Crypto startups raise $1B+ in 2026 as institutional and bank interest lifts tokenization and custody
Crypto startups have raised over $1 billion in 2026 after investors put $362 million into 14 deals in the third week of January, according to DeFiLlama. Major raises include BitGo’s $213 million custody-focused financing, Superstate’s $83 million Series B led by Bain Capital Crypto and Distributed Global for tokenized U.S. Treasury-based funds, and a $14 million public token sale by Solana-based prediction-market Space. While early-stage venture funding remains active, overall fundraising is down more than 50% versus the same period in 2025. Investors are increasingly selective, favoring infrastructure, institutional custody, RegTech and real-world asset (RWA) tokenization over speculative consumer apps. Separately, traditional finance appears to be edging into crypto: UBS is reportedly preparing to offer Bitcoin and Ether trading to select Swiss private banking clients, with possible expansion to APAC and the U.S. if regulations allow. Market takeaway for traders: continued venture and institutional interest in custody, tokenization and DeFi betting products may boost liquidity and adoption for BTC and ETH over the medium term, while geopolitics and macro volatility keep near-term sentiment cautious. Key SEO keywords: crypto funding, venture capital, custody, tokenization, BTC, ETH.
Bullish
The fundraising focus on custody, RegTech and real-world-asset tokenization, plus large institutional-sized raises (BitGo, Superstate) and reports of UBS preparing BTC/ETH trading, signal growing institutional involvement. For BTC and ETH specifically, greater institutional custody and bank participation typically increase liquidity, reduce sell-side pressure, and improve on-ramps — all bullish for price over the medium term. Short-term impact is likely muted or mixed: overall venture funding is down versus last year and geopolitical/policy uncertainty can damp risk appetite, so price spikes are unlikely solely from these funding headlines. Traders should view this as a constructive, bullish structural development for BTC and ETH over months to quarters, while maintaining caution around macro and geopolitical catalysts that can produce short-term volatility.