Consensys-backed Ethereum treasury firm Sharplink has teamed up with Mike Novogratz's crypto management giant Galaxy Digital to launch a private investment vehicle for decentralized finance.
In a Monday press release, Galaxy said that the so-called Galaxy Sharplink Onchain Yield Fund will deploy capital across DeFi liquidity protocols and "other on-chain yield-generating strategies."
The fund, which will be managed by Galaxy, is planned to launch in the coming weeks and will receive "commitments totaling $125 million, consisting of $100 million from Sharplink's staked Ethereum treasury and $25 million from Galaxy," the press release reads.
It's not clear if the fund is designed to back only Ethereum-based DeFi protocols, given Sharplink's focus on ETH. The press release only notes that "protocol selection, exposure sizing, and ongoing monitoring are governed by Galaxy's institutional research and risk management framework."
In a follow-up post on X, Sharplink noted that its priorities "have not changed," adding that it plans to "increase ETH per share" and "maximize ETH productivity."
The fund will also pursue a strategy designed to "capture high-yielding opportunities in blockchain-based financial markets by allocating to promising applications."