CMT Digital has finalized a $136 million raise for its fourth investment fund, aiming to support the next wave of early-stage crypto and decentralized finance (DeFi) startups. Despite a pronounced slump in venture capital activity across the digital asset space, the Chicago-based firm has remained committed to backing innovative blockchain projects that aim to reshape financial infrastructure from the ground up.
The newly closed Fund IV will concentrate on startups developing core blockchain infrastructure and DeFi protocols, underscoring CMT Digital’s long-term approach in a market often driven by short-term hype cycles. The firm, a division of the well-established CMT Group, continues to leverage its roots in quantitative trading to identify ventures with long-lasting potential. According to Partner Sam Hallene, the fund received commitments from a diverse base of investors, including family offices and institutional limited partners, signaling sustained — if cautious — interest in crypto ventures amidst market volatility.
“In a world steadily shifting on-chain, we believe the most transformative innovations are still to come,” said Hallene. “With this new capital and the backing of our trusted partners, we’re ready to support visionary founders building the financial systems of tomorrow.”
CMT Group began its foray into crypto investing in 2016 and has since amassed a portfolio exceeding 200 investments. That experience has informed a refined investment thesis, one that prizes technical depth, infrastructure resilience, and real-world applicability over speculative fervor. The firm’s decision-making process is heavily influenced by its trading heritage, drawing on in-house research and market insights to identify the foundational technologies poised for enduring relevance.
Each of CMT Digital’s four funds has reflected a strategic evolution. Their first fund helped establish access to digital assets, investing in early pillars of the ecosystem such as Coinbase and BitGo. Fund II emphasized the development of essential on-chain infrastructure through bets on firms like Consensys and dYdX. Fund III marked a transition toward utility, expanding beyond financial services into consumer-facing applications with investments in projects like Axie Infinity’s parent company, Sky Mavis, and payments-focused Ethena. Fund IV, now fully capitalized, is centered on “re-architecting finance,” supporting startups creating blockchain-native infrastructure designed for global scalability and interoperability.
However, CMT’s fundraising success comes amid one of the most challenging periods for crypto venture capital since 2020. Galaxy Digital’s Q2 2025 report revealed that startups in the sector raised just $1.97 billion across 378 deals — a staggering 59% drop from the previous quarter. Even after excluding a $2 billion sovereign-linked deal involving Binance earlier this year, the data reflects a steep decline from previous high points. For context, Q1 2022 alone saw more than $13 billion flow into crypto and blockchain startups.
This broader slowdown hasn’t deterred CMT Digital. Rather, it has reinforced the firm’s contrarian approach of investing through both bull and bear markets. “Periods of reduced hype often present the best opportunities to build and invest,” said a firm representative. “We’ve seen time and again that some of the most impactful projects are born during down cycles, when teams are forced to focus on fundamentals.”
One of the key differentiators for CMT Digital is its ability to combine operational expertise from traditional finance with a deep understanding of blockchain technology. The firm’s team includes traders, engineers, and former founders who bring a multidisciplinary approach to venture capital, often providing portfolio companies with strategic guidance beyond capital.
Looking ahead, the firm is particularly interested in areas such as decentralized identity, tokenized real-world assets, scalable layer-2 solutions, and cross-chain interoperability. These domains, CMT believes, are critical to the next phase of blockchain adoption and could serve as the backbone for global financial services in a digitally-native future.
Moreover, the firm sees growing demand from institutional clients and enterprises exploring blockchain integration. This shift is pushing startups to develop more robust, secure, and compliant infrastructure — areas where CMT’s background gives it a distinct advantage in evaluating technical feasibility and business potential.
CMT Digital also places a strong emphasis on governance and regulatory foresight. As jurisdictions around the world move toward clearer crypto regulations, the firm seeks out projects that prioritize compliance and transparency, believing that regulatory readiness will be a key competitive edge in the years to come.
Another focal point is developer tooling and infrastructure scalability. As on-chain activity increases, the need for reliable, efficient developer environments becomes more critical. CMT is actively scouting startups that provide modular, composable building blocks for Web3 applications, aiming to catalyze faster and more secure innovation across the ecosystem.
In addition to direct startup investments, the firm is considering strategic partnerships with academic institutions and research labs, hoping to tap into cutting-edge discoveries and accelerate the commercialization of blockchain breakthroughs. This dual-pronged approach — supporting both grassroots innovation and institutional adoption — positions CMT Digital as a bridge between Web3’s experimental frontier and the financial mainstream.
Despite prevailing market headwinds, CMT Digital’s successful fundraise underscores a growing recognition that the crypto industry is maturing. Rather than chasing speculative gains, investors are now drawn to infrastructure-level plays that promise sustainable value creation.
With Fund IV, CMT Digital aims to not only weather the current downturn but to play a pivotal role in shaping the digital economy’s next chapter.