Dragonfly Capital has closed a $650 million fourth venture fund, adding fresh firepower at a time when crypto venture fundraising remains well below its cycle highs.
The firm is positioning the new vehicle to back startups building the financial backbone of the digital asset economy, with a clear tilt toward stablecoins, trading infrastructure and tokenized real-world assets.
Focus On Stablecoin And Payments Infrastructure
A core portion of the fund will be directed toward companies developing stablecoin ecosystems and blockchain-based payment rails.
The strategy reflects the growing view among investors that stablecoins are emerging as crypto’s most durable product-market fit, particularly for settlement, cross-border transfers and onchain cash management.
By targeting this segment, Dragonfly is aligning its capital with the broader institutional push toward dollar-backed digital assets and programmable money.
Expansion Into Tokenized Assets And Credit Markets
The firm also plans to allocate capital to platforms bringing traditional financial instruments onchain, including tokenized funds, private credit and yield-generating products.
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Venture activity in these areas has accelerated as asset managers and fintech firms explore blockchain for distribution and settlement efficiency.
Dragonfly’s investment focus suggests a bet that the next wave of growth will come from blockchain-based versions of familiar financial products rather than purely crypto-native consumer applications.
Early- And Growth-Stage Market Structure Bets
The fund will primarily target early- and growth-stage rounds in companies building trading venues, brokerage layers and liquidity infrastructure.
With many venture firms still in capital preservation mode, Dragonfly is aiming to use the current downturn to enter high-conviction deals at more disciplined valuations.
The approach mirrors its prior fund, which backed several projects that later became major players in their categories.
The new raise strengthens Dragonfly’s position among the largest dedicated crypto venture investors and gives it significant capacity to shape the sector’s shift toward institutional-grade financial use cases.
As capital becomes more selective across the industry, the firm is concentrating its resources on the segments it believes will define blockchain’s integration with global finance.
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