Galaxy Digital and Sharplink have signed a non-binding agreement to launch a $125 million institutional DeFi yield fund. The fund would deploy Sharplink's ether treasury into onchain liquidity strategies and provide backing for early-stage protocols. Both companies disclosed the preliminary deal but emphasized it is not yet final.
Why the agreement is non-binding
The deal between Galaxy Digital and Sharplink is explicitly non-binding. That means neither side is obligated to move forward until both agree to a definitive contract. The structure is common in early-stage partnerships where due diligence and final terms still need to be hammered out. For now, the $125 million figure and the fund's strategy remain a blueprint, not a done deal.
What the fund would do
If finalized, the fund would take Sharplink's ether holdings and put them to work in DeFi — decentralized finance — protocols. The idea is to generate yield through onchain liquidity strategies, such as providing liquidity to automated market makers or lending pools. The fund would also allocate capital to early-stage protocols, essentially venture-style bets on new DeFi projects. The target audience is institutional investors, a segment Galaxy Digital has courted for years through its asset management and trading arms.
The players behind the plan
Galaxy Digital is a crypto-focused financial services firm founded by Mike Novogratz. It runs a merchant bank, an asset manager, and a trading desk. Sharplink, the other party in the agreement, is bringing its ether treasury to the table. The companies did not specify how much ether Sharplink holds or what share of its treasury would go into the fund. The partnership pairs Galaxy's institutional infrastructure with Sharplink's crypto reserves.
For now, the deal exists only on paper. The next steps — converting that non-binding agreement into a binding one — will determine whether the $125 million DeFi yield fund actually launches. Neither company has set a deadline for reaching a final agreement.
