CoinDesk
Galaxy Digital and Sharplink are teaming up to deploy part of Sharplink's staked ETH treasury into decentralized finance, with Galaxy set to manage a newly formed Galaxy Sharplink Onchain Yield Fund seeded by $100 million from Sharplink and $25 million from Galaxy. The vehicle is expected to commence in the coming weeks under a non-binding memorandum of understanding.
Capital will be allocated across DeFi liquidity protocols and other onchain yield strategies, with the structure explicitly designed to preserve Sharplink's core ETH exposure while layering an active yield component onto its balance sheet. Sharplink holds 872,984 ETH according to its first-quarter results and has generated 18,800 ETH in staking rewards since launching its ether treasury strategy in June 2025. The $100 million allocation equals roughly 43,000 ETH at recent prices — a modest share of the stack, but a meaningful one in absolute size.
Why it matters
The deal is a marker for where ETH treasury companies are heading. Sharplink and its peers have spent the last year accumulating spot ETH and earning the native staking yield; this vehicle adds a second, active yield layer on top — DeFi lending, liquidity provisioning, and structured onchain strategies managed by Galaxy — without forcing the firm to sell ETH to chase that return. It is, in effect, a way to convert a passive balance sheet into a working one without disturbing the underlying thesis.
That matters for the broader cohort of public-markets ETH treasuries: the template is replicable. A listed vehicle with a known ETH stack, paired with a regulated asset manager like Galaxy, running a separately managed book of onchain strategies is a structure that can be marketed to LPs, audited, and scaled in ways a single treasury's DeFi allocation cannot.
Market impact
For Galaxy, the fund is a proof point for its institutional onchain yield product at a time when traditional finance is actively looking for managed exposure to DeFi-native returns. For Sharplink, the $100 million is the first concrete capital earmarked for active DeFi deployment — small enough to be exploratory, large enough to be read as a directional statement.
Frequently asked questions
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What is the Galaxy Sharplink Onchain Yield Fund?
It is a newly formed vehicle seeded with $100 million from Sharplink's staked ETH treasury and $25 million from Galaxy Digital, with Galaxy set to manage the capital across DeFi liquidity protocols and onchain yield strategies.
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How much of Sharplink's ETH is being deployed into the fund?
Sharplink is allocating $100 million from its staked ETH treasury. At recent prices that equals roughly 43,000 ETH — a small share of its 872,984 ETH stack, but a meaningful slice in absolute size.
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Does the fund change Sharplink's underlying ETH exposure?
No. The structure is explicitly designed to preserve Sharplink's core ETH exposure while layering an active yield component on top of the balance sheet, with capital deployed into DeFi rather than sold for ETH.
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When does the fund launch?
Galaxy and Sharplink said the vehicle is expected to commence in the coming weeks. The agreement is currently a non-binding memorandum of understanding.
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Why does this matter for other ETH treasury companies?
It establishes a replicable template: a public-markets vehicle with a known ETH stack, paired with a regulated asset manager like Galaxy, running a separately managed book of onchain strategies — auditable and scaleable in ways a single treasury's DeFi allocation typically is not.
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