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Galaxy and SharpLink to Launch $125 Million Ethereum DeFi Yield Fund

Galaxy Digital and SharpLink announced a non-binding agreement for a $125 million onchain fund aimed at deploying capital into Ethereum-based DeFi protocols and liquidity strategies.

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Fact Check
All key elements of the claim are confirmed by multiple authoritative sources. SharpLink's own official X account (@Sharplink) announced the fund on May 11, 2026, with a direct link to the GlobeNewswire press release. Business Insider (via GlobeNewswire) and The Defiant independently corroborate: (1) the total fund size of $125M, (2) SharpLink contributing $100M from its ETH reserves, (3) Galaxy contributing $25M and serving as investment manager, (4) the fund's focus on Ethereum-based DeFi yield and liquidity strategies, and (5) the non-binding MOU nature of the agreement pending definitive documentation. The only minor nuance is that SharpLink's contribution is described as coming from its 'staked Ethereum treasury' or 'permanent capital' rather than simply 'ETH reserves,' but this is semantically consistent with the claim. The fund is not yet formally launched (pending definitive docs), which aligns with the claim's framing of a signed non-binding agreement.
Summary

Galaxy Digital and SharpLink announced a non-binding agreement on May 11 to launch the $125 million Galaxy SharpLink Onchain Yield Fund, an investment vehicle focused on deploying capital into Ethereum-based DeFi protocols and onchain liquidity strategies. Under the proposed structure, SharpLink plans to contribute $100 million from its Ethereum reserves and Galaxy plans to provide $25 million. The companies said the fund would target yield opportunities directly on blockchain networks, reflecting continued institutional interest in Ethereum-native investment strategies.

Terms & Concepts
  • DeFi: DeFi refers to blockchain-based financial applications that use smart contracts to offer services such as lending, trading, and yield generation without traditional intermediaries.
  • Onchain yield: Onchain yield is return earned directly through blockchain activities such as staking, lending, or providing liquidity to decentralized protocols.
  • Ethereum reserves: Ethereum reserves are ETH holdings maintained by a company or fund for treasury use, investment exposure, or participation in blockchain-based strategies.