Dragonfly Capital has closed its fourth venture fund, securing $650 million, at a time when crypto venture funding is far below its previous peak. Instead of chasing trendy tokens, the firm is focusing on startups building the essential infrastructure for the digital asset economy, including stablecoins, trading systems, and tokenized real-world assets.
Backing Stablecoins and Payment Networks
The fund plans to invest heavily in companies developing stablecoins and blockchain-based payment solutions. Investors see stablecoins as one of the most reliable use cases in crypto—useful for payments, international transfers, and on-chain treasury management. By concentrating here, Dragonfly aligns its capital with growing institutional demand for dollar-backed digital assets and programmable financial tools.
Moving Into Tokenized Assets and Credit Platforms
Dragonfly also aims to fund projects that bring traditional financial products onto the blockchain, such as tokenized funds, private credit, and yield-focused instruments. As financial firms explore blockchain for efficiency and accessibility, venture activity in this space is picking up. The firm’s strategy indicates that blockchain versions of established financial products, rather than consumer-focused tokens, may drive the next wave of growth.
Targeting Early- and Growth-Stage Infrastructure
The fund is primarily focused on early- and growth-stage companies building trading platforms, brokerages, and liquidity systems. While many venture investors are cautious, Dragonfly is using the current market slowdown to make strategic investments at attractive valuations, a tactic that has paid off in prior funds.
With this new fund, Dragonfly strengthens its role as a top specialized crypto venture investor, directing resources toward infrastructure that will shape how blockchain integrates with global finance—prioritizing stability and long-term relevance over short-term hype.