Digital asset investment manager Psalion has launched its third and largest venture capital fund, introducing a $50 million investment vehicle aimed at supporting the next phase of blockchain adoption. The new fund has been established as a Singapore-domiciled Variable Capital Company (VCC) and will be managed by Conduit Asset Management Pte. Ltd. (CAM), an investment manager licensed and regulated by the Monetary Authority of Singapore (MAS).
The launch marks an expansion of Psalion’s venture capital strategy as the firm seeks to finance early-stage blockchain companies developing technologies that bridge traditional industries with decentralized infrastructure. The investment manager focuses on digital asset venture capital, yield strategies, and digital asset lending, serving institutional investors, family offices, corporate treasuries, asset allocators, and other sophisticated market participants seeking exposure to blockchain-related opportunities through risk-managed investment strategies.
Psalion has launched a $50 million Singapore-based venture fund to support early-stage blockchain companies developing infrastructure and real-world applications that accelerate mainstream adoption of Web3 technologies.
Fund Prioritizes Infrastructure and Real-World Blockchain Adoption
According to the company, the newly established fund will primarily invest in pre-seed and seed-stage startups building blockchain infrastructure and expanding the technology’s use across the real economy. Target investment areas include infrastructure, middleware, trade finance, tokenized real-world assets (RWAs), stablecoins, decentralized finance (DeFi), and consumer-facing applications.
The investment strategy also emphasizes businesses integrating blockchain technology into traditional digital services rather than focusing solely on cryptocurrency-native products. Psalion believes Web3 infrastructure is increasingly becoming an underlying technology layer capable of supporting mainstream financial and commercial applications without requiring end users to interact directly with blockchain systems.
Tim Enneking, Managing Partner of Psalion, said the firm’s investment thesis had evolved beyond viewing cryptocurrency as an isolated sector. He indicated that the company now sees the greatest opportunity in businesses that combine traditional Web2 applications with Web3 infrastructure, allowing conventional digital platforms to operate using blockchain technology behind the scenes.
This approach reflects a broader trend within the blockchain industry, where developers increasingly seek to embed decentralized technologies into existing business models rather than requiring entirely new user experiences.
Firm Maintains Counter-Cyclical Investment Strategy
The latest fund continues a pattern established by Psalion’s previous venture funds, both of which were launched during periods of weaker market conditions. Rather than avoiding market downturns, the company intends to maintain its counter-cyclical investment strategy by identifying promising startups when industry valuations are comparatively lower.
Enneking indicated that challenging market environments often present more attractive investment opportunities because company valuations become more reasonable and entrepreneurs tend to concentrate on building sustainable businesses instead of pursuing short-term market momentum. He also suggested that founders launching projects during downturns are generally more committed to long-term development and innovation.
The fund will concentrate on pre-seed and seed-stage companies across infrastructure, middleware, trade finance, real-world assets, stablecoins, decentralized finance, and consumer applications built on blockchain technology.
By maintaining its investment activity during less favorable market cycles, Psalion aims to identify emerging blockchain companies before broader market recovery increases competition for venture capital funding. The firm believes that disciplined investment during these periods can generate stronger long-term opportunities while supporting entrepreneurs focused on delivering practical blockchain solutions.
Singapore Structure Supports Institutional Participation
The fund’s structure as a Singapore Variable Capital Company reflects the country’s growing role as a regional hub for digital asset investment and regulated financial innovation. Management through a Monetary Authority of Singapore-regulated asset manager is expected to provide institutional investors with an additional layer of governance and regulatory oversight.
By combining a regulated Singapore investment structure with a long-term focus on blockchain infrastructure and real-world adoption, Psalion aims to position the new fund to capitalize on the next generation of enterprise and consumer Web3 innovation.
The launch underscores continued investor interest in blockchain infrastructure despite evolving market conditions. As tokenization, decentralized finance, and digital asset applications continue expanding into traditional industries, venture firms are increasingly directing capital toward technologies that integrate blockchain into everyday financial and commercial operations rather than limiting investments to cryptocurrency-focused businesses alone.