Galaxy Digital, the crypto investment firm led by billionaire Mike Novogratz, has secured $175 million for its new venture capital fund targeting blockchain startups.
The fund, which closed above its $150 million target, is part of Galaxy’s growing commitment to backing early-stage companies in the decentralised finance (DeFi) and stablecoin sectors.
The capital raise signals a shift in how institutional investors are approaching blockchain ventures.
Instead of betting on speculative tokens, Galaxy is now focusing on startups at the intersection of traditional finance and blockchain technology.
The company has already invested $50 million of the fund in select projects, reinforcing its strategy of bridging conventional finance and the evolving crypto economy.
Stablecoins and DeFi take centre stage
Galaxy’s new fund will primarily invest in projects developing stablecoins and DeFi infrastructure.
These sectors have seen increased institutional interest as investors search for more predictable use cases within the crypto space.
Mike Giampapa, general partner at Galaxy Digital, explained that the firm chose to raise external capital for the fund and then participated as a limited partner.
This approach enables Galaxy to leverage institutional backing while retaining exposure through its own listed stock on Nasdaq.
The company believes stablecoins and DeFi protocols offer more “tangible” applications compared to earlier crypto ventures driven by speculation.
Among the first deployments of the fund are investments in Monad, a high-performance blockchain platform, and Ethena, a protocol for issuing yield-generating dollar-pegged stablecoins.
These startups are building financial primitives that could support mainstream adoption of blockchain services by traditional institutions.
Venture activity grows alongside Galaxy’s $7B AUM
Galaxy Digital, which operates across trading, asset management, and mining, reported $7 billion in assets under management (AUM) as of May.
A significant portion of this AUM is already directed towards crypto-native startups, and the latest fund further strengthens its position in the venture ecosystem.
Beyond investing, Galaxy has been expanding its product range.
It recently filed for a Solana exchange-traded fund (ETF) through a joint submission with Invesco.
The partners submitted a registration statement (S-1 form) with the Securities and Exchange Commission on June 25, marking another attempt to bring blockchain exposure into mainstream financial markets.
The firm’s growing exposure to layer-1 blockchains, stable assets, and financial infrastructure aligns with broader market trends.
As US regulations become clearer, asset managers and institutional investors are showing more confidence in allocating capital to crypto ventures.
Galaxy’s venture fund is a direct response to this shifting landscape.
Traditional finance and crypto converge
The fund’s objective reflects a broader shift in the crypto industry—from speculative narratives to utility-based applications.
This convergence of traditional finance and decentralised networks is enabling projects to build tools that address real-world financial challenges.
Galaxy’s approach targets ventures that can offer stable returns, regulatory compliance, and scalable use cases.
The firm’s public market listing also allows investors to gain indirect exposure to the fund’s underlying startups.
Galaxy’s shares trade on Nasdaq, providing a channel for retail and institutional investors alike to benefit from the growth of crypto startups without investing directly in high-risk tokens.
The renewed push towards DeFi and stablecoin solutions suggests that Galaxy is betting on the long-term viability of blockchain-based financial systems.
With more than $50 million already deployed from the new fund, the firm is actively shaping the next wave of crypto infrastructure.
Galaxy doubles down amid improving US policy climate
Galaxy’s decision to raise and deploy capital at this point in the market cycle follows improving regulatory clarity in the US.
The firm is positioning itself to take advantage of new legislation and institutional demand for crypto assets, particularly in light of new frameworks supporting stablecoin issuance and crypto investment vehicles.
The firm’s dual role as a venture investor and publicly listed entity may provide it with unique leverage.
While the crypto market remains volatile, Galaxy Digital is moving decisively to capture value from early-stage blockchain projects offering long-term potential.
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