CMT Digital, a Chicago-based crypto venture capital firm, has successfully closed its fourth fund with $136 million, focusing on blockchain startups and stablecoin innovations amid a slowdown in crypto VC funding in 2025. The fund targets infrastructure and applications as regulatory clarity boosts institutional adoption.
-
CMT Digital’s $136 million fund supports emerging crypto infrastructure.
-
Already 25% invested in stablecoin startups like Coinflow and Codex.
-
Crypto VC deals reached $7 billion in the first half of 2025, down from $24.3 billion in 2021 peaks, per PitchBook data.
Discover how CMT Digital’s $136M fund is fueling blockchain innovation in 2025 despite VC slowdowns. Explore investments in stablecoins and public debuts—stay ahead in crypto trends today.
What is CMT Digital’s Latest Fundraise and Its Focus?
CMT Digital fundraise marks a significant milestone for the Chicago-based venture capital firm, which has closed its fourth fund totaling $136 million dedicated to blockchain startups. This investment pool emphasizes the development of next-generation crypto infrastructure and applications, capitalizing on improving regulatory environments and accelerating institutional adoption in the digital assets space. Announced on Wednesday, the fund reflects confidence in the long-term potential of on-chain technologies despite current market challenges.
Founded with a specialization in digital assets, CMT Digital has a track record of backing transformative fintech projects. Investment partner Sam Hallene highlighted the fund’s strategy in an interview with Fortune, noting support from a diverse group of wealthy individuals, family offices, and institutional investors. He emphasized the firm’s commitment without disclosing specific participants, underscoring the private nature of these backings.
Early commitments from the fund demonstrate proactive engagement. Approximately a quarter of the $136 million has already been allocated to stablecoin startups, including Coinflow and Codex. These investments align with CMT Digital’s thesis on fintech disruptors while remaining adaptable to emerging categories in the blockchain ecosystem. Hallene stated, “As the world continues to move on chain, we believe the most transformative ideas are still ahead,” encapsulating the optimistic outlook driving the fund.
Source: PitchBook
The closure of this fund in early October positions CMT Digital as a key player in a landscape where fundraising has cooled. While Bitcoin has achieved new all-time highs in 2025 and the U.S. government signals a more pro-crypto stance, overall venture activity in the sector has not kept pace. This $136 million raise stands out as one of the larger hauls in recent months, signaling resilience among established firms like CMT Digital.
PitchBook data provides context for this environment, reporting approximately $7 billion invested across 751 deals in the first half of 2025. This figure pales in comparison to the $24.3 billion deployed in 2021 or the $30.3 billion in 2022, illustrating a marked deceleration. Experts attribute this slowdown to macroeconomic factors, including interest rate hikes and heightened scrutiny on riskier assets, though signs of recovery emerge with clearer regulations.
How Does Crypto Venture Funding in 2025 Compare to Previous Years?
Crypto venture funding in 2025 has experienced a notable slowdown, with total investments reaching just $7 billion in the first half, according to PitchBook. This represents a significant drop from the boom years, where 2021 saw $24.3 billion across numerous deals and 2022 followed with $30.3 billion, fueled by hype around decentralized finance and non-fungible tokens. The current restraint stems from a combination of global economic pressures and a maturing market seeking sustainable models over speculative growth.
Despite the dip, selective opportunities persist, particularly in infrastructure and stablecoins, as evidenced by CMT Digital’s allocations. Regulatory advancements, such as potential U.S. legislation on digital assets, are expected to catalyze renewed interest. Industry analysts, including those from PitchBook, note that while deal volumes remain subdued, the quality of investments is improving, with a focus on compliant and scalable projects. For instance, stablecoin issuers benefit from their utility in cross-border payments and DeFi, attracting institutional capital wary of volatility.
Sam Hallene’s insights reinforce this trend, pointing to the fund’s openness to fintech disruptors. Supporting data from market reports indicates that institutional adoption could drive funding back toward $10-15 billion annually by year-end 2025, provided Bitcoin’s momentum continues and geopolitical stability supports risk appetite. This structured approach ensures that funds like CMT Digital’s contribute to a more robust crypto ecosystem, prioritizing long-term viability over short-term gains.
Blockchain’s integration into traditional finance further bolsters optimism. Companies leveraging distributed ledger technology for efficiency are seeing increased backing, even as overall VC paces slow. CMT Digital’s strategy exemplifies this, blending proven expertise with adaptability to navigate 2025’s challenges.
Frequently Asked Questions
What Are the Main Targets of CMT Digital’s $136 Million Fund?
CMT Digital’s $136 million fund primarily targets founders building the next wave of crypto infrastructure and applications. With a focus on stablecoins and fintech disruptors, it has already invested in startups like Coinflow and Codex. This approach leverages improving regulations and institutional interest to foster innovative blockchain solutions, ensuring sustainable growth in the digital assets sector.
Why Has Crypto VC Funding Slowed in 2025?
Crypto VC funding has slowed in 2025 due to macroeconomic headwinds like higher interest rates and a shift toward risk-averse investments, with only $7 billion deployed in the first half per PitchBook. Despite Bitcoin’s highs and pro-crypto policies, investors prioritize established projects. This creates opportunities for quality funds like CMT Digital’s, focusing on infrastructure amid broader caution.
Key Takeaways
- Resilient Fundraising: CMT Digital’s $136 million close highlights endurance in a sluggish crypto VC market, backed by diverse institutional support.
- Strategic Investments: Early allocations to stablecoin startups like Coinflow and Codex underscore a fintech disruption focus, adapting to on-chain trends.
- Market Outlook: With $7 billion in H1 2025 funding per PitchBook, monitor regulatory clarity for potential recovery—consider blockchain exposure for portfolios.
Crypto Companies Go Public Amid VC Challenges
Even as crypto-focused venture capital firms navigate a slowdown, several blockchain companies achieving public status in 2025 have posted impressive market performances. This trend signals growing mainstream acceptance and provides liquidity options for early investors, including those from funds like CMT Digital’s.
In June, stablecoin issuer Circle experienced a remarkable 167% surge on its New York Stock Exchange debut, validating the sector’s utility in stable value transfer. Following in September, blockchain lender Figure rose about 24% upon listing on Nasdaq, benefiting from its focus on tokenized assets and lending protocols. Both entities received early support from CMT Digital, demonstrating the firm’s eye for high-potential ventures that transition successfully to public markets.
August brought another success with crypto exchange and media company Bullish, which skyrocketed 218% on its first trading day on the NYSE. These debuts contrast with the subdued VC environment, offering alternative paths for capital raising and investor returns. Analysts view these events as harbingers of broader institutional integration, where public listings bridge traditional and decentralized finance.
Conclusion
CMT Digital’s $136 million fundraise exemplifies strategic resilience in the evolving landscape of crypto venture funding 2025, channeling resources into blockchain infrastructure and stablecoin innovations despite a slowdown to $7 billion in early-year investments. With public successes like Circle’s 167% debut and Bullish’s 218% surge, the sector demonstrates maturity and appeal to institutions. As regulatory clarity advances, forward-thinking investors should explore these opportunities to position for the transformative ideas ahead in digital assets.
Related: Brevan Howard, Galaxy, and Weiss have backed Canaan’s $72 million Bitcoin mining raise, reflecting targeted interest in mining infrastructure.
