While digital assets remain a major focus for institutional investors, traditional banks, and corporations, venture capital activity in this sector has significantly declined since the first quarter.
According to Galaxy Research’s latest VC report, crypto and blockchain startups secured $1.97 billion across 378 deals in the second quarter, marking a 59% reduction in funding and a 15% decrease in deal count from the previous quarter. This total is the second-lowest since Q4 2020.
Researchers noted a breakdown in the long-term correlation between Bitcoin’s (BTC) price and venture capital investments in the sector, indicating it is “struggling to recover.”
Galaxy attributes this disconnect to diminishing interest among venture capitalists and shifting market narratives that increasingly emphasize Bitcoin accumulation over other investments.
In contrast, Insights4VC data indicates a shift in capital flows. Digital asset treasury companies—funds primarily raised for purchasing cryptocurrencies—have attracted the majority of investments this year, raising $15 billion by August 21 to enhance their holdings in Bitcoin, Ether (ETH), and other tokens.
The disparity between treasuries accumulating crypto and startups pursuing venture funding highlights a changing investor perspective. Investors are increasingly seeking clearer routes to revenue and viable business models, according to Hunter Horsley, CEO of Bitwise, a crypto exchange-traded fund provider.
Amid this backdrop, this month’s VC Roundup highlights some significant funding rounds in on-chain finance, real-world assets (RWAs), and stablecoin infrastructure.
Related: VC Roundup: VCs fuel energy tokenization, AI datachains, programmable credit
Mavryk raises $10 million to advance institutional RWA tokenization
Layer-1 blockchain Mavryk Network has raised $10 million in a funding round led by Multibank Group, aiming to broaden institutional access to tokenized RWAs.
This investment is part of a larger collaboration between Mavryk and Multibank, targeting the tokenization of over $10 billion in properties located in the United Arab Emirates—one of the largest RWA tokenization efforts globally.
This funding follows Mavryk’s earlier $5 million round this year, which included investments from Ghaf Capital, Big Brain, MetaVest Capital, Collective Ventures, and others, as reported by Cointelegraph’s VC Roundup.
Related: Dubai won the real estate tokenization play
Grvt closes $19 million Series A round
Grvt, a hybrid cryptocurrency exchange focused on privacy-preserving on-chain finance, has secured $19 million in a Series A round co-led by ZKsync, Further Ventures, and EigenCloud, among others.
Utilizing ZKsync technology, Grvt is creating privacy-focused infrastructure for on-chain investment and trading. The capital will enhance its product offerings, including cross-chain applications, options markets, and RWAs.
Recently, Grvt has experienced heightened trading activity, processing over $922 million in perpetual futures volume within the past 24 hours, according to DefiLlama.
Stablecore secures $20 million to help banks, credit unions adopt stablecoins
Stablecore, a stablecoin infrastructure platform catering to credit unions and regional banks, has raised $20 million in a seed round led by Norwest, with participation from Coinbase Ventures, Crql, BankTech Ventures, and others.
The company is developing a “digital asset core” platform that integrates various components of cryptocurrency services, enabling smaller financial institutions to easily accept, manage, and utilize stablecoins.
Stablecore highlighted that the recent enactment of the US GENIUS Act represents a significant advancement for the industry and could accelerate stablecoin adoption among traditional financial institutions.
This funding round coincides with the total stablecoin market capitalization surpassing $300 billion for the first time, indicating a growing interest in the sector.
Related: Synthetic tokens see a comeback as stablecoins market cap climbs
Plural raises over $7 million to build ‘electron economy’ for real-world energy assets
Plural, a financial infrastructure platform connecting real-world energy assets with digital markets, has raised $7.13 million in a seed round led by Paradigm, supported by Maven11, Volt Capital, and Neoclassic Capital.
The company uses tokenization and smart contracts to offer investors access to high-yield energy assets, including solar farms, battery storage systems, and data centers. Plural states that over $300 million in distributed solar and battery assets are currently available for investment on its platform.
This funding comes as global electricity demand from data centers soars, driven by the growth of AI and cloud infrastructure, heightening the need for renewable and decentralized energy sources beyond traditional power grids.
Magazine: Thailand’s ‘Big Secret’ crypto hack, Chinese developer’s RWA tokens: Asia Express
