In a significant milestone for the cryptocurrency industry, crypto infrastructure firm Function has successfully closed a $10 million seed round, led by Galaxy Digital (GLXY) with additional participation from Antalpha (ANTA) and Mantle, according to a press release issued on Tuesday.
This fundraising round positions Function, formerly known as Ignition, at the forefront of an emerging initiative focused on unlocking institutional yield opportunities from Bitcoin (BTC), the largest yet most underutilized digital asset in the realm of decentralized finance (DeFi).
Function’s flagship product, FBTC, is a fully reserved and composable representation of Bitcoin that has already achieved impressive traction, boasting a total value locked (TVL) of $1.5 billion.
The company aims to position FBTC as an essential tool for institutions and corporate treasuries seeking to deploy Bitcoin productively, all while ensuring full custodial control and maintaining a 1:1 asset backing.
As momentum around the institutional adoption of Bitcoin builds, it is increasingly recognized not just as a store of value but also as an instrument capable of generating yield.
With the involvement of Mike Novogratz’s Galaxy Digital, Function gains a powerful ally that will significantly enhance FBTC’s institutional reach. Galaxy’s contributions will encompass liquidity provisioning, governance, risk framework design, and strategic oversight.
“By 2026, treating Bitcoin as a passive treasury asset may no longer be sufficient. The new paradigm will involve actively earning yield,” stated Thomas Chen, CEO of Function, in communications shared via email.
Chen elaborated, “We’re transitioning from merely wrapped assets to creating functional infrastructure that is programmable and meets institutional standards, thereby transforming Bitcoin into a productive asset class. Sophisticated allocators will expect their Bitcoin to work as diligently as their cash. Firms that fail to adapt will find themselves at a disadvantage, while forward-thinking companies will thrive in the upcoming era of Bitcoin yield.”
Read more: The Open Platform Becomes First TON Unicorn Following $28.5M Raise
