ParaFi Capital raises $125M for new crypto venture fund

• ParaFi Capital has successfully raised $125 million for a new venture fund dedicated to blockchain infrastructure.
• The firm focuses on stablecoins, tokenization, and institutional on-chain finance despite broader market volatility.
• Total assets under management for the firm have reached approximately $2 billion following recent capital raises.

Strategic Investment in On-Chain Finance

New York-based digital asset manager ParaFi Capital has finalized a $125 million funding round for its latest venture fund. Under the leadership of founder Ben Forman, the firm is concentrating its resources on companies that facilitate stablecoins, the tokenization of real-world assets, and the growth of institutional on-chain finance.

ParaFi is already a major stakeholder in several high-profile cryptocurrency entities. Its current portfolio includes:

• Anchorage: A digital asset platform for institutions.
• Bitwise: A leading crypto index fund manager.
• Polymarket: A decentralized prediction market platform.

Institutional Support and Growth

Founded in 2018, ParaFi has secured backing from some of the most prominent names in traditional and venture finance. Notable supporters include Bain Capital Ventures and Henry Kravis, the co-founder of KKR & Co. This institutional pedigree was further bolstered in 2024 when the firm raised $120 million from a group of investors that included Accolade Partners and Theta Capital Management.

Beyond the new venture fund, the firm has seen significant momentum since the start of 2025. ParaFi has raised an additional $325 million for its ongoing digital asset investment strategies, bringing its total assets under management to roughly $2 billion.

Navigating a Challenging Market

The successful fundraising comes at a time when the cryptocurrency market is facing significant headwinds. Bitcoin (BTC) has seen a decline of more than 40% from the all-time high it reached in October. This volatility has led some industry peers, such as Paradigm, to shift their focus toward emerging technologies like AI agents and robotics.

However, Ben Forman emphasized that sophisticated investors are able to look past short-term price movements. He noted that the continued capital flow demonstrates a deep-seated belief in the long-term adoption of blockchain-based financial infrastructure, regardless of current market fluctuations.