CMT Digital, a prominent Chicago-based venture capital firm specializing in digital assets, has officially closed its fourth investment fund, securing $136 million to support early-stage crypto and decentralized finance (DeFi) startups. This milestone underscores the firm’s enduring commitment to the digital asset ecosystem, even as overall venture funding in the crypto space experiences a pronounced contraction.
The newly launched Fund IV reflects a continuation of CMT Digital’s long-term strategy to back foundational technologies that aim to reshape traditional finance. Drawing on its roots in quantitative trading through its parent company, the CMT Group, the venture arm leverages deep market insights and proprietary research to pinpoint infrastructure projects with long-term potential beyond market hype.
Since entering the crypto investment landscape in 2016, CMT Digital has weathered multiple market cycles, accumulating a portfolio of over 200 investments. This experience has shaped a refined investment philosophy that prioritizes durability, scalability, and real-world utility in blockchain-based solutions.
Fund IV is specifically designed to support startups that are building blockchain-native solutions poised to reshape global financial systems. Sam Hallene, a partner at CMT Digital, emphasized that the fund received capital commitments from a mix of institutional investors and family offices. According to Hallene, this demonstrates that despite a broader downturn in venture activity, there remains a solid — albeit more selective — appetite for transformative blockchain projects.
“As the world continues to move on-chain, the most revolutionary ideas are still ahead of us,” Hallene remarked. “With fresh capital, trusted partners, and a proven platform, we’re ready to help the next generation of visionaries build.”
Each successive fund launched by CMT Digital has evolved in focus. The first fund concentrated on establishing basic market access by backing on-ramps like Coinbase and BitGo. Fund II shifted toward core infrastructure, investing in key players such as Consensys and dYdX that build the foundational layers of the blockchain economy. Fund III expanded into consumer-facing applications and use cases beyond finance, supporting projects like Ethena and Sky Mavis, the studio behind Axie Infinity.
Fund IV now aims to go a step further by supporting ventures that seek to “re-architect finance” at a global scale. This includes startups building decentralized systems that could eventually replace or upgrade existing financial infrastructure, making it more transparent, secure, and efficient.
The timing of this fundraise is especially notable given the challenging macroeconomic environment for crypto startups. According to data from Q2 2025, crypto venture capital activity hit a new low, with just $1.97 billion raised across 378 deals — a 59% decline from the previous quarter. This makes the second quarter of 2025 one of the weakest periods for crypto VC funding since late 2020.
Even when discounting outlier investments like a $2 billion sovereign-backed deal involving Binance earlier in the year, the overall funding environment remains tepid. For perspective, Q1 2022 alone saw over $13 billion in venture inflows into the crypto space, highlighting the sharp contrast in investor sentiment.
Still, CMT Digital’s success in locking down a nine-figure fund suggests that serious capital remains available for investors with a long-term view and a clear strategy. It also signals confidence in the future of blockchain infrastructure despite current market headwinds.
As venture capital becomes more selective, firms like CMT Digital are increasingly relying on experience and deep domain expertise to filter through the noise. With a track record spanning nearly a decade and a background in quantitative trading, CMT is uniquely positioned to identify projects that can not only survive but thrive in the evolving digital economy.
Looking ahead, CMT Digital’s Fund IV is expected to focus on several key areas:
1. Decentralized infrastructure – Projects that enable scalable, secure, and composable blockchain networks.
2. Web3 financial rails – Solutions that provide robust, permissionless alternatives to legacy banking systems.
3. Cross-chain interoperability – Technologies that allow seamless communication between different blockchain ecosystems.
4. On-chain identity and compliance – Tools that facilitate secure identity verification and regulatory compliance without compromising decentralization.
5. Tokenized real-world assets – Platforms that bring traditional assets, like real estate or equities, onto blockchain networks through tokenization.
In launching Fund IV, CMT Digital is not only reinforcing its own strategic direction but also sending a broader signal to the market: that innovation in crypto and DeFi is far from over. Instead, the next wave of progress may lie in pragmatic, infrastructure-focused solutions that quietly enable the next generation of global finance.
The fund’s deployment will likely span several years, during which CMT Digital intends to work closely with portfolio companies, providing not only capital but also operational and strategic support. Given the firm’s history and expertise, startups backed by Fund IV can expect more than just funding — they gain access to a network of seasoned professionals and institutional knowledge.
As the crypto industry matures, VC firms that combine sector-specific insights with disciplined investment frameworks will play a crucial role in shaping the trajectory of blockchain innovation. CMT Digital’s latest fund reflects this evolution — a deliberate, research-driven approach aimed at building the backbone of a decentralized future.