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Blockchain Capital, one of the oldest dedicated crypto venture capital firms in the world, is reportedly seeking to raise $700 million through two simultaneous funds, according to a Bloomberg report citing a single unnamed source familiar with the matter. The firm, which manages roughly $2 billion in fee-bearing assets, has not publicly confirmed the fundraise. If completed on schedule, the raise would close sometime between September and October 2026.

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Two Funds, Two Risk Profiles

The capital would be split between a seventh early-stage fund, targeting nascent protocols and experimental infrastructure, and a second growth fund aimed at more mature companies with established revenue. This parallel structure lets Blockchain Capital pursue different risk profiles at the same time: speculative bets on unproven technology alongside later-stage positions in companies approaching liquidity events such as acquisitions or public listings.

The approach mirrors what Andreessen Horowitz's crypto arm (a16z crypto) has done with its own multi-stage vehicles. Fortune and The Block reported in March 2026 that a16z is targeting roughly $2 billion for its fifth crypto fund. Paradigm is also said to be pursuing up to $1.5 billion for a new vehicle spanning crypto and artificial intelligence.

According to The Block, Blockchain Capital has already begun deploying capital ahead of a formal close, a common signal of strong limited partner confidence among top-tier venture firms.

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A Firm With Deep Roots

Founded in 2013 by P. Bart Stephens and W. Bradford Stephens, Blockchain Capital has backed more than 170 companies and projects since inception. Its portfolio includes Coinbase, Kraken, Circle, and Tether, along with OpenSea and prediction market platform Polymarket.

The firm has a notable place in capital markets history. In April 2017, it launched the BCAP security token, widely recognized as the world's first tokenized investment fund. The move preceded what has since become a major institutional focus on tokenized real-world assets.

Blockchain Capital's previous fundraise, Fund V, was announced at $300 million in 2021. The reported $700 million target represents more than double that figure, reflecting both the firm's growth and the broader expansion of institutional crypto capital.

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Deployment Already Underway

Just before the Bloomberg report landed, Blockchain Capital led a $12 million Series A round for Paxos Labs, a DeFi-focused spinoff from stablecoin issuer Paxos. Robot Ventures, Maelstrom, and Uniswap Labs also participated. Bhaumik Kotecha, co-founder of Paxos Labs, described the product's appeal in terms of compliance and developer accessibility. "The tech makes it easier for [customers] to integrate, and they don't have to figure out all the smart contracts themselves," Kotecha told Fortune. "It helps teams express compliance and risk."

The deal may signal where Blockchain Capital sees opportunity for the growth fund: stablecoins, institutional DeFi, and companies building regulated access points for digital assets.

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A Cautious Market Backdrop

The fundraise comes as the broader crypto venture market cools from its 2021 and 2022 highs. Global crypto VC deployment totaled roughly $18.9 billion in 2025 across approximately 1,200 deals, down about 60 percent from deal count in the prior year, according to CoinGabbar's Q1 2026 funding report. The first quarter of 2026 saw around $5 billion deployed, down 15 percent year over year.

Digital asset valuations remain roughly 40 percent below their October 2025 peak. Several VCs speaking to DL News described the current climate with a consistent phrase: "Less hype, more maturity." According to CoinGabbar's Q1 2026 analyst commentary, investors appear to prefer platforms with stronger revenue paths and closer ties to real trading demand.

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What This Means Outside the United States

For emerging markets, a $700 million raise by a marquee US crypto firm carries indirect but meaningful implications. Nigeria has become the most active Web3 market in Africa by several measures. On-chain transaction value in the country reached $92 billion in 2025, up 56 percent year over year. Daily stablecoin peer-to-peer transfer volume hit $48.2 million on centralised exchanges, the highest globally. Nigeria also accounts for 4 percent of all Web3 developers worldwide, with developer headcount growing 36 percent in the past year, according to TechNext24.

Despite that momentum, roughly 90 percent of Nigeria's Web3 funding in 2025 was grant-based rather than equity venture capital, according to data compiled by BitKE. South Asia faces similar constraints, though the nature of the friction varies by country: India contends with unresolved crypto tax policy debates and unclear asset classification, while Pakistan and Bangladesh operate under more restrictive capital controls. This regulatory uncertainty has slowed institutional inflows from Western firms across the region.

Blockchain Capital does not have a publicly stated regional mandate for either fund. But portfolio companies it backs in stablecoins, remittances, and real-world asset tokenization operate in the same infrastructure gaps that African and South Asian markets rely on most heavily. Downstream capital flows and product expansion into those regions remain a possible, if indirect, outcome.

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What Comes Next

The firm has not responded to press inquiries on the record. Until an official close is announced, the $700 million figure should be treated as a reported target from a single anonymous source rather than a confirmed outcome.