CAP Labs
CAP Labs operates a three-sided covered credit protocol on Ethereum issuing cUSD and stcUSD stablecoins, connecting institutional borrowers (Susquehanna, Flow Traders, FalconX) with USD depositors and asset underwriters (EtherFi, Bedrock) via automated financial guarantees.
- Company typePrivate
- Founded2024
- HeadquartersNew York, United States
- Headcount1–10
- GTM typeB2B
- OfferingSoftware
What CAP Labs does
CAP Labs operates a three-sided covered credit platform built on Ethereum that connects USD depositors, underwriters/delegators, and institutional borrowers. The protocol issues cUSD, a digital dollar stablecoin redeemable 1:1 for approved collateral assets including USDC and tokenized money market funds such as WisdomTree's WTGXX, and stcUSD, a yield-bearing version that earns returns from both base collateral strategies and allocations to institutional yield operators. The platform's core innovation is its automated Financial Guarantee Market, where institutional borrowers must secure coverage from delegators who stake ETH, BTC, or other assets as collateral before accessing unsecured USD loans at 9-12% rates.
Under the hood, Cap's technology stack combines smart contract-enforced credit underwriting with shared security infrastructure on EigenLayer (AVS) and Symbiotic, automatic slashing for operator accountability, multi-oracle pricing (RedStone, Chainlink), and cross-chain deployment via LayerZero OFT (Ethereum, MegaETH). The protocol supports a broad collateral menu including wstETH, WBTC, uniBTC, weETH, and tokenized RWA assets. OpenCover/Nexus Mutual integration provides native insurance coverage against smart contract and depeg risk.
The business model captures revenue through three streams: interest spread between USDC risk-free rates paid to depositors and 9-12% charged to borrowers, guarantee premium fees of up to ~6% annually on underwritten notional, and platform utilization fees on deployed USD reserves. The go-to-market combines enterprise field sales for regulated institutional borrowers (Susquehanna Crypto, Flow Traders, FalconX, M11 Credit, Bedrock) with self-serve protocol access and community-driven incentive programs (Frontier, Homestead, CAPS/COGs points). Total platform deposits stand at $267M+ with $200M+ in guarantees issued as of Q1 2026, across 30+ institutional borrowers and 19,470+ Homestead users, supported by a lean team of 1-10 employees based in New York.
CAP Labs firmographics
Firmographics- Name
- CAP Labs
- Legal name
- Cap Labs
- Website
- https://cap.app
- Company type
- Private
- Founded year
- 2024
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- CAP Labs operates a three-sided covered credit protocol on Ethereum issuing cUSD and stcUSD stablecoins, connecting institutional borrowers (Susquehanna, Flow Traders, FalconX) with USD depositors and asset underwriters (EtherFi, Bedrock) via automated financial guarantees.
- Ownership category
- akta.pro rank
CAP Labs industry classification
Industry- Product category
- DeFi Credit Protocol
- NAICS
- Depository Credit Intermediation (5221), Financial Transactions Processing, Reserve, and Clearinghouse Activities (52232)
- SIC
- Finance Services (6199), Miscellaneous Business Credit Institution (6159), Security & Commodity Brokers, Dealers, Exchanges & Services (6200)
- akta.pro primary industry
- Institutional DeFi & On-Chain Liquidity Infrastructure (Permissioned DeFi, Lending) (FSAGAMAG)
- akta.pro secondary industries
- Tokenized Bank Deposit & Commercial Bank Money Issuers (FSADADAB), Tokenized Collateral & On-Chain Credit Infrastructure (Collateral Mgmt, Liquidations) (FSAGAMAK), Crypto Borrowing & Margin Credit Facilities (FSADAFAC), Private Credit & Loan Tokenization Platforms (FSADAEAD)
Keywords
Where CAP Labs is headquartered
LocationHeadquarters
- HQ city
- New York
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
CAP Labs business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Marketing or Sales, Operations, Others
Revenue model
- Interest Spread on USD Loans: Cap generates revenue from the spread between what dollar depositors earn (USDC risk-free rate) and what borrowers pay (unsecured USD borrow rate of 9-12%). The difference (Excess Value) is distributed among market participants including underwriters and protocol.
