Crypto infrastructure firm Function has closed a $10 million seed round led by Galaxy Digital (GLXY), with participation from Antalpha (ANTA) and Mantle, the company said in a press release on Tuesday.
The round positions Function, formerly known as Ignition, at the forefront of a growing effort to unlock institutional yield opportunities from bitcoin
, which remains the largest yet least-utilized digital asset in decentralized finance (DeFi).
Function’s flagship product, FBTC, a fully reserved and composable bitcoin representation, has already amassed $1.5 billion in total value locked (TVL), the company said.
Function is positioning FBTC as the gateway for institutions and corporate treasuries to productively deploy bitcoin while maintaining full custodial control and 1:1 asset backing.
The firm is entering the market as momentum builds around the institutional adoption of bitcoin, not just as a store of value, but as a yield-generating instrument.
With Mike Novogratz’s Galaxy joining as both an investor and core contributor, Function gains a heavyweight partner in scaling FBTC’s institutional reach. Galaxy’s involvement includes liquidity provisioning, governance and risk framework design, and strategic oversight.
“By 2026, treating bitcoin as a passive treasury asset may no longer be enough. The new standard will be actively earning yield” said Thomas Chen, CEO of Function, in emailed comments.
“We’re evolving from wrapped assets to functional infrastructure that’s programmable and institutional-grade to transform bitcoin into a productive asset class. Sophisticated allocators will demand their bitcoin work as hard as their cash. Those slow to adapt will underperform; forward-looking firms will win the next era of bitcoin yield.” Chen added.
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