Crypto venture capital funding in 2025 has slowed, shifting focus to infrastructure, stablecoins, and payments while Bitcoin projects often bootstrap via community support, bypassing traditional VC routes.
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Declining deal activity: Funding volumes and counts dropped in Q4 2025, per Galaxy Research data.
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Selective investments target core digital asset plumbing like stablecoins and cross-border payments.
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Bitcoin ecosystem thrives on grassroots funding, with $25M raised by Telcoin for its digital asset bank amid macroeconomic caution.
Crypto venture capital in 2025 pivots to stablecoins and infrastructure as VC bets cool. Explore key funding rounds in Telcoin, Hercle, and more for insights on the evolving landscape. Stay ahead—read now!
What is the current state of crypto venture capital funding in 2025?
Crypto venture capital funding in 2025 shows a subdued pace, particularly in the fourth quarter, with fewer blockbuster deals compared to prior periods. Investors are exercising caution due to macroeconomic uncertainties and competition from sectors like AI, which has captured a larger share of VC dollars. However, targeted capital continues to support foundational projects in stablecoins, payment systems, and Bitcoin-related infrastructure that emphasize practical utility over speculative growth.
Funding now targets infrastructure, stablecoins and payments as big bets fade and Bitcoin projects bootstrap.
The crypto venture capital landscape remains subdued in the fourth quarter, with fewer high-profile funding rounds closing compared to earlier in the year.
Kaden Stadelmann, chief technology officer at Komodo Platform, stated that the “crypto sector is facing pressure from numerous angles,” noting that AI has siphoned considerable demand from crypto, and that “VC investment in AI far outpaces VC investment into crypto.”
Stadelmann also cited macroeconomic uncertainty as a reason venture capital firms are taking a more cautious approach.
At the same time, much of the remaining activity has shifted toward the core Bitcoin (BTC) business ecosystem, which often doesn’t rely on traditional venture funding.
“Bitcoin-focused ventures can bootstrap through community and network support rather than VC,” said Gabe Salinas, CEO of Alamo Labs and founder of the San Antonio Bitcoin Club.
Despite the slowdown, capital is still flowing selectively into projects that build the plumbing of the digital asset economy, particularly in areas such as stablecoins, payment infrastructure and decentralized trading platforms.
The latest edition of VC Roundup explores funding rounds from Telcoin, Hercle, Momentum, Temple Digital Group and Ark Research.
Crypto venture deal activity has continued to weaken in 2025, according to the latest available data, with both funding volumes and deal counts trending downward. Source: Galaxy Research
How are stablecoin projects faring in recent crypto funding rounds?
Stablecoin initiatives are attracting substantial interest amid the push for reliable digital payment solutions. For instance, Hercle secured $60 million to enhance its stablecoin infrastructure, enabling faster global transactions for institutions. According to RWA.xyz data, the stablecoin market has accelerated sharply in 2025, approaching mass adoption thresholds with transaction volumes surging. Experts highlight that these projects address real-world needs like remittances and cross-border settlements, settling 90% of transactions in under five minutes, as reported by Hercle for its 200+ institutional clients handling over $20 billion in volume. This focus on scalability and compliance underscores the sector’s maturity, with funding supporting liquidity lines and equity expansions to meet rising demand from financial institutions and payment providers.
Frequently Asked Questions
What recent funding did Telcoin secure for its digital asset initiatives?
Telcoin raised $25 million in a pre-Series A round to meet capitalization needs for its Nebraska Digital Asset Depository Institution charter. This capital advances the launch of its digital asset bank and the eUSD stablecoin, tailored for consumer payments and remittances rather than trading. The project operates under U.S. banking oversight to ensure secure custody and blockchain-based services.
Why is Bitcoin infrastructure gaining traction without heavy VC involvement?
Bitcoin infrastructure is thriving through community-driven bootstrapping, leveraging network effects and grassroots support to fund development. As Gabe Salinas of Alamo Labs explains, these ventures reduce reliance on traditional VC by tapping into dedicated user bases, fostering sustainable growth amid broader market caution. This model supports core ecosystem tools like wallets and nodes without external capital pressures.