- Guarantee Premium Fees: Underwriters earn deterministic guarantee fees (up to ~6% annually) on notional collateral for providing coverage on institutional loans. Fees streamed continuously in USD-denominated assets.
- Platform Utilization Fees: Revenue generated from 60% utilization of USD reserves lent to borrowers at Q1 2026. Non-farming deposits grew to 89.7% of total deposits, indicating organic demand generating protocol fees.
Go-to-market motion3 records
Distribution channels4 records
Marketing channels9 records
CAP Labs product offering
Product offeringCore offering
CAP Labs operates a three-sided covered credit platform on Ethereum consisting of cUSD (a digital dollar stablecoin redeemable 1:1 for collateral assets) and stcUSD (a yield-bearing stablecoin). The platform connects institutional borrowers with USD liquidity from depositors, while a separate delegator layer provides financial guarantees on each loan through automated smart contracts. Cap charges interest spreads on USD loans, guarantee premiums to underwriters, and platform utilization fees from its lending activity.
Product overview
Cap is a three-sided covered credit platform for USD yield, private credit, and financial guarantees, built by CAP Labs. The platform consists of cUSD (Cap's digital dollar stablecoin redeemable 1:1 for collateral assets) and stcUSD (the yield-bearing version that earns yield from institutional credit allocations). The Credit Engine connects dollar depositors with vetted institutional borrowers through an automated Financial Guarantee Market where operators must receive coverage via escrowed collateral before accessing capital. The Cap Stablecoin Network (CSN) manages collateral with approved partners. Supporting products include the Homestead and Frontier incentive programs (with COGs and Caps points), native OpenCover insurance, and institutional restaking partnerships via EigenLayer and Symbiotic.
Differentiator
Problem solved
Functional benefit
Brands
- cUSD: Cap's digital dollar asset, redeemable for available collateral assets such as blue chip stablecoins and regulated money market funds. Users receive 1 cUSD for every dollar deposited.
- stcUSD
Products and services
- cUSD (Cap Digital Dollar) Cap's non-yield-bearing stablecoin asset, redeemable 1:1 for supported collateral assets including USDC and tokenized money market funds. cUSD is protected from borrower default by financial guarantees issued on Cap's platform.
- stcUSD (Staked Cap USD) The yield-bearing version of cUSD that earns yield from both the base strategies of cUSD collateral assets and Cap's allocations to institutional yield operators. Accrues yield automatically on-chain.
- Cap Credit Engine The platform's credit mechanism that connects dollar depositors, underwriters, and institutional borrowers. Institutions self-select in and out of borrowing based on their ability to meet borrowing costs.
- Cap Financial Guarantee Market The automated guarantee market that underwrites each individual loan. Operators seeking to borrow must receive coverage via escrowed capital that can be retrieved if they default. All functions are automated by Ethereum smart contracts.
- Cap Stablecoin Network (CSN) A group of select partners who participate in cUSD's collateral management and yield generation. Enables instant settlement of payment stablecoins into Cap and establishes a transparent foundation for stablecoin issuance.
- Cap Vaults Smart contract vaults for underwriters to deposit collateral and allocate to institutional borrowers. Supports multiple token types including wstETH, WBTC, LBTC, uniBTC, weETH, sfrxUSD, solvBTC, XAUM, and AA_FalconXUSDC on Symbiotic and EigenLayer networks.
Quantifiable outcome
- Zero slashing events during October-November 2025 crypto market stress despite $155M in redemptions
- +4 more outcomes
Companies that use CAP Labs
Customer profileNamed customers9 records
Segments4 records
Ideal customer profiles4 records
CAP Labs technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration29 records
Feature6 records
CAP Labs partnerships and signals
Strategic signalPartnerships
19 partnerships are on record, tiered core and strategic.
- EtherFicoreLargest delegator in shared security. Delegates restaked ETH via Symbiotic to underwrite Cap borrowing activity. Backstops system as authorization layer for borrowing. Earns USD-denominated yield on weETHs from real credit activity.
- SymbioticcoreShared security infrastructure providing flexible rails for collateralized products. Enforces automatic slashing via smart contracts. Enables Cap's credit use case through universal collateralization framework.
