Galaxy Digital Raises $175M to Back DeFi and Stablecoin Startups Amid Growing Crypto-Finance Convergence
Galaxy Digital, the investment firm led by Mike Novogratz, has secured $175 million for a new venture fund aimed at backing startups in the decentralized finance (DeFi) and stablecoin space. The announcement, first reported by Fortune on June 26, marks a significant expansion of Galaxy’s presence in the venture capital side of the crypto industry.
Initially targeting $150 million, the fund surpassed expectations—reflecting investor confidence in the long-term promise of blockchain applications that go beyond speculation. The firm has already deployed $50 million from the fund into early bets, including the Monad blockchain and Ethena, a protocol offering a yield-bearing dollar-pegged stablecoin.
Mike Giampapa, a general partner at Galaxy Digital, emphasized that the firm is betting on what he called a “fundamental shift” in blockchain use cases.
“You’re seeing this fundamental shift from more speculative use cases of blockchains to something that’s much more… tangible,” Giampapa told Fortune.
The venture fund focuses on startups that bridge traditional finance with crypto innovation—an area gaining momentum as U.S. regulatory clarity continues to improve. With financial institutions and venture firms showing renewed interest, Galaxy is positioning itself as a key player in shaping this intersection.
Galaxy Digital isn’t new to crypto venture capital. The firm manages about $7 billion in assets, much of which is allocated to early-stage crypto companies. Beyond venture capital, Galaxy operates in sectors like crypto mining and asset management. The firm is also publicly traded on the Nasdaq, offering traditional investors indirect exposure to emerging crypto infrastructure.
The timing of this fund launch coincides with broader initiatives by Galaxy to expand its footprint. On June 25, Galaxy and asset manager Invesco filed an S-1 form with the U.S. Securities and Exchange Commission to launch the Invesco Galaxy Solana Trust—part of their push to offer institutional-grade crypto investment products. A Solana ETF is also reportedly under consideration.
As regulatory environments stabilize and institutional capital flows into crypto, Galaxy’s latest move underlines a strategic bet: that the future of finance lies at the convergence of decentralized technologies and traditional systems.