Galaxy Digital has sealed the final close of its first venture fund with outside capital, raising $175 million. The fund exceeded its initial goal of $150 million.
This marks a shift from using only its own balance sheet to opening up to external investors. Galaxy plans to channel these new resources into early-stage firms at the intersection of traditional finance and crypto.
Fund Raises $175 Million
Fortune reported that the venture vehicle topped its target, drawing in institutional investors such as family offices and fund-of-funds. Galaxy anchors the fund with its own capital while also serving as a limited and general partner.
The firm reported an initial close of $113 million last July and has now secured the remaining commitments to hit $175 million.
Shift to Outside Capital
Until now, Galaxy had relied solely on internal funds for its venture bets. General partner Mike Giampapa told Fortune that the firm chose to tap outside capital to spread risk and back more projects.
He said the move allows Galaxy to back startups focused on real use cases rather than purely speculative efforts.
Focus on Tangible Blockchain Use Cases
Giampapa noted that the industry has moved from speculative blockchain experiments toward solutions with clear benefits. He highlighted areas such as stablecoins and decentralised finance applications.
By widening its venture arm, Galaxy seeks to support companies that aim to deliver practical tools for both businesses and consumers.
Venture Strategy Evolution
Galaxy’s venture arm has backed notable names like Fireblocks, the crypto custodian. The collapse of FTX in 2022 prompted the firm to rethink its approach.
Also Read: Galaxy Digital CEO Predicts Wave Of Crypto Listings On NYSE And Nasdaq By Mid-2025
Giampapa said that as the market recovered, it became clear that a dedicated, externally funded vehicle was needed to take its venture franchise further.
Early Deployments
Since the fund’s launch, Galaxy has invested roughly $50 million. Some early bets include Monad, which builds trading-focused blockchain infrastructure, and Ethena, the synthetic dollar protocol issuing yield-bearing stablecoins backed by crypto assets.
Giampapa, who previously worked at IVP and Bessemer, leads the fund alongside Will Nuelle.
In April 2025, the US SEC declared Galaxy’s registration statement effective, clearing the way for its Nasdaq debut. As a public company, Galaxy’s new fund will allow retail investors indirect access to a crypto venture portfolio, an offer rarely seen in this sector.
The firm also plans to move its headquarters from the Cayman Islands to Delaware after meeting shareholder requirements.
Legal Headwinds
Galaxy faces a $200 million settlement demanded by the New York Attorney General over its role in the 2022 collapse of TerraUSD and Luna. The settlement follows allegations of market misconduct connected to the failed stablecoin and underlines the regulatory risk that still looms over crypto firms.
By closing its first outside-capital venture fund, Galaxy Digital takes a major step in scaling its support for the next wave of blockchain startups. With fresh resources, a clear focus on practical use cases, and a publicly traded structure, the firm hopes to drive innovation at the crossroads of finance and crypto.