Function Secures $10 Million to Bring Yield to Bitcoin

Function, a financial technology company, has successfully secured $10 million in seed funding to develop a platform that brings yield to Bitcoin. The funding round was led by Galaxy Digital, with participation from Antalpha and Mantle. This investment is aimed at transforming Bitcoin into a productive institutional asset, leveraging Function's innovative technology to generate returns for investors.

Function's flagship product, FBTC, a fully reserved and composable Bitcoin representation, has already amassed $1.5 billion in total value locked (TVL). This substantial TVL underscores the potential of Function's platform to revolutionize the way Bitcoin is utilized within the institutional investment landscape. By providing yield on Bitcoin holdings, Function is addressing a critical need in the market for more productive and efficient use of digital assets.

The backing from Galaxy Digital, Antalpha, and Mantle further validates Function's vision and technology. These investors are well-known for their expertise and influence in the digital asset space, and their support is a testament to the potential of Function's platform. With this funding, Function is well-positioned to expand its offerings and attract more institutional investors, further solidifying its role as a leader in the Bitcoin yield space.

Function's success in raising $10 million and achieving a $1.5 billion TVL in FBTC highlights the growing demand for yield-generating products in the Bitcoin market. As more institutional investors seek to maximize the returns on their digital asset holdings, platforms like Function are poised to play a crucial role in transforming Bitcoin into a more productive and valuable asset. The company's innovative approach and strong investor backing position it well to capitalize on this growing trend and drive further innovation in the digital asset space.

With Mike Novogratz's Galaxy joining as both an investor and core contributor, Function gains a heavyweight partner in scaling FBTC’s institutional reach. Galaxy’s involvement includes liquidity provisioning, governance and risk framework design, and strategic oversight. This partnership is expected to significantly enhance Function's capabilities and market presence, further accelerating the adoption of yield-generating Bitcoin products among institutional investors.

Thomas Chen, CEO of Function, emphasized the evolving landscape of Bitcoin as a treasury asset. "By 2026, treating Bitcoin as a passive treasury asset may no longer be enough. The new standard will be actively earning yield," Chen stated. He further added, "We’re evolving from wrapped assets to functional infrastructure that's programmable and institutional-grade to transform Bitcoin into a productive asset class. Sophisticated allocators will demand their Bitcoin work as hard as their cash. Those slow to adapt will underperform; forward-looking firms will win the next era of Bitcoin yield."

Function's innovative approach to bringing yield to Bitcoin is set to redefine the way institutional investors view and utilize this digital asset. By providing a platform that allows for productive deployment of Bitcoin while maintaining full custodial control, Function is addressing a key challenge in the market. This, combined with the strong backing from leading investors, positions Function at the forefront of the growing effort to unlock institutional yield opportunities from Bitcoin.