ParaFi Capital raised $125 million for a new venture capital fund focused on startups developing stablecoins, tokenization and onchain financial products for large institutions, according to Bloomberg.
The New York-based firm, backed by Henry Kravis, co-founder of KKR, now manages approximately $2 billion after also adding $325 million for existing crypto investment strategies since early 2025.
The fund was conceived and announced at an adverse moment for the market: Bitcoin has fallen more than 26% from the peak recorded in January 2026 and only recently recovered the $70,000 level. The CoinDesk 20 index, which tracks the overall market performance, lost a third of its value in the same period.
Ben Forman, founder of ParaFi and former KKR executive, noted that investors are beginning to separate short-term volatility in token prices from the long-term structural potential of blockchain-based financial infrastructure. Among the companies ParaFi has backed since its founding are Polymarket, Bitwise, Kyber Network and Anchorage.
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