Larry Fink Reconsiders His Crypto Skepticism as BlackRock’s ETF Soars

Raising venture capital has become more challenging for cryptocurrency startups as investors pull back and tighten their criteria in a cooling market. Sami Start, CEO and founder of crypto infrastructure firm Transak, says the shift marks a clear departure from the previous boom cycle, when funding flowed more freely across the sector.

Building on this, Start noted that venture firms are placing fewer bets and taking a more cautious approach. Rather than backing a wide range of ideas, investors are concentrating on businesses that demonstrate tangible demand and fit within existing financial systems.

The broader downturn, which has erased roughly $2 trillion in market value, has accelerated this change in priorities. Funding is now gravitating toward projects tied to financial connectivity, stablecoin infrastructure, and payment solutions. These areas are viewed as more closely aligned with real-world economic activity, offering clearer paths to adoption and revenue.

Investors are now asking tougher questions about product usage, regulatory compliance, and whether a company can integrate into established financial networks.

Despite the tougher climate, deal activity has not come to a halt. According to data from DeFiLlama, crypto startups collectively secured $197 million in funding last week. Several notable rounds highlight where capital is still flowing.

Startale Labs led the pack with a $63 million Series A round. Based in Singapore, the company develops the Astar Network and is positioning itself as a bridge for enterprises moving into blockchain technology. The round was led by SBI Holdings, highlighting growing collaboration between traditional financial institutions in Asia and blockchain firms. Startale plans to use the funds to enhance its AstarzkEVM platform and expand its Swanky Suite offering.

In Europe, French hardware wallet maker Ledger secured an additional $50 million through a secondary share sale. The funding strengthens its standing as a key provider of self-custody solutions at a time when institutional interest in digital assets continues to grow.

Ledger intends to channel the funds into expanding its enterprise services and advancing the rollout of its Stax device. While software-based custody options have gained traction, the company’s latest raise suggests that hardware wallets remain the preferred choice for safeguarding large holdings.

Meanwhile, Singapore’s Tazapay raised $36 million in a Series B round led by Circle’s venture arm. The investment reflects a strategic effort to expand the use of USDC in cross-border transactions, particularly in emerging markets. Tazapay provides payment infrastructure that connects fiat and crypto systems across 70 countries, enabling businesses to collect and send funds efficiently.

By sidestepping legacy networks like SWIFT, the company is targeting long-standing inefficiencies in global business payments.

These changes could help to deepen the utility of crypto and lift the overall industry’s appeal. In the long term, the entire ecosystem, including firms like Riot Blockchain Inc. (NASDAQ: RIOT), stands to benefit as cryptos become integrated into mainstream finance.

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