Galaxy Digital and Sharplink Launch $125 Million Institutional DeFi Yield Fund

The two companies entered into a non-binding agreement to launch a $125 million initiative that seeks to put Sharplink’s ETH treasury to work. The company stated that the funds will be deployed across onchain liquidity strategies and in support of early-stage protocols.

• Key Takeaways:
• • Galaxy Digital and Sharplink formed a $125M fund, moving DeFi to institutional treasuries.
• • Holding 870K ETH, Sharplink proves large firms can safely access onchain market yields.
• • Next, Galaxy will manage the $125M pool to generate risk-managed ETH returns for investors.

Sharplink and Galaxy Partner To Deploy $125M DeFi Ecosystem Liquidity Fund

Decentralized finance has shifted from a retail-based, low liquidity niche sector to an industry that can be leveraged by institutional investors to diversify their treasury management.

Galaxy Digital and Sharplink, one of the largest Ethereum treasury platforms, announced a non-binding agreement to launch an institutional onchain yield fund to deploy capital across DeFi and onchain yield-generating protocols.

Galaxy, that will manage the fund, will contribute $25 million, while Sharplink will allocate $100 million in commitments towards the initiative. The fund is part of Sharplink’s actions to put its treasury to work, as it recently stressed that it is always looking for the best ways to earn yield on its permanent capital.

While details are still scant, Sharplink specified that these funds will be allocated with a long-term alignment in mind and leveraging “onchain opportunities generating risk-managed, ETH-denominated yield,” hinting at a broader commitment to the Ethereum ecosystem.

Matthew Sheffield, Sharplink’s Chief Investment Officer, stressed that the company aims “to preserve our core staked Ethereum exposure while generating excess returns that accrue back to our shareholders.”

Mike Novogratz, founder and CEO of Galaxy, highlighted the relevance of Sharplink’s onchain diversification. “Institutional capital is moving onchain, and the infrastructure to support it has matured to a point where allocators can access yield, liquidity, and risk management with the same rigor they expect in traditional market,” he said.

Sharplink registered a positive Q1 2026, reaching over 870K ETH in its total holdings, and is the second-largest Ethereum digital asset treasury (DAT) behind Bitmine Inmersion, which holds over 5 million ETH. The company also registered 16,436 ETH obtained in staking rewards, while disclosing $12.1 million in total revenue and unrealized losses of over $685 million due to market conditions.