Cap, an onchain credit marketplace backed by financial guarantees, is expanding into film and media financing, marking a new step in bringing traditional credit markets onto blockchain infrastructure. The expansion includes financing for Wake, an upcoming comedy-drama directed by Devon Michaels and starring Cole Sprouse, Riki Lindhome, Penelope Ann Miller, and Chris Parnell.

The financing is structured as an advance against anticipated film production tax credits, allowing the production to access capital ahead of receiving those proceeds. While tax credit financing is a well-established practice in the entertainment industry, the transaction demonstrates how Cap’s underwriting model can extend onchain lending to borrowers and industries that have historically operated outside crypto markets.

Rather than requiring film productions to tokenize their underlying assets, Cap enables specialized underwriters to evaluate offchain credit risk and provide onchain collateral to guarantee loans. The approach is designed to make new categories of real-world credit accessible through blockchain infrastructure without requiring borrowers to restructure the assets traditionally used to secure financing.

Since the emergence of decentralized finance (DeFi), crypto lending has largely revolved around a relatively narrow borrower base, primarily institutions and large holders borrowing against Bitcoin, Ethereum and other liquid digital assets. Despite years of innovation in lending infrastructure, the underlying borrower base has remained largely concentrated within the digital asset ecosystem. For onchain lending to compete with traditional credit markets, it must be capable of serving businesses that do not hold crypto assets or operate on blockchain infrastructure.

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