The $125 Million DeFi Inflow: Galaxy and Sharplink Partner to Revive Protocol Liquidity

Galaxy Digital and Ethereum treasury firm Sharplink have launched a $125 million private DeFi fund—Sharplink seeding $100 million of its corporate ETH reserves and Galaxy contributing $25 million and acting as active manager. The vehicle will deploy capital into vetted, blue‑chip decentralized lending protocols and liquid staking derivatives using Galaxy’s institutional trading and risk framework. The move signals a return of institutional players from passive index accumulation toward yield‑generating DeFi strategies, likely boosting on‑chain liquidity for vetted protocols, raising operational standards across DeFi, and validating corporate treasury use of active, compliance‑aware managers.