Cap Investor Update Q1 2026

We're excited to share our Q1 2026 investor update! In this update, you will find highlights on our progress, upcoming priorities, and asks.

Table of Contents

• Highlights and Achievements

• Financial performance

• Review of Q4 goals

• Q1 roadmap and goals

Highlights and Achievements

1. Originated a $100M revolving credit facility

In Q1, Cap originated a $100 million revolving credit facility to Susquehanna Crypto, one of the largest high-frequency trading firms in the world. To our knowledge, this is the largest credit facility of its kind ever originated through onchain credit markets.

What distinguishes this transaction beyond its size is what it reflects about the state of institutional adoption in onchain credit markets. Institutions of this caliber do not participate at this scale without satisfying rigorous internal requirements around counterparty quality, compliance, and operational security. Their decision to borrow through Cap reflects a considered determination that those requirements are met. We believe this marks an inflection point: the conditions that have historically kept regulated financial institutions at arm's length from onchain infrastructure have been addressed by Cap, and these firms are beginning to move accordingly.

2. Successful expansion into BTC markets

Cap established a meaningful presence in Bitcoin capital markets in Q1, onboarding several Bitcoin liquidity providers into the underwriter set. Bedrock LPs led this expansion, growing to over $160 million in deposits by the quarter’s end.

The timing reflects a structural shift in the market. As onchain Bitcoin yield opportunities have compressed, capital that was previously allocated to crypto-native yield strategies is now rotating toward more durable alternatives. Cap offers a yield opportunity derived from credit spreads on USD-denominated loans, the largest source of yield in financial markets. Paired with a borrower set of blue financial institutions, this has allowed Cap to close underwriting deals continuously and at scale. We expect this trend to accelerate as additional Bitcoin projects seek yield infrastructure that performs independently of crypto market conditions.

Financial performance

1. Borrower adoption has meaningfully improved in Q1

Borrower adoption has ballooned in Q1, with an increase of 175% in total borrowers and a 300%+ increase in total loans outstanding. New loans originated have been both term loans and revolving credit facilities to blue chip financial institutions. In Q2, we will expand to new loan transaction types, such as leverage buyouts.

2. Cap’s yield fundamentals have been highlighted during the recent crypto bear market

The majority of yield in crypto derives from sources that are structurally correlated with Bitcoin prices: BTC-backed lending, basis trading, and token incentives that expand in bull markets and compress in bear markets. As crypto has entered a more difficult market environment, yield from these circular economies has declined materially. Cap is structurally insulated from this dynamic. Our yield is derived from credit spreads on USD-denominated loans, a source that is independent of crypto market conditions and does not compress when Bitcoin prices fall. This is reflected in our returns: Cap currently leads comparable products in yield, at a moment when most alternatives are at their weakest.

Notably, Cap's yield ranks also among the top 5% of comparable yield coins currently available.

3. Non-farming deposits have increased to 89.7% of total deposits

Deposits not associated with public incentive farming have grown from 59.3% to 89.7% of total deposits over the course of Q1, a meaningful reflection of organic demand. Non-farming deposits have largely come from neobank earn product integrations and new guarantee collateral deposits from underwriters. The main driver of farming deposits remains unstaked cUSD, at 30% of USD deposits. This on par with industry peers, such as Ethena at 40% unstaked USDe and Sky at 23% unstaked USDS deposits. This is an important development for Cap, as we transition from the initial bootstrapping phase to organic usage.

1Q26 Goals Review

Goals met

BUSINESS

Reach 30% utilization of USD reserve

After an initial period of onboarding restakers and other types of underwriters, our sales team has begun closing several underwriting transactions. As a result, we’ve exceeded our goal for utilization, with 60% of our USD reserves lent to borrowers at Cap. This has pushed our yield meaningfully above our peer group.

PRODUCT

Cap.app redesign

The new website was completed, with a cleaner display of Cap’s value proposition and improved appearance for our institutional user base.

PRODUCT

MegaETH deployment

With MegaETH now on mainnet, we deployed cUSD and stcUSD on the chain. We expect user campaigns to start in Q2, where we’re working with the Mega team to expand the use of stcUSD.

Goals not met

BUSINESS

ICO & Stabledrop

We did not proceed with ICO and stabledrop plans. Days before our scheduled ICO, crypto markets entered a bear market, with ETH falling over 30%. With this market backdrop, we made the decision to postpone the sale. We do not currently have a date for the sale as the market is not conducive to public token fundraising. Our team is focused on developing Cap’s business as we wait for crypto markets to normalize.

BUSINESS

$1Bn in TVL

We aim to reach $1Bn in TVL deposits during Q2, coming from a mix of USD deposit growth and a continued expansion of guarantee collateral deposits.

2Q26 Goals

PRODUCT

Cap Protocol Updates

Cap is already working with traditional institutions that have not borrowed from onchain markets before. These relationships have given us direct insight into what legacy borrowers need, and where gaps exist with current credit products in crypto.

The gaps have starved crypto markets from scalable borrow demand. Cap’s next project will directly address this gap and unlock a new wave of adoption for onchain credit markets. It is by far our boldest move yet, but a necessary one for our industry to escape the circular crypto-native economy today.

PRODUCT

SEAL security certification

Our team is constantly reviewing new ways to improve our security stack. Currently, Cap has a comprehensive and layered approach to security, detailed in this posts. In addition to these efforts, our team is now working with the SEAL security team to certify our security practices and ensure we are meeting the highest industry standards.

BUSINESS

Middle East expansion

After a successful expansion into the East Asian LP market in Q4 and Q1, Cap is expanding efforts to the Middle East. As part of this expansion, we are hiring for a new position of Middle East Lead. This role will be in charge of developing our institutional partnerships and LP relationships in that region, with the aim of developing the three sides of our market.

BUSINESS

Reach $1Bn in total deposits

In order for Cap’s fundamental flywheel to develop organically, our platform must reach critical mass. We’ve identified $1Bn in deposits as that mark, and we will continuously strive towards this milestone.

BUSINESS

Increase guarantee collateral to above $500M

Guarantee collateral deposits at the end of Q1 stand at $228M. Through our existing pipeline of upcoming loans and our initial expansion into middle eastern markets, we look to increase this figure to $500M.

BUSINESS

Expand loan transaction types

Currently, Cap has issued term loans and revolving credit facilities to trading firms. In Q2, we aim to expand our loan origination business to other types of loans, such as leverage buyouts, inventory financing, payment financing, and term loans to non-trading companies.

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