DigitalToday reporter Chi-gyu Hwang (황치규)] Symbiotic, a collateral market platform backed by Paradigm, has launched Core V2.

According to a recent report by The Block, a Symbiotic official said Symbiotic started as a restaking protocol, but Core V2 is an upgrade that formally marks its shift to a collateral market. The official said the protocol will focus on building collateral market infrastructure and products going forward.

Symbiotic said DeFi applications such as insurance pools, credit protocols and real-world asset (RWA) vaults can use a shared collateral base without having to lock up separate capital.

V2 is designed to keep capital generating yield even when it is not being used as collateral for other financial products. Capital deposited in Symbiotic vaults automatically moves into major lending protocols such as Aave and Morpho to earn base yield when it is not needed. When needed, the framework automatically retrieves the funds.

The first product based on Core V2, Liquid Lane, was launched last month. It supports underlying capital continuing to earn yield while a single vault processes multiple tokenised asset redemptions at the same time. Investors can exchange tokenised funds and private credit products into stablecoins almost instantly, without redemption periods that can take months.

Symbiotic raised $29 million in a Series A round led by Pantera Capital in April last year. Coinbase Ventures and others participated, along with about 100 angel investors. Earlier, it raised $5.8 million in a seed round jointly led by Paradigm and Cyber Fund.