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ParaFi secures $125 million for new fund despite decline in cryptocurrency market, according to Bloomberg.
The firm currently oversees approximately $2 billion, having secured an extra $325 million for its existing crypto investment strategies since last year.
Parafi raised $125 million (Gerd Altmann/Pixabay)
Key details:
- ParaFi secured $125 million for a new venture fund concentrating on stablecoins, tokenization, and onchain financial solutions for institutions.
- The firm currently oversees around $2 billion, having raised $325 million for current crypto investment approaches since 2025, and has invested in companies like Polymarket, Bitwise, and Anchorage.
- Although the fundraising occurs during a difficult time for the industry, with bitcoin down 26% from this year’s peak, investors seem to be increasingly focused on the long-term prospects of blockchain-powered financial systems.
ParaFi, a digital asset management firm based in New York and supported by KKR co-founder Henry Kravis, raised $125 million for a new venture fund, as reported by Bloomberg.
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This funding is in addition to the $325 million ParaFi indicated it has gathered for ongoing crypto investment strategies since the beginning of 2025. The firm currently manages roughly $2 billion.
Ben Forman, the founder who departed KKR in 2018, stated that the new fund will target startups engaged in stablecoins, tokenization, and onchain financial products for major institutions.
Since its inception, ParaFi has supported companies such as the prediction market Polymarket, crypto asset manager Bitwise, decentralized finance entity Kyber Network, and custodian Anchorage.
This fundraising effort is particularly notable as it takes place during a downturn in the crypto industry. Bitcoin has decreased by over 26% from its 2026 peak reached in January, and has only recently regained the $70,000 threshold. The broader market, as indicated by the CoinDesk 20 (CD20) index, has lost one-third of its value in the same timeframe.
Investors are beginning to distinguish between short-term fluctuations in token prices and the longer-term value proposition for blockchain-based financial systems, Forman noted, according to Bloomberg.
