Galaxy Digital and Sharplink Plan $125 Million Onchain Yield Fund Built on Staked Ethereum Treasury

Galaxy Digital Inc. and Sharplink Inc. announced a non-binding memorandum of understanding on May 11 to form the Galaxy Sharplink Onchain Yield Fund, a private vehicle targeting $125 million in commitments. The capital split: $100 million from Sharplink’s staked Ethereum treasury and $25 million from Galaxy, which would also serve as investment manager.

The fund is designed to deploy capital across DeFi liquidity protocols and other onchain yield strategies while letting Sharplink keep its core ETH exposure intact. Galaxy’s institutional research and risk-management framework would govern protocol selection, exposure sizing, and ongoing monitoring.

We’re excited to announce our non-binding agreement with @GalaxyHQ to launch a first-of-its-kind $125M ecosystem liquidity fund to deploy capital into high-quality DeFi protocols and generate risk-managed returns that increase our ETH per share.

The Galaxy Sharplink Onchain… pic.twitter.com/UhKpsiCG2L

— Sharplink (@Sharplink) May 11, 2026

The structure matters because a publicly traded company with an ETH-heavy balance sheet is proposing to route that treasury through an institutional-grade fund manager and put it to work in DeFi. Sharplink frames the goal as increasing ETH per share, meaning the treasury itself becomes a productive engine rather than a static holding.

Planned to launch in the coming weeks, Sharplink will use its permanent capital to contribute $100M.

Galaxy Digital will contribute another $25M and serve as the investment manager.https://t.co/PqvyLf7b6J

— Sharplink (@Sharplink) May 11, 2026

The Galaxy/Sharplink PRNewswire announcement lays out the planned commitment structure, Galaxy’s role, and the risk disclaimers in detail:

Galaxy Digital Inc. and Sharplink Inc. announced a non-binding memorandum of understanding, subject to definitive documentation, for the formation of the Galaxy Sharplink Onchain Yield Fund, LP. The private vehicle would deploy capital across decentralized finance liquidity protocols and other onchain yield-generating strategies, with Galaxy serving as investment manager. The fund is planned to launch in the coming weeks and receive commitments totaling $125 million, consisting of $100 million from Sharplink’s staked Ethereum treasury and $25 million from Galaxy. The strategy is designed to let Sharplink preserve core Ethereum exposure while putting balance-sheet capital to productive use. Protocol selection, exposure sizing, and ongoing monitoring are governed by Galaxy’s institutional research and risk-management framework. The forward-looking section warns that the fund may not launch on the anticipated timeline or at all, commitments may not be funded, and onchain yield strategies carry risks including smart-contract vulnerabilities, protocol failures, liquidity risks, impermanent loss, governance risk, regulatory uncertainty, counterparty risk, custodial risk, operational risk, and possible losses. (PRNewswire)

The caveats are real. The MOU is non-binding, definitive documents still need to be signed, and the fund may never launch. DeFi yield carries smart-contract risk, impermanent loss, and protocol-level failures. Galaxy’s involvement adds institutional guardrails, but it does not eliminate those risks.

We’re expanding the ways we do this.

Today, we’re announcing plans with @GalaxyHQ to establish the Galaxy and SharpLink Onchain Yield Fund, a ~$125M initiative to deploy capital into onchain opportunities generating risk-managed, ETH-denominated yield.https://t.co/PqvyLf7b6J

— Sharplink (@Sharplink) May 11, 2026

Public-company crypto treasuries have historically meant one thing: buy the asset, hold the asset, report the asset. Sharplink and Galaxy are sketching out something different. If this fund reaches final documentation and goes live, it would represent a public company actively farming yield on its ETH balance sheet under a recognized institutional manager. That model could easily become a template for other ETH-heavy corporate treasuries looking to put idle capital to work onchain. The agreement is preliminary, but the direction is clear.

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