A16z Crypto Raises $2.2B for On-Chain Finance

A16z Crypto unveiled Crypto Fund 5, a $2.2 billion fund to invest in startups building payments, financial services, creator platforms and on-chain markets, with emphasis on tokenization and stablecoins. The firm stated the fund will target companies converting decentralized infrastructure into consumer and business products.

The fund will invest across payment rails, financial services built on-chain, creator monetization tools and decentralized infrastructure that supports trading and tokenized assets. A16z Crypto stated it is focused on founders who apply blockchain infrastructure to everyday products.

In a post on social media, Managing Partner Chris Dixon wrote, “Their growth looks less like speculation and more like network adoption: usage compounds because the technology is useful, not because of expectations about price action,” citing stablecoins as an example. He added that on-chain markets, including tokenization, on-chain trading and prediction markets, are developing into continuous, low-cost systems accessible to anyone with internet access. “A new financial system is taking shape that runs continuously, settles nearly instantly, costs almost nothing, and is open to anyone with internet access,” he wrote.

A16z Crypto listed technical properties it considers important: transparency and verifiability of transactions, networks that can grow without centralized gates, economic incentives that align participants, and infrastructure that can operate independently. The firm stated it expects startups to apply those properties to real-world use cases and to work with financial institutions where appropriate.

The announcement comes as the crypto sector shows signs of maturation and public debate over regulation increases. A16z Crypto stated the fund will support projects that convert protocols and primitives into consumer- and business-facing products rather than only early-stage protocol bets.

Crypto Fund 5 follows other large capital commitments in the sector, including Haun Ventures’ recent $1 billion fund aimed at creators and internet infrastructure. A16z Crypto did not release a detailed allocation breakdown but indicated it will back companies across consumer payments, business financial services, creator monetization and markets for tokenized assets.

Andreessen Horowitz, known as A16z, has invested in digital assets and blockchain technology through its crypto arm since the mid-2010s, backing wallets, exchanges, layer-1 and layer-2 protocols and infrastructure projects. With Crypto Fund 5, the firm is directing capital to firms that aim to integrate on-chain tools and stablecoin-based flows into finance and commerce.