Function Raises $10M to Turn Bitcoin into a Yield-Generating Asset

Function, a crypto infrastructure startup, has raised $10 million in a seed funding round to unlock yield opportunities for bitcoin. As reported by CoinDesk, the round was led by Galaxy Digital, with support from Antalpha and Mantle.

This move shows growing interest in making bitcoin more useful,  not just as a store of value, but as a working, income-generating asset for institutions.

Function Wants to Put Bitcoin to Work

Function, formerly known as Ignition, is behind a product called FBTC. It’s a fully reserved version of bitcoin designed to work in DeFi (decentralized finance). What makes FBTC unique is that it lets institutions and corporate treasuries earn yield on bitcoin without giving up control of their crypto.

In simple terms, FBTC lets investors earn passive income while still holding their own bitcoin. It’s built to be secure, transparent, and always backed 1:1 with actual BTC.

The product has already attracted attention. According to Function, FBTC now holds $1.5 billion in total value locked (TVL). That’s a big signal that the market is ready for bitcoin to evolve beyond just “digital gold.”

Galaxy Digital Joins the Mission

One of the most exciting parts of this story is the involvement of Galaxy Digital. Founded by billionaire investor Mike Novogratz, Galaxy brings deep experience in crypto markets. They’re not just investing,  they’re helping build the system.

Galaxy’s role includes:

• Providing liquidity to the FBTC ecosystem
  
• Helping design risk and governance frameworks
  
• Offering strategic advice to help Function scale
  

This backing gives Function the tools and trust needed to attract even more institutional users.

Institutions Want More Than Just Holding

Bitcoin has always been popular with investors, but it’s often used in a passive way. You buy it, you hold it, and you wait. But that’s changing.

Function’s CEO, Thomas Chen, says we’re entering a new era. “By 2026, just holding bitcoin won’t be enough,” he explained. “Smart investors will want their bitcoin to earn yield, just like cash does.”

He believes that as the crypto market matures, institutions will expect their assets to work harder. That’s exactly what Function aims to deliver with FBTC.

Why This Matters for the Future

Bitcoin is still the world’s largest crypto asset. But in DeFi, it’s hardly used, mostly because it wasn’t designed to work in modern financial systems. Function is changing that by offering a product that’s programmable, compliant, and easy to use in yield strategies.

By giving investors a safe way to earn from their BTC, Function is helping push crypto into its next phase,  one where performance and productivity matter just as much as price.

Final Thoughts

With $10 million in fresh funding and Galaxy Digital in its corner, Function is well-positioned to lead the future of bitcoin yield. Its product, FBTC, blends safety, flexibility, and smart design, making it a powerful option for institutions that want to do more with their bitcoin.

As the market moves forward, holding may no longer be enough. The next wave is about making assets work smarter, and Function is building exactly that.