Galaxy Digital Secures $175 Million for Crypto Venture Fund

Galaxy Digital, a prominent digital assets and blockchain technology company, has successfully secured $175 million for its inaugural venture fund. This fund is specifically designed to support early-stage cryptocurrency startups, with a particular focus on stablecoins, decentralized finance (DeFi), and various blockchain use cases. The fund's portfolio will include promising blockchain infrastructure firms, highlighting Galaxy Digital's commitment to fostering innovation in the crypto space.

The venture fund, which has exceeded its initial target, is backed by a global base of limited partners. This support underscores the confidence that investors have in Galaxy Digital's ability to identify and nurture high-potential startups in the rapidly evolving crypto landscape. The fund aims to bridge the gap between traditional finance and cryptocurrency, with a special emphasis on stablecoins, which are digital assets pegged to the value of another asset, such as the US dollar, to provide stability in the volatile crypto market.

Galaxy Digital's decision to launch this venture fund marks a significant expansion of its venture business. Previously, the company had been investing in digital assets startups using capital from its balance sheet. This new fund represents a strategic shift, allowing Galaxy Digital to leverage external capital to support a broader range of early-stage startups. The fund's focus on the intersection of traditional finance and crypto aligns with the growing trend of institutional interest in the crypto space, as more traditional financial players seek to integrate blockchain technology into their operations.

The successful closure of this fund is a testament to Galaxy Digital's expertise and leadership in the crypto industry. The company's ability to attract significant investment from a global base of limited partners demonstrates its credibility and track record in the sector. As the crypto market continues to evolve, Galaxy Digital's venture fund is poised to play a crucial role in shaping the future of the industry by supporting innovative startups that are building the next generation of blockchain infrastructure and financial services.

Mike Giampapa, general partner at Galaxy, emphasized that the fresh capital, which surpasses Galaxy’s $150 million target, will be used to invest in early-stage crypto startups, particularly those focused on stablecoin infrastructure, DeFi applications, and practical blockchain use cases. Galaxy holds both general partner and limited partner roles in the fund. Other participants include institutional investors, family offices, and fund-of-funds tied to its asset management business.

The fund reached an initial close of $113 million in July 2024 and has already deployed $50 million into companies such as Monad and Ethena. Founded in 2018, Galaxy’s mission is to bridge traditional finance and the emerging crypto economy. Over the years, the company has expanded into asset management, proprietary trading, crypto mining, and ETFs.

In early 2024, Galaxy partnered with Invesco to launch a spot Bitcoin ETF, and it is now exploring a spot Solana ETF. Despite past setbacks, including a huge loss from its exposure to the failed Luna stablecoin project and a $295 million net loss in Q1 2025 due to falling crypto prices and mining shutdowns, Galaxy remains one of the most influential US crypto firms.