Galaxy Digital raises $175m for stablecoin and DeFi venture fund

Mike Novogratz’s Galaxy Digital has launched a $175 million fund to invest in new crypto startups.

Galaxy Digital is expanding its crypto startup venture capital business. According to a June 26 report by Fortune, the company has raised $175 million for its latest venture fund. The fund, which will focus on DeFi and stablecoins, exceeded its original funding target of $150 million.

Mike Giampapa, general partner at Galaxy Digital, explained that the firm plans to invest across more companies operating at the intersection of traditional finance and crypto. The primary focus will be on stablecoins and DeFi, which the firm says hold particular promise.

The firm chose to first raise outside capital and then participate as a limited partner in the fund. As Galaxy Digital is publicly traded on the Nasdaq, it allows investors to gain exposure to crypto startups through its stock.

Giampapa noted that the firm has already deployed $50 million from the fund, including investments in the Monad blockchain and the yield-bearing dollar stablecoin protocol Ethena.

Galaxy Digital expands its crypto operations

Galaxy Digital is involved in multiple segments of the crypto industry, including venture capital, crypto mining, and more. The firm reported $7 billion assets under management in May, most of which are allocated to various crypto startups.

Recently, Galaxy Digital has also explored a Solana ETF and has taken steps to launch the Invesco Galaxy Solana Trust. On June 25, the firm, together with Invesco, submitted an S-1 form to the Securities and Exchange Commission.

Favorable crypto regulations in the U.S. are making venture funds and financial institutions more open to exploring the intersection of crypto and traditional finance. Galaxy Digital aims to be at the forefront of this innovation wave.