Ethereum

Mike

Galaxy

DeFi

Yield

<p>Galaxy Digital and SharpLink have launched the Galaxy SharpLink Onchain Yield Fund with $125 million to deploy into DeFi protocols.</p>
<div id="cn-block-summary-block_009d1c7840fc5f72ebc282f9f0653da2" class="cn-block-summary">
 <div class="cn-block-summary__nav tabs"><span>Summary</span>
 </div>
 <div class="cn-block-summary__content">
  <ul>
   <li>SharpLink will commit $100 million from its staked ETH treasury to the fund, with Galaxy Digital contributing $25 million and managing investments.</li>
   <li>Capital will be deployed across DeFi liquidity protocols and onchain yield strategies while maintaining SharpLink’s core Ethereum exposure.</li>
   <li>SharpLink holds 872,984 ETH in treasury and has generated 18,800 ETH in staking rewards since launching its Ethereum strategy in June 2025.</li>
  </ul>
 </div>
</div>
<p>Galaxy Digital and SharpLink <a href="https://crypto.news/sharplinks-eth-yield-push-grows-after-12-1m-q1-revenue/" rel="noopener noreferrer nofollow">announced</a> a non-binding agreement on May 11 to launch the Galaxy Sharplink Onchain Yield Fund, a $125 million limited partnership structured to put part of SharpLink’s staked Ethereum treasury to work across DeFi strategies. Galaxy will serve as investment manager.</p>
<p>SharpLink will contribute $100 million from its staked ETH position, with Galaxy adding $25 million of its own capital. Mike Novogratz, founder and CEO of Galaxy, <a href="https://www.cryptotimes.io/2026/05/11/galaxy-digital-sharplink-to-launch-125m-institutional-onchain-yield-fund/" rel="noopener noreferrer nofollow">said</a> the infrastructure for institutional DeFi participation “has matured to a point where allocators can access yield, liquidity, and risk management with the same rigor they expect in traditional markets.”</p>
<h2 class="wp-block-heading" id="what-the-fund-will-do">What the fund will do</h2>
<p>The fund will deploy capital across DeFi liquidity protocols and other onchain yield-generating strategies. The structure is designed to keep SharpLink’s core ETH exposure intact while adding an active yield layer on top of its existing staking operations.</p>
<p>You might also like: <a href="https://crypto.news/armstrong-says-clarity-act-banks-got-must-haves/" rel="noopener noreferrer nofollow"> Armstrong defends CLARITY Act stablecoin yield deal </a></p>
<p>SharpLink CEO Joseph Chalom <a href="https://crypto.news/sharplinks-eth-yield-push-grows-after-12-1m-q1-revenue/" rel="noopener noreferrer nofollow">said</a> the strategy aims to provide liquidity to high-quality protocols while generating returns above the average Ethereum staking rate. “Operational rigor is non-negotiable,” he said, noting the fund’s risk management framework will apply the same discipline Galaxy uses across its lending, trading, and asset management businesses.</p>
<p>The announcement came alongside SharpLink’s Q1 2026 earnings, which showed revenue rising to $12.1 million from $742,000 in the same period a year earlier. SharpLink posted a net loss of $685.6 million for the quarter, driven by unrealized depreciation in its ETH portfolio as Ethereum fell from roughly $3,354 in mid-January to $2,104 by quarter-end.</p>
<h3 class="wp-block-heading" id="sharplink-s-position-in-the-ethereum-ecosystem">SharpLink’s position in the Ethereum ecosystem</h3>
<p>SharpLink holds 872,984 ETH and is the second-largest publicly traded corporate Ethereum holder, behind Bitmine Immersion Technologies. Its treasury has <a href="https://crypto.news/from-treasuries-to-validators-sharplink-doubles-down-on-ethereum-staking/" rel="noopener noreferrer nofollow">generated</a> 18,800 ETH in staking rewards since June 2025 with over 90% of its holdings staked at all times.</p>
<p>The Galaxy fund marks a meaningful shift in how public companies are thinking about crypto treasury management, moving beyond passive staking toward active DeFi deployment. Galaxy also <a href="https://crypto.news/galaxy-and-state-street-launch-solana-based-sweep-tokenized-cash-fund/" rel="noopener noreferrer nofollow">launched</a> a separate tokenized cash fund with State Street last week built on Solana, signalling a broader push by the firm into institutional onchain yield infrastructure.</p>
<p>Read more: <a href="https://crypto.news/can-sol-hit-200-as-coinbase-adds-100000-sol-collateral-lending/" rel="noopener noreferrer nofollow"> Can SOL hit $200 as Coinbase adds $100,000 SOL collateral lending? </a></p>

Galaxy SharpLink launches $125M DeFi yield fund

Table of Contents

crypto.news

Other articles published on May 12, 2026

Join our free newsletter for daily crypto updates!