Galaxy, the New York-based crypto and data center company founded by billionaire Mike Novogratz, is teaming up with Miami-based Ethereum treasury company Sharplink to launch a $125 million fund targeting higher returns in decentralized finance, or DeFi. The sector uses blockchain-based software to deliver lending, trading and yield products without the banks and brokers that traditionally provide them.

The private investment vehicle, called the Galaxy Sharplink Onchain Yield Fund, is expected to launch in the coming weeks. It has secured $125 million in commitments, including $100 million from Sharplink’s Ethereum treasury and $25 million from Galaxy. Galaxy will also serve as the fund’s exclusive manager, responsible for choosing protocols, sizing positions and managing risk.

For Sharplink, which has a market capitalization of $1.5 billion and ranks as the second-largest Ethereum treasury company, the fund........

© Forbes