District, built by Centrifuge, is a real world asset (RWA) protocol that enables depositors to gain tokenized exposure to the U.S. private credit lending market - Senior Secured Business loans, an asset class historically favored by institutions for its strong risk-adjusted returns. By connecting stablecoin deposits to off-chain lending, District provides depositors access to this segment of the private credit market for the first time through its District vault, a smart contract pool designed to facilitate lending to Washington, D.C. area small and medium-sized businesses (SMBs) using blockchain technology, offering exposure to yield opportunities that were traditionally inaccessible.

When you deposit USDC stablecoins into the District vault, you instantly receive vault shares called DISTRICT, District's vault token. These funds are used off-chain to fund loans for Washington, D.C. area small and medium-sized businesses (SMBs). As borrowers repay those loans with interest, capital flows back into the vault and is automatically compounded, allowing depositors to passively earn real, on-chain yield paid in USDC, backed by off-chain repayments. The vault securely shares returns with depositors while keeping stablecoin deposits tied to real, overcollateralized assets.

The vault accepts USDC for deposits. Deposit into the District vault through Superform.xyz to utilize their cross-chain bridge which converts most cryptocurrencies to USDC automatically.

When you deposit in the District vault, a 15% performance fee is applied to the net interest income generated from loan repayments. This fee helps cover operational expenses, regular audits, and ongoing development to keep the platform secure and innovative. Additionally, Centrifuge, the underlying protocol, charges a small 0.50% fee on the vault’s total assets under management (AUM). After these fees, the remaining yield is fully distributed to DISTRICT token holders, ensuring you receive the maximum benefit from the vault’s on-chain cash flows. This transparent fee structure supports the platform’s sustainability while prioritizing your returns.

Yes. The District vault is built by Centrifuge, offering on-chain loan tokenization, yield tracking, real-time onchain data review, asset performance monitoring, security audits, and full financial transparency to depositors. Centrifuge vaults have been expert-audited by Spearbit, SRLabs, Code4rena, Least Authority, Consensys Diligence, and Trail of Bits. The District vault is constantly audited and protected by experts with ongoing threat monitoring and bug bounties.

Depositors can withdraw their funds from the District vault by submitting a redemption request. Withdrawals depend on available cash from SMB loan repayments. To make withdrawals easier, District keeps a portion of the vault in liquid U.S. short-term treasuries (Centrifuge’s Janus Henderson Anemoy Treasury Fund) as a reserve pool, allowing depositors flexible access to exit their positions without waiting for scheduled redemption events.

As with all forms of private credit exposure, there are risks associated with investing through the District vault. Borrower defaults and broader economic conditions can impact loan performance. Liquidity is also a consideration, as withdrawals are tied to loan repayments. District mitigates these risks by partnering with its lending arm, Washington, D.C. Consortium, a premier lending syndicate, which has deployed over $750 million in secure B2B loans since 1995 with a default rate below 1.5%, which is responsible for underwriting and originating loans. Capital is deployed into a diverse set of loans for Washington, D.C. area small and medium-sized businesses (SMBs), providing meaningful diversification.