June 26, 2025

Galaxy Digital, the crypto financial services firm founded by billionaire investor Mike Novogratz, has closed a $175 million venture fund targeting decentralized finance (DeFi) and stablecoin infrastructure, according to a report by Fortune.

The newly launched fund surpasses its original $150 million target and reflects growing institutional confidence in crypto sectors that bridge the gap between traditional finance and blockchain technology.

Focus: Stablecoins and DeFi Infrastructure

Speaking to Fortune, Mike Giampapa, General Partner at Galaxy Digital, confirmed that the fund will back early-stage startups building at the intersection of Web3 and traditional finance, with a particular emphasis on stablecoin protocols, on-chain capital markets, and DeFi primitives.

“Stablecoins and DeFi are still among the most disruptive use cases in the crypto ecosystem,” Giampapa said. “We believe this is where the next generation of financial infrastructure will be built.”

Galaxy opted to raise capital externally before contributing as a limited partner in the fund. This strategy allows outside investors to access early-stage crypto exposure, while Galaxy shareholders—through the firm’s Nasdaq-listed stock ($GLXY)—gain indirect participation in fund performance.

Early Investments Already Underway

Giampapa noted that approximately $50 million has already been deployed. Notable investments include:

Monad — a high-performance layer-1 blockchain focused on parallel execution.

Ethena — a stablecoin protocol offering yield-bearing synthetic dollars, which has quickly gained traction in DeFi circles.

Galaxy Digital’s Expanding Crypto Footprint

Galaxy’s venture arm is part of a broader multi-pronged crypto strategy. As of May 2025, the firm manages more than $7 billion in assets, much of which is allocated across venture capital, asset management, and crypto infrastructure projects.

In parallel, Galaxy is pushing deeper into the ETF market. Alongside asset manager Invesco, the company recently filed an S-1 registration form with the U.S. Securities and Exchange Commission (SEC) for the Invesco Galaxy Solana Trust, marking a potential expansion of Solana-based financial products.

A Changing U.S. Regulatory Landscape

Galaxy’s latest moves come amid a more favorable regulatory climate in the United States. With enforcement actions easing and lawmakers advancing crypto-specific legislation, venture firms and institutions are returning to the sector with renewed interest.

“The regulatory environment is finally catching up with innovation,” said Giampapa. “That creates enormous opportunity for funds like ours to help shape the future of programmable finance.”

Outlook

With fresh capital, Galaxy Digital is positioning itself at the forefront of crypto’s next venture cycle. As stablecoins, tokenized assets, and on-chain financial infrastructure continue to gain traction, the firm’s strategic investments could play a pivotal role in defining how global finance evolves on-chain.