Gauntlet Secures $125M Investment From SBI Holdings to Expand Institutional DeFi

DeFi risk management and blockchain infrastructure firm Gauntlet has raised $125 million in a Series C funding round led by Japan-based financial services group SBI Holdings, marking the company’s largest financing since it was founded in 2018.

The SBI Holdings investment was completed in June, according to company announcement. Financial terms beyond the funding amount, including Gauntlet’s latest valuation. The company previously raised nearly $24 million in a Series B round in 2022, led by Ribbit Capital, at a reported valuation of approximately $1 billion.

The latest financing comes as institutional investors continue directing capital toward infrastructure companies that support decentralized finance rather than consumer-facing cryptocurrency products. Risk management, tokenized assets, and regulated stablecoin services have become areas of increasing focus as banks and asset managers expand blockchain initiatives.

Funding Will Support Infrastructure and Stablecoin Expansion

Gauntlet said the new capital will be used to expand infrastructure supporting institutional participation in on-chain financial markets.

The company plans to focus on several areas, including:

• Expanding infrastructure designed to connect traditional capital markets with decentralized finance.
• Increasing support for stablecoins beyond U.S. dollar and euro-denominated assets, including additional regional currencies.
• Accelerating development of new on-chain financial products.
• Expanding global operations with greater use of AI-assisted workflows.

Gauntlet currently provides risk modeling and capital optimization services for decentralized finance protocols, fintech firms, stablecoin issuers, and institutional investors. According to the company, its vault ecosystem manages more than $1.5 billion in supplied assets.

Business Strategy Has Shifted Beyond Protocol Risk Analysis

Founded by former quantitative researcher Tarun Chitra, Gauntlet originally specialized in economic modeling and stress testing for decentralized finance protocols, helping developers evaluate risks related to lending markets and digital asset liquidity.

As institutional participation in digital assets has grown, the company has expanded into yield infrastructure, developing quantitative strategies that help allocate capital across DeFi lending and liquidity markets while monitoring portfolio risk.

That shift reflects broader changes within decentralized finance, where institutional investors increasingly favor professionally managed investment infrastructure over governance-driven treasury management models that were more common during DeFi’s earlier growth phase.

Gauntlet’s clients include organizations such as Apollo, Coinbase, and Circle, illustrating the growing demand for institutional-grade risk management tools within blockchain-based financial markets.

Gauntlet Funding History

Since its launch in 2018, Gauntlet has completed several funding rounds backed by leading crypto and venture capital firms, reflecting growing investor confidence in its institutional blockchain infrastructure business.

• July 9, 2026: Raised $125 million in a Series C funding round led by SBI Group, marking the company’s largest financing to date.
• March 14, 2022: Raised $23.8 million in a Series B round at a $1 billion valuation, led by Polychain Capital, with participation from Ribbit Capital and Paradigm.
• June 4, 2021: Secured $13.63 million in a Series A funding round led by Polychain Capital.
• October 8, 2020: Raised $4.3 million in an undisclosed funding round led by Paradigm, with participation from Polychain Capital, Standard Crypto, First Round Capital, IA Ventures, and Miyuki Matsumoto.
• October 25, 2018: Closed a $2.9 million Seed round led by First Round Capital, with backing from Polychain Capital, Coinbase Ventures, Dragonfly, IA Ventures, and Miyuki Matsumoto.

SBI Expands Its Digital Asset Investment Portfolio

The transaction also adds to SBI Holdings’ expanding portfolio of digital asset investments. The Tokyo-listed financial group has invested in several blockchain and crypto companies over recent years, including Ripple, Circle, and decentralized lending protocol Morpho. SBI has also outlined plans to introduce an SBI Holdings stablecoin, a yen-denominated digital asset, and expand digital asset investment products as regulatory frameworks continue to develop in Japan and other markets.

The investment aligns with a broader trend of traditional financial institutions increasing exposure to blockchain infrastructure while regulatory clarity improves across major jurisdictions. The move also comes as SBI to Acquire Bitbank has further highlighted the company’s expanding commitment to digital asset infrastructure and the broader crypto ecosystem.

Institutional Investment Continues to Favor Market Infrastructure

Gauntlet’s funding comes during a period of selective venture investment across the cryptocurrency industry. Although overall crypto venture activity remains below the highs recorded during the previous market cycle, companies developing infrastructure for institutional adoption continue attracting significant capital.

Market participants have increasingly shifted their attention toward businesses supporting tokenization, stablecoin issuance, custody, compliance, settlement, and risk management as financial institutions explore blockchain-based services.

The funding is expected to strengthen Gauntlet’s position within that segment as institutions seek technology providers capable of supporting larger volumes of on-chain capital while managing financial and operational risks across decentralized markets.