goldfinch protocol.
Founded in 2020 by ex-Coinbase engineers, Goldfinch is an interoperable, open-source lending protocol that leverages blockchain technology, and is designed for real businesses around the world. Goldfinch has securely powered over $110M of loans to businesses across 20 countries.