Galaxy Digital Launches $175M Venture Fund for Crypto Startups
Galaxy Digital has successfully closed its first externally backed venture fund, raising $175 million. This exceeds the initial $150 million target. The fund will focus on early-stage crypto startups, particularly those developing stablecoins and DeFi applications. This move highlights the industry’s shift toward practical blockchain solutions.
Strategic Expansion Following FTX Collapse
According to Mike Giampapa, General Partner at Galaxy Digital, the firm saw an opportunity to expand its venture operations after the FTX collapse. He emphasized the growing importance of stablecoins in the current market landscape.
Investment Strategy and Key Backers
Galaxy Digital serves as the anchor investor, with additional support from undisclosed institutional partners. The fund has already committed $50 million to promising projects like Monad, a high-performance blockchain, and Ethena, a yield-bearing stablecoin issuer.
Galaxy Digital’s Market Position
Founded in 2018 by Mike Novogratz, Galaxy Digital has grown into a major player with $7 billion in assets under management. Its diversified portfolio includes Bitcoin ETFs and mining operations, despite recent financial challenges.
Implications for the Crypto Market
The launch of this venture fund reflects strong confidence in the crypto market‘s future. It is expected to drive innovation and broader adoption of blockchain technology.
