ParaFi Secures $125M New Fund Amid Crypto Downturn
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- ParaFi raised $125 million for a new venture fund targeting stablecoins, tokenization, and on‑chain financial products for large institutions.
- ParaFi now manages roughly $2 billion in assets, having added $325 million for existing crypto investment strategies since the start of 2025.
- Henry Kravis, co‑founder of KKR, backs ParaFi, underscoring traditional‑finance interest in the firm’s crypto initiatives.
- Ben Forman, former KKR executive and founder of ParaFi, said the fund will focus on startups building stablecoins, tokenization and on‑chain financial infrastructure for institutions.
- Polymarket and other portfolio companies such as Bitwise, Kyber Network, and Anchorage illustrate ParaFi’s track record in crypto‑related ventures.
- Bitcoin has fallen more than 26 % from its January 2026 high, and the CoinDesk 20 index has lost a third of its value, yet the raise shows investors are separating short‑term price swings from the longer‑term case for blockchain financial infrastructure.
Why it matters: The $125 million infusion gives ParaFi capital to expand its stablecoin and tokenization platform, positioning the firm to capture institutional demand even as Bitcoin’s 26 % drop and a one‑third loss in the CoinDesk 20 index depress the broader crypto market. Institutional investors thus double‑down on long‑term blockchain infrastructure while short‑term price pain persists.
