Galaxy Raises $175M to Invest in DeFi and Payments Tech

• Galaxy Digital closed its first external venture fund at $175M, exceeding the $150M target.
• The fund has deployed $50M into startups like Monad and Ethena’s yield-bearing stablecoin.
• The fund exceeded its $150M target, attracting institutional and family office investors.

Galaxy Digital, the crypto financial services firm led by former Goldman Sachs partner Mike Novogratz, has completed the final close of its $175 million venture fund. The introduction of this new vehicle is a pivot to Galaxy, which previously funded digital asset startups entirely out of its balance sheet. The company surpassed its initial $150 million fundraising target, reflecting robust demand from institutional backers.

The venture fund is Galaxy’s first to accept outside capital. Galaxy serves as both the general partner and a limited partner, anchoring the fund with its capital. According to general partner Mike Giampapa, Galaxy decided to scale up its venture capital operations in response to increased institutional interest and the rapid evolution of the crypto sector. Galaxy announced its initial close at $113 million in July 2024 and has already deployed around $50 million to promising startups.

Galaxy Digital Fund Focuses on Stablecoins and Payments

The new fund will allow Galaxy Digital to invest in high-growth opportunities at the intersection of traditional finance and blockchain. The fund will also focus on startups in stablecoins, tokenization, payments, and software that supports these technologies. Giampapa has observed that the trend is moving away from blockchain’s speculative use cases to some applications that offer practical value, especially in payments and capital markets.

Notable investments from the new fund include Monad, a blockchain project focused on trading performance, and Ethena, which issues a yield-bearing stablecoin backed by crypto assets. Galaxy’s investment team, led by Giampapa and Will Nuelle, intends to continue focusing on early-stage companies that offer real-world financial applications. Many of the fund’s limited partners are institutional investors, such as family offices and funds of funds, which also work with Galaxy’s asset management division.

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Galaxy Pushes Ahead Despite Market Downturn

Galaxy Digital decided to increase external financing to fund the venture following the FTX 2022 collapse, which resulted in a fall in the industry. The company considered this a moment to boost its venture franchise, with quieter markets experiencing a “stablecoin revolution” and emerging applications of blockchain technology.

At the beginning of May 2025, Galaxy announced $7 billion in assets under management. Nevertheless, it also reported a net loss of $295 million during the first quarter due to declining crypto prices and winding down some of its mining efforts. Nevertheless, Galaxy is still growing in influence, with an announced Bitcoin ETF offering with Invesco and exploring a Solana ETF.

After listing on Nasdaq in May, Galaxy’s new venture fund gives retail investors rare access to a diversified portfolio of crypto startups through a publicly traded company. As the firm broadens its investment approach, it seeks to back founders building products that connect traditional financial markets and the growing crypto ecosystem.

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