TON Foundation secures $400 million investment led by Kingsway Capital to expand blockchain ecosystem.

The TON Foundation has finalized a $400 million investment led by Kingsway Capital Partners, with participation from Sequoia Capital and Ribbit Capital, marking one of the largest capital inflows in the cryptocurrency sector this year [2]. The funding will establish a treasury company to hold TON Coin, aiming to expand the blockchain project’s ecosystem and infrastructure. The investment, disclosed in March 2025, follows TON’s recent launch of a U.S.-based crypto wallet that integrated 87 million Telegram users into its platform [3]. This move underscores growing institutional interest in TON’s utility-driven model, particularly as it seeks to enhance cross-border payment capabilities and integrate with existing Web3 infrastructure.

The fundraising effort builds on earlier momentum, including a $12.6 million presale for a decentralized finance (DeFi) project linked to TON [4]. Analysts suggest the influx of capital could accelerate TON’s adoption, given the project’s alignment with broader industry trends where large-scale funding rounds are increasingly viewed as catalysts for mainstream blockchain adoption. The TON blockchain, originally developed by the Telegram Open Network team, has repositioned itself as a decentralized platform for developers and enterprises after facing regulatory scrutiny in the past.

Draper Associates, a venture capital firm with a history of backing high-growth startups such as Robinhood and Twitch, joined the round as a lead investor [1]. The firm’s involvement signals strong confidence in TON’s potential to scale its decentralized network, aligning with its track record of supporting transformative tech ventures. The participation of top-tier VCs further positions TON among a select group of blockchain projects that have attracted institutional backing, a strategy historically associated with driving innovation and market leadership in the sector.

The investment follows a period of heightened activity in the altcoin market, with TON Coin experiencing a modest price increase following the announcement. While an official statement from the TON Foundation has not yet been released, market observers note that institutional demand for crypto treasury firms—entities holding assets like Bitcoin, Ethereum, and Solana—is reshaping market dynamics. These firms aim to attract liquidity by converting their holdings into crypto-focused alternative investment products, a strategy that has gained traction amid evolving regulatory frameworks and investor preferences.

Stakeholders will closely monitor whether the funding translates into tangible use cases, user growth, and infrastructure development. The success of similar initiatives by projects like MicroStrategy highlights the potential for treasury companies to drive long-term value, though the sector’s performance remains subject to macroeconomic and regulatory uncertainties. For now, TON’s ability to leverage its Telegram user base and institutional partnerships will be critical in determining its trajectory in a competitive crypto landscape.

Sources:

[1] [“Telegram-based blockchain TON raises $400 million from prominent crypto VCs”](https://tracxn.com/d/venture-capital/draper-associates/__7h96NQAigS5p__mF-auZlWr9JsyTO88rGQ3pYGgkNFI)

[2] [“TON Coin Secures $400 Million Investment”](https://en.coin-turk.com/ton-coin-secures-400-million-investment/)

[3] [“Important information from last night and this morning (July 24)”](https://www.panewslab.com/en/articles/s6bo5dzv)

[4] [“The Toncoin (TON) whales are buying this DeFi underdog...”](https://www.msn.com/en-us/money/other/the-toncoin-ton-whales-are-buying-this-defi-underdog-before-it-hits-0035-only-15-supply-left/ar-AA1IWQD1)