Dragonfly Capital Raises $650M Fourth Fund to Lead Crypto’s Shift Toward Financial Infrastructure

TLDR:

• Dragonfly Capital closed its fourth fund at $650M, competing directly with Andreessen Horowitz and Paradigm.
• The firm led Ethena’s $6M seed round in 2023; the stablecoin now holds a $6.3B market capitalization.
• Dragonfly’s strategy targets stablecoins, onchain finance, and tokenized assets over native crypto protocols.
• Partner Haseeb Qureshi says speaking openly in a hype-driven space has been the firm’s greatest superpower.
  

Dragonfly Capital has officially closed its fourth fund at $650 million. The crypto-focused venture firm made the announcement even as the broader blockchain investment sector faces serious headwinds.

The firm continues to focus on financial infrastructure, including stablecoins, onchain finance, and tokenized real-world assets.

This latest raise cements Dragonfly’s place among the top crypto venture firms globally competing with Andreessen Horowitz and Paradigm.

Dragonfly Bets on Finance as Crypto’s Next Frontier

The firm’s strategy has shifted noticeably toward Wall Street-style financial products built on blockchain rails. General partner Rob Hadick, who joined in April 2022 from hedge fund GoldenTree, has been central to that repositioning.

He arrived just as the Terra Luna collapse rocked the market and stayed through the FTX implosion shortly after. Recalling that turbulent period, Hadick said, “I was scared about what was happening to the industry, but I was excited about the opportunity we had, because we still had $500 million to deploy.”

One early product of that vision was Ethena, a synthetic dollar project that most investors rejected following the Terra Luna fallout. Dragonfly led Ethena’s $6 million seed round during the bear market of 2023.

Ethena founder Guy Young recalled that most investors told him, “It’s actually offensive that you’re even saying this after what just happened.”

Dragonfly, however, took a different view. Young credited the firm’s ability to “look at it from first principles” as the reason they moved forward.

Today, Ethena’s flagship stablecoin carries a market cap of roughly $6.3 billion. Franklin Templeton and Fidelity’s venture arm joined a subsequent $100 million round, further validating Dragonfly’s early conviction.

The bet stands as one of the clearest examples of the firm’s contrarian approach during a difficult market period.

A broader shift is now visible across the entire crypto venture space. Partner Tom Schmidt noted that fewer funds are chasing native protocol tokens and more are backing assets tied to real-world instruments.

“This is the biggest meta shift I can feel in my entire time in the industry,” Schmidt said. Hadick added, “A lot of crypto funds are now saying they’re fintech funds, which is what I think we do better than anybody.”

Leadership and Long-Term Vision Drive the Firm Forward

Dragonfly’s current leadership includes four partners with distinct, complementary roles. Haseeb Qureshi serves as the firm’s most visible voice, known for his Chopping Block podcast and direct commentary on Crypto Twitter.

He once nearly secured Polymarket’s seed round in 2020 but passed on matching a competing term sheet. Reflecting on it, Qureshi said plainly, “It was obviously a massive miss on our part, but we had the right idea.” The firm eventually invested at the Series B stage.

The firm has also navigated serious internal and external turbulence. A Department of Justice inquiry surfaced in 2025, tied to Dragonfly’s investment in privacy protocol Tornado Cash.

Prosecutors briefly suggested Schmidt could face criminal charges before the DOJ reversed course. Qureshi maintained that “the investment was never ideological,” and the episode ultimately became a point of credibility within the broader crypto community.

Dragonfly restructured significantly after co-founder Alex Pack departed around 2020. Pack himself acknowledged that he and Feng were “very different culturally,” adding that he spent “a few months helping to hire and train my replacements” before the two parted ways.

The firm also relocated its Asia operations from Beijing to Singapore amid China’s sweeping crypto crackdown, though Schmidt confirmed it still maintains a meaningful regional presence.

With $650 million now secured, Dragonfly enters the next cycle as one of the sector’s most established players. “It’s bizarre to see us now become one of the incumbents,” Qureshi said.

He added that the firm’s willingness to speak directly has been a key differentiator: “In a space that is just completely flooded with bullshit and with fakers and self-promoters, I think that has actually been a superpower.”

The firm is now positioned to shape how blockchain technology continues merging with mainstream financial systems.

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