SharpLink, Galaxy launch $125M on-chain yield fund
RWA Signal Insight
Active StrategiesSharplink, the second-largest Ethereum DAT, has partnered with Galaxy Digital to launch a $125 million on-chain yield fund. The initiative involves Sharplink committing $100 million of its existing Ethereum holdings, supplemented by $25 million in capital from Galaxy Digital. This fund aims to move beyond passive asset holding by actively deploying capital into various decentralized finance activities, including lending, liquidity provision, and restaking. Galaxy Digital will serve as the fund manager, responsible for evaluating opportunities, conducting due diligence, and mitigating risks such as smart contract failures and market volatility. This strategic shift allows Sharplink to potentially enhance the economic value of its $1.66 billion Ethereum treasury through active blockchain-based tactics. The move signifies a broader institutional trend of transitioning from passive crypto-asset ownership to active participation in on-chain financial markets. By diversifying yield generation strategies, Sharplink seeks to decouple its treasury performance from simple price appreciation of Ethereum.
Key points
- Sharplink and Galaxy Digital launched a $125 million on-chain yield fund.
- Sharplink committed $100 million in ETH, with Galaxy adding $25 million.
- The fund utilizes DeFi strategies like lending and restaking to generate active yield.
- Galaxy Digital manages risk, due diligence, and strategy execution for the fund.
Background
Galaxy Digital is a prominent financial services and investment management firm specializing in digital assets and blockchain technology. They provide institutional-grade services, including asset management, trading, and advisory, bridging the gap between traditional finance and the decentralized ecosystem.