Galaxy Digital Inc. (NASDAQ: GLXY) and Sharplink Inc. (NASDAQ: SBET) announced a non-binding memorandum of understanding to form the Galaxy Sharplink Onchain Yield Fund, a private investment vehicle targeting decentralized finance liquidity protocols and other onchain yield-generating strategies.

The fund is planned to launch in the coming weeks with $125 million in total commitments. Sharplink will contribute $100 million from its staked Ethereum treasury, while Galaxy will provide $25 million. Galaxy will serve as the fund's investment manager.

The investment strategy aims to allocate capital to blockchain-based financial market opportunities while allowing Sharplink to maintain its core Ethereum exposure. Galaxy will apply its research and risk management framework to protocol selection, exposure sizing, and ongoing monitoring.

"Institutional capital is moving onchain, and the infrastructure to support it has matured to a point where allocators can access yield, liquidity, and risk management with the same rigor they expect in traditional markets," said Mike Novogratz, founder and CEO of Galaxy.

Sharplink CEO Joseph Chalom stated the partnership represents "the clearest expression" of the company's strategy to make its Ethereum holdings productive while maintaining risk management standards.

Galaxy has been deploying capital onchain since 2020 and operates across digital assets trading, advisory, asset management, and data center infrastructure. The company also develops data center facilities, including its 1.6 GW Helios campus in Texas.

Sharplink operates as an institutional-grade Ethereum treasury platform and also runs an online affiliate marketing business. The company was founded in 2019 and is headquartered in Miami, Florida.

The agreement remains subject to definitive documentation, according to the companies' joint statement.