TL;DR
- Galaxy Digital has closed a $175 million venture fund, exceeding its initial $150 million target.
- This marks the firm’s first fund with external capital, signaling growing institutional interest in blockchain use cases beyond speculation.
- The fund will support startups focused on stablecoins, DeFi, and blockchain applications designed to solve real-world problems in finance, payments, and infrastructure.
Galaxy Digital has finalized its first externally-backed venture fund, securing $175 million to invest in early-stage crypto companies. The initiative reflects a clear pivot towards functional blockchain innovations such as payment systems, decentralized finance infrastructure, and digital asset tokenization.
Led by general partner Mike Giampapa, the fund represents a major shift for Galaxy, which previously used its own capital for venture investments. This time, it welcomed contributions from institutional investors, family offices, and fund-of-funds affiliated with its asset management division. Galaxy itself remains deeply involved, holding both general and limited partner positions in the fund.
Focus Expands To Stablecoins And Payment Infrastructure
The fund will prioritize ventures working on scalable blockchain layers, stablecoin ecosystems, capital markets tools, and tokenization frameworks. According to Giampapa, there’s rising global interest from both institutional and retail sectors for applications like programmable money and onchain financial services.
Despite volatile markets and tighter venture funding conditions, Galaxy surpassed its fundraising goal. The fund reached an initial close of $113 million in July 2024 and has since deployed $50 million into high-potential companies like Monad, a performance-first blockchain, and Ethena, an issuer of yield-bearing stablecoins.
CEO Mike Novogratz emphasized that this funding round shows continued belief in blockchain’s ability to transform traditional finance. Galaxy’s strong presence in infrastructure, market-making, and digital asset services gives it an edge in identifying emerging opportunities.
Nasdaq Listing And Long-Term Crypto Commitment
Founded in 2018, Galaxy has evolved into a diversified digital asset platform. It currently manages over $7 billion in assets and operates in ETFs, crypto mining, and proprietary trading. The firm went public on Nasdaq in May 2025 under the ticker GLXY, debuting with a 15% stock increase.
Despite past setbacks—including exposure to the collapsed Luna stablecoin and a $295 million Q1 2025 loss due to mining issues—Galaxy remains focused on growth. The company is also exploring tokenizing its own equity and integrating it into decentralized finance protocols, a move that could redefine how public shares interact with blockchain.
Galaxy’s partnership with Invesco on a spot Bitcoin ETF (in 2024), and its exploration of a Solana ETF, further signals its long-term conviction in crypto adoption.
