Galaxy and SharpLink Plan $125 Million on-Chain Yield Fund for Institutional Investors
Galaxy Digital and SharpLink Gaming announced May 11 a plan to launch an institutional on-chain yield fund with $125 million in initial commitments, according to a GlobeNewswire release. The partners describe the vehicle as the first of its kind for institutional investors.
The fund will allocate to blockchain-based financial markets in search of yields that traditional fixed-income products cannot currently match.
Structure and Investment Mandate
The fund’s mandate targets what Galaxy and SharpLink call “high-yielding opportunities in blockchain-based financial markets.” In practice, that means directing capital into on-chain yield products such as staking, on-chain lending, and liquidity provision across major protocols.
On-chain yield refers to returns generated by locking digital assets into blockchain-native financial systems rather than through traditional custodians or banks. Staking, for example, allows holders to earn rewards by helping secure a proof-of-stake network.
Lending protocols pay interest to depositors who supply capital to automated borrowing markets.
The $125 million in commitments has been secured before the fund launches. Both Galaxy and SharpLink have contributed capital, with additional institutional investors completing the initial round.
The fund structure has not been fully disclosed, but the involvement of Galaxy Digital suggests a Cayman Islands or Delaware domicile consistent with Galaxy’s prior fund vehicles.
Background
SharpLink has been building its cryptocurrency treasury strategy over the past several months. The company’s earlier Ethereum staking approach, which involved holding ETH and earning staking rewards as a yield-generating corporate asset, has been covered as part of the broader trend of public companies adopting on-chain financial products.
That prior context on SharpLink’s Ethereum staking strategy frames the new fund as a natural expansion of SharpLink’s on-chain positioning.
Galaxy Digital, led by founder Mike Novogratz, operates one of the largest institutional cryptocurrency asset management businesses in the United States. The firm manages hedge funds, venture vehicles, and direct lending books across digital assets.
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What Comes Next
The fund’s performance will serve as a live test of whether institutional-grade on-chain yield strategies can compete with traditional alternatives at meaningful scale.
Regulatory scrutiny of on-chain lending and yield products has grown since 2023, and any fund of this size operating in the space will attract SEC attention. Galaxy’s compliance infrastructure, built during years of institutional fund management, may provide the regulatory buffer smaller on-chain yield operators lack.
Investors will watch initial allocation disclosures for signals on where Galaxy and SharpLink see the best risk-adjusted returns in blockchain financial markets.
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