ParaFi, a New York-based digital asset management company backed by KKR co-founder Henry Kravis, has raised $125 million for a new venture fund, Bloomberg reported.
ParaFi said it has raised $325 million in funding for existing cryptocurrency investment strategies since the start of 2025. The firm currently manages approximately $2 billion.
Founder Ben Forman, who left KKR in 2018, said the new company will focus on startups that provide stablecoins, tokenization and on-chain financial products to large institutions.
Since its inception, ParaFi has supported companies including prediction market Polymarket, crypto asset management company Bitwise, decentralized finance company Kyber Network and custody company Anchorage.
The financing is notable because it comes at a weak time for the crypto industry. Bitcoin has fallen more than 26% from the 2026 high hit in January, and only recently recovered to the $70,000 mark. The value of the broader market, as measured by the CoinDesk 20 (CD20) index, fell by a third over the same period.
According to Bloomberg, Forman said investors are starting to separate short-term token price fluctuations from the longer-term picture of blockchain-based financial infrastructure.