- FalconXcoreInstitutional prime broker and lender. Originates, services, and manages over-collateralized institutional loans. Deploys borrowed capital into prime brokerage financing, margin trading, OTC structured deals, working capital loans secured by digital assets in tripartite custody.
- M11 Credit (Maven 11)coreInstitutional credit arm of Maven 11 with six years of experience. Borrows from Cap and allocates to structured credit. $128M TVL structure with FalconX via Pareto protocol. Brings institutional credit underwriting expertise.
- MegaETHstrategicCap launched on MegaETH as LayerZero OFT asset. cUSD and stcUSD bridgeable to MegaETH for high-performance stablecoin use cases. Sub-millisecond latency and ~100,000 TPS enabling real-time applications.
- WisdomTreecoreWisdomTree's WTGXX Government Money Market Fund joined Cap Stablecoin Network as approved collateral asset. First time any lending smart contract was whitelisted by a regulated asset manager. RedStone provides oracle for reserve asset valuation. Enables institutions to mint cUSD/stcUSD using WTGXX.
- BedrockcoreInstitutional liquid restaking protocol and Bitcoin yield layer. Participates as both delegator ($135M+ delegated via uniBTC) and operator on Cap. Runs fully on-chain market neutral strategies including basis trading and stablecoin incentive capture.
- YieldNestcoreRestaker in EigenLayer system securing Flow Traders' activity. First operator-restaker deployment on EigenLayer. Handles delegation, monitoring, and performance logic for restaked OETH.
- EigenLayercoreRestaking infrastructure enabling reuse of staked ETH or LSTs to secure Cap's AVS. Restakers delegate stake to trusted operators; automatic slashing ensures accountability if operators misbehave.
- OpenCovercoreIntegrated Nexus Mutual coverage directly into Cap UI. Users can opt into coverage against Cap smart contracts, cUSD depeg, and Cap Pendle Markets in same transaction. Coverage issued atomically alongside primary actions.
- Nexus MutualcoreMember-owned risk pool providing smart contract and protocol coverage. OpenCover sources protection from Nexus Mutual and packages into simple interface. Longest-running battle-tested coverage primitive in crypto.
- PendlecoreYield tokenization protocol where Cap assets trade as PT/YT tokens. Largest source of cUSD demand with $155M+ Pendle TVL. Enables users to speculate on yield or lock in fixed returns.
- MorphocoreLending protocol for efficient looping positions using stcUSD, PT-stcUSD, and PT-cUSD. Major vault lenders including MEV Capital, Gauntlet, Hyperithm, Clearstar lending to Cap assets.
- RedStonecoreOracle provider for cUSD pricing including WTGXX reserves. Ensures accurate valuation and seamless integration across DeFi maintaining data consistency throughout Cap ecosystem.
- ChainlinkcoreOracle provider for cUSD price feeds. Part of multi-oracle strategy alongside RedStone for data reliability.
- Flow TraderscorePublicly traded (Euronext: FLOW) global liquidity provider. First operator-restaker deployment via YieldNest on EigenLayer. Borrows from Cap for market-making and yield strategies.
- CertoracoreSecurity auditing firm. Audited Cap's AVS on EigenLayer. Part of multi-layered security approach.
- SherlockcoreSecurity protocol for smart contract audits. Part of Cap's security ecosystem.
- UniswapstrategicFacilitated CAP token auction using Continuous Clearing Auction format, clearing at $0.011 per token with $106M FDV. Transparent on-chain auction mechanics for fairer token distribution.
Scale indicators10 records
Recent moves6 records
Expansion highlights6 records
CAP Labs competitors and assessment
Company assessmentDirect peers
- Ethena Labs: Issuer of USDe, a synthetic dollar that earns yield from crypto market-neutral strategies and exchange perp funding. Directly competes with Cap's cUSD/stcUSD for the yield-bearing stablecoin market, though via delta-neutral basis trades rather than institutional credit.
- Maple Finance: Institutional onchain credit marketplace offering unsecured and collateralized loans to crypto-native firms with underwriters. Closest direct peer to Cap's covered credit model, though Maple uses pooled credit pools rather than per-loan financial guarantees.
