ParaFi, a New York-based digital asset management firm backed by KKR co-founder Henry Kravis, has raised $125 million for a new venture fund, Bloomberg reports.
This cash is on top of the $325 million ParaFi has raised for its existing crypto investment strategy since the beginning of 2025, with the company currently managing approximately $2 billion.
Founder Ben Forman, who left KKR in 2018, said the new organization will focus on startups working on stablecoins, tokenization and on-chain financial products for large institutions.
Since its founding, ParaFi has backed companies such as prediction market Polymarket, crypto asset management company Bitwise, decentralized finance company Kyber Network, and custodian Anchorage.
This latest funding stands out because it comes during a downturn in the crypto sector. Bitcoin has fallen more than 26% from its 2026 high in January, only recently recovering to the $70,000 level. The broader market, as measured via the CoinDesk 20 (CD20) index, lost a third of its value over the same period.
According to Bloomberg, Forman said investors are starting to differentiate between short-term token price fluctuations and the long-term case for blockchain-based financial infrastructure.