The stablecoin market has experienced a sharp acceleration in 2025 and is poised to reach a tipping point of mass adoption. Source: RWA.xyz
Telcoin’s $25 Million Push Toward a Digital Asset Bank
Telcoin, a blockchain-focused fintech firm, completed a $25 million pre-Series A funding round to propel its digital asset bank launch slated for later in 2025. This infusion addresses regulatory capitalization under the Nebraska Digital Asset Depository Institution framework, permitting supervised custody of digital assets and integrated financial services. Additionally, the funds back the introduction of eUSD, a USD-backed stablecoin optimized for everyday transactions like payments and cross-border remittances, prioritizing accessibility over speculative trading.
Hercle’s $60 Million Expansion in Stablecoin Infrastructure
Hercle, specializing in digital asset and stablecoin solutions, amassed $60 million to fuel worldwide growth and refine institutional tools for expedited international payments. The package comprises a $10 million equity round spearheaded by F-Prime, joined by Fulgur Ventures and Exponential Science, plus a $50 million credit facility for liquidity. With a track record of processing over $20 billion across more than 200 clients—including banks, payment networks, and exchanges—Hercle’s platform achieves sub-five-minute settlements for 90% of transactions, emphasizing efficiency for high-volume global operations.
Momentum’s $10 Million Boost on the Sui Blockchain
Momentum, Sui’s premier decentralized exchange, clinched $10 million at a $350 million fully diluted valuation. Led by HashKey Capital and backed by Anchorage Digital, the round bolsters Momentum’s dominance in DeFi on Sui, boasting 2.1 million users and $22 billion in trading volume. Founded by ex-Libra and Amazon engineer Wendy Fu, the protocol eyes cross-chain expansions and compliance upgrades to attract regulated institutional participation, enhancing onboarding for professional traders.
Momentum’s TVL peaked above $600 million in late October. Source: DefiLlama
Temple Digital’s $5 Million Seed for Institutional Trading Tools
Temple Digital Group, centered on the privacy-centric Canton Network, garnered $5 million in seed funding from Paper Ventures and over a dozen firms. The capital expands its trading infrastructure, merging conventional elements like order books with blockchain features such as tokenization and real-time settlements. Integrated with digital wallets, the platform caters to institutional needs for compliance and efficiency. The Canton Network, developed by Digital Asset—which recently drew $135 million from Goldman Sachs and BNP Paribas among others—continues to garner backing from top-tier financial players for synchronized asset handling.
Arx Research’s $6.1 Million for Merchant-Focused Stablecoin Hardware
Arx Research, bridging hardware and software for digital payments, raised $6.1 million from Castle Island Ventures, Placeholder, 1kx, and Inflection to ramp up production ahead of a 2025 commercial rollout. The investment targets the Burner Capital PoS device, which unifies stablecoin and fiat acceptance in one terminal. Compatible with Flexa, it supports cryptocurrencies like Bitcoin, Ether, and Solana, streamlining merchant adoption of stablecoins for seamless transactions.
Key Takeaways
- Shift to Fundamentals: Crypto venture capital funding in 2025 prioritizes infrastructure over hype, with stablecoins and payments leading investments.
- Bitcoin’s Independence: Community bootstrapping enables Bitcoin projects to flourish without VC dependency, as seen in ecosystem support models.
- Regulatory Alignment: Funding rounds like Telcoin’s highlight compliance focus, preparing digital assets for mainstream banking integration—explore opportunities in this space.
Conclusion
In summary, crypto venture capital funding in 2025 reflects a maturing market, channeling resources into stablecoin infrastructure, payment innovations, and Bitcoin ecosystems amid economic headwinds. Projects like Hercle and Momentum demonstrate resilience through targeted growth and institutional appeal, backed by data from sources such as Galaxy Research and DefiLlama. As stablecoin adoption nears critical mass, per RWA.xyz insights, stakeholders should monitor these developments for emerging opportunities in the digital economy—position your strategies accordingly for long-term gains.
