ParaFi, a New York-based digital asset manager backed by KKR co-founder Henry Kravis, raised $125 million for a new venture fund, Bloomberg reported.
The cash adds to the $325 million ParaFi said it has raised for existing cryptocurrency investment strategies since the beginning of 2025. The company now manages about $2 billion.
Founder Ben Forman, who left KKR in 2018, said the new vehicle will focus on startups working on stablecoins, tokenization and on-chain financial products for large institutions.
Since its inception, ParaFi has backed companies such as prediction market Polymarket, crypto asset manager Bitwise, decentralized finance firm Kyber Network, and custodian Anchorage.
The fundraising stands out because it comes at a time of weakness for the cryptocurrency sector. Bitcoin has fallen more than 26% from the 2026 high it reached in January, and only recently regained the $70,000 mark. The broader market, as measured by the CoinDesk 20 Index (CD20), lost a third of its value during the same period.
Investors are starting to separate short-term token price swings from the long-term case for blockchain-based financial infrastructure, Forman said, according to Bloomberg.