- Morpho: Leading DeFi lending protocol with efficient peer-to-peer matching and institutional vaults. Cap integrates with Morpho for cUSD/stcUSD looping strategies, but Morpho's vault lenders (MEV Capital, Gauntlet) also compete for the same institutional credit capital.
- Ondo Finance: Issuer of USDY and OUSG, tokenized yield products backed by US Treasuries and bank deposits. Competes directly for the regulated, tokenized USD yield market and has similar TradFi partnerships (WisdomTree competitor BlackRock, Franklin Templeton).
- Sky (formerly MakerDAO): Issuer of DAI/USDS, the largest decentralized stablecoin with a credit facility (Spark) lending against RWAs. Competes with cUSD in the decentralized stablecoin category and operates similar institutional RWA lending infrastructure.
- Credix: Private credit marketplace on Solana connecting institutional borrowers with onchain lenders. Comparable business model to Cap for institutional onchain credit, though on a different chain and with different underwriting structure.
- TrueFi: Pioneer in unsecured institutional DeFi lending with credit-tranches and risk-graded pools. Closest historical analog to Cap's institutional credit underwriting model, though TrueFi has scaled back in recent years.
- Frax Finance: Issuer of frxUSD and sfrxUSD, a yield-bearing stablecoin suite with algorithmic and RWA-backed variants. Competes in the yield-bearing stablecoin category and uses similar Treasury bill and RWA strategies for underlying yield generation.
Broad incumbents
- Aave: Largest DeFi lending protocol with deep liquidity and broad institutional adoption. Competes with Cap in DeFi lending and is one of Cap's integration partners, but Aave's overcollateralized model targets a different borrower segment than Cap's unsecured institutional lending.
Others
- Pendle Finance: Yield tokenization protocol where Cap's cUSD and stcUSD trade as PT/YT tokens. Pendle is a critical integration partner (largest source of cUSD demand with $155M+ TVL) rather than a competitor, but Pendle enables competing yield strategies on other stablecoins.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks6 records
Key highlights7 records
Customer concentration
CAP Labs social profiles
Digital presenceCAP Labs financial estimates
Financial estimateRevenue estimate
Valuation estimate
CAP Labs leadership team
Management profileNumber of profiles
Profiles2 records
CAP Labs funding detail
Funding detailFunding overview
Funding rounds2 records
Investors14 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
CAP Labs M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about CAP Labs
What does CAP Labs do?
CAP Labs operates a three-sided covered credit platform on Ethereum consisting of cUSD (a digital dollar stablecoin redeemable 1:1 for collateral assets) and stcUSD (a yield-bearing stablecoin). The platform connects institutional borrowers with USD liquidity from depositors, while a separate delegator layer provides financial guarantees on each loan through automated smart contracts. Cap charges interest spreads on USD loans, guarantee premiums to underwriters, and platform utilization fees from its lending activity.
Is CAP Labs a public or private company?
CAP Labs is a private company. It is classified as venture growth investor backed and is currently operating.
When was CAP Labs founded?
CAP Labs was founded in 2024. It employs 1 to 10 people.
Where is CAP Labs based?
CAP Labs is headquartered in New York, United States, in the North America region.
How does CAP Labs make money?
Three revenue lines are on record. Interest Spread on USD Loans are the primary driver. The others are guarantee Premium Fees and platform Utilization Fees.
Who are CAP Labs's main competitors?
Direct peers on record are Ethena Labs, Maple Finance, Morpho, Ondo Finance, Sky (formerly MakerDAO), Credix, TrueFi and Frax Finance. Aave is listed as a broad incumbent. Pendle Finance is listed as an others.
Does CAP Labs have an API?
No public API is recorded for CAP Labs.
What industry is CAP Labs in?
CAP Labs's product category is DeFi Credit Protocol. Its primary akta.pro industry code is FSAGAMAG, Institutional DeFi & On-Chain Liquidity Infrastructure (Permissioned DeFi, Lending), with a secondary code of FSADADAB, Tokenized Bank Deposit & Commercial Bank Money Issuers. Its NAICS code is 5221 and its SIC code is 6199.