CMT Digital Raises $136M for Crypto Startups Amid VC Slowdown

CMT Digital, a Chicago-based venture capital firm specializing in digital assets, has defied the broader market trend by closing its fourth investment fund at $136 million. This substantial capital raise occurs against a backdrop of slowing blockchain venture capital activity throughout 2025, positioning the firm as a contrarian investor with conviction in the long-term potential of the crypto ecosystem. The successful fund closure signals that while overall market sentiment may be cautious, targeted opportunities continue to attract sophisticated capital.

According to the firm’s announcement, the new fund will specifically target founders developing the next wave of crypto infrastructure and applications. This focus suggests CMT Digital is looking beyond short-term market volatility and betting on foundational technologies that could enable broader adoption. The firm’s strategy appears to be timing investments during a period of market consolidation, potentially allowing for more favorable valuations and access to high-quality teams.

Notably, CMT Digital has already begun deploying capital from the new fund, with stablecoin startups representing an early allocation. This move into stablecoins—digital assets designed to maintain a stable value relative to a specified asset, typically a fiat currency—highlights the firm’s belief in the growing importance of payment infrastructure and settlement layers within the blockchain ecosystem. Stablecoins have emerged as one of the most practical applications of blockchain technology for everyday financial transactions.

The early investment in stablecoin startups suggests CMT Digital sees particular value in projects that bridge traditional finance with digital assets. As regulatory frameworks around stablecoins become clearer in jurisdictions including the United States, these investments could position the firm to benefit from increased institutional usage and mainstream adoption. This strategic allocation demonstrates how the firm is executing on its thesis despite the broader VC slowdown.

Investment partner Sam Hallene revealed to Fortune that the $136 million fund attracted backing from a diverse mix of wealthy individuals, family offices, and institutional investors. While Hallene declined to name specific participants, the composition of this investor base indicates growing sophistication in crypto venture investing. Family offices and institutional investors typically conduct extensive due diligence before committing capital, suggesting strong confidence in CMT Digital’s strategy and the underlying market opportunity.

The ability to secure funding from these investor categories during a period of market uncertainty speaks to CMT Digital’s established track record and reputation within the digital assets space. Based in Chicago, the firm has built credibility through multiple fund cycles and has developed specialized expertise in evaluating blockchain startups. This latest fundraise demonstrates that quality venture firms with proven strategies can still access capital even when overall market conditions become more challenging.

CMT Digital specifically cited improving regulatory clarity as a key factor driving its continued investment in the sector. After years of regulatory uncertainty in the United States and other major markets, 2025 has seen more defined frameworks emerging for digital assets. This developing regulatory landscape provides greater predictability for startups building blockchain infrastructure and applications, reducing one of the significant risks that has historically concerned investors.

The firm’s announcement also highlighted accelerating institutional adoption as another positive trend supporting its investment thesis. As more traditional financial institutions explore blockchain technology and digital assets, the market for crypto infrastructure and applications expands significantly. CMT Digital’s focus on backing founders developing next-generation solutions positions the firm to benefit from this institutional wave, which could drive the next phase of growth in the digital assets ecosystem.