Psalion Launches $50M Fund III to Back Blockchain's Real-Economy Wave
TL;DR
Singapore-based digital asset manager Psalion has launched its third and largest venture fund to date, a $50 million vehicle aimed at backing pre-seed and seed-stage blockchain startups building at the intersection of crypto infrastructure and the traditional economy — think trade finance, real-world assets (RWA), stablecoins, and DeFi rails that consumer and enterprise businesses can actually plug into. The fund is structured as a Singapore-domiciled Variable Capital Company managed by MAS-licensed Conduit Asset Management, and it made its first move immediately, co-leading a $4 million round in commerce platform Beezie alongside its announcement. It matters because it's a rare crypto-native VC willing to say publicly that it's raising and deploying into a down market on purpose, at a moment when a lot of Web3-focused capital has either gone quiet or pivoted entirely to AI infrastructure.
Key Takeaways
This is a countercyclical bet, explicitly. Managing Partner Timothy Enneking said both of Psalion's prior funds also launched in down markets, and the firm has "no intention of changing that habit." That's a specific, testable claim about the firm's playbook — it wants to buy blockchain exposure when valuations are depressed and only the committed founders remain, not when token prices are euphoric.
The thesis is "web2 businesses on web3 rails," not crypto-native speculation. Enneking's framing — "crypto was the thesis, the traditional financial system was the antithesis, what we're investing in is the synthesis" — signals Psalion wants infrastructure and RWA plays that make blockchain invisible to end users, closer to how AWS made cloud infrastructure invisible, rather than another round of consumer crypto speculation.
The immediate Beezie deal is a signal of deployment speed, not just fund size. Announcing a $4M co-lead investment in the same news cycle as the fund launch tells LPs and founders that capital is already moving, which matters in a fundraising environment where "dry powder" claims are common and fast, credible deployment is not.
Psalion's structure is unusually institutional for a crypto-native shop. Running the fund through a MAS-regulated Variable Capital Company under Conduit Asset Management, and restricting the vehicle to accredited and institutional investors, is a deliberate signal to family offices and institutions who got burned by less-regulated crypto vehicles in prior cycles.
Fund Overview
Fund Name: Psalion VC Fund III (unnamed beyond "Fund III" in public materials)
Fund Size: $50 million — Psalion's largest fund to date
Stage: Pre-seed and seed
Check Size: Not publicly disclosed; the fund's first disclosed deployment was a $4 million co-led round in Beezie
Geography: Global, with a Singapore domicile; prior funds show meaningful concentration in Europe and North America with a growing Asia footprint
Focus: Blockchain infrastructure, middleware, trade finance, real-world assets (RWA), stablecoins, and DeFi — specifically where blockchain rails support real-economy and consumer use cases rather than purely crypto-native speculation
Key LPs: Not publicly disclosed; the fund is limited to accredited and institutional investors under Singapore's Securities and Futures Act
Why This Fund Matters
Crypto VC has had an uneven few years. A wave of 2021-2022 vintage funds either wrote down badly or quietly stopped deploying, and a meaningful share of the capital that stayed active rotated toward AI infrastructure instead, chasing the more obviously investable narrative. Against that backdrop, a firm publicly committing $50 million to blockchain-specific pre-seed and seed deals — and stating outright that it prefers to do so in down markets — is a useful data point on where genuine conviction still exists in the category.
Psalion's own history gives that claim some weight. The firm's earlier vehicles built a 40+ company portfolio spanning infrastructure names like Solana, Chainlink, Polkadot, and VeChain, DeFi protocols like Aave, Uniswap, Curve, and Sushi, and a growing Fund II cohort in RWA and infrastructure (Brickken, Bitbond, STS Digital, Arkis). That's a portfolio built across at least two full crypto cycles, which is a meaningfully different résumé than a first-time crypto fund raising into whatever the current narrative happens to be.
The regulatory structure is worth dwelling on. Running Fund III as a Singapore VCC under a MAS-licensed manager, restricted to accredited and institutional investors, is the kind of wrapper that family offices and institutional allocators increasingly require before they'll touch digital asset exposure at all. It's a meaningfully higher bar than the SPV-and-a-Telegram-group structures that defined a lot of 2021-era crypto fund formation, and it reflects where institutional crypto capital has been heading for the past two years: fewer, better-regulated vehicles rather than a proliferation of loosely structured funds.
The thesis itself — RWA, trade finance, stablecoins, DeFi rails for consumer and enterprise use cases — also lines up with where genuine transaction volume has actually been growing in crypto over the past 18 months, as opposed to where speculative trading volume has been concentrated. Stablecoin settlement volume and tokenized real-world assets have been among the few crypto categories showing real usage growth independent of token price cycles, so Psalion's stated focus is more defensible than a generic "we invest in Web3" mandate would be.
The Team
Psalion is led by Managing Partner Timothy Enneking, a 35-year finance and asset management veteran who has managed crypto vehicles across multiple cycles, including what the firm describes as the then all-time best-performing fund (Bitcoin Fund) and fund-of-funds in their respective years, and who previously founded and chaired the asset manager behind Tera Capital Fund, one of the earliest crypto trading funds. Enneking also manages Crypto Asset Fund and launched the Crypto30 index. Psalion's board also includes Julien Jost and Loan Venkatapen. The broader team is run day-to-day by Adam Kovacs as Investment Director, with Mark Torelli as Finance Director and a dedicated compliance function (Nada Abu-Qaoud, Head of Regulatory Compliance; Todd Enneking, AMLRO; Brenden Tacon, Deputy AMLRO) that's larger, proportionally, than most seed-stage VC firms carry — another marker of the firm's institutional-first positioning.
Early Portfolio
Psalion's Fund I and Fund II portfolios, published on the firm's own site, span 42 companies including infrastructure plays (Solana, Chainlink, Polkadot, Celo, VeChain), DeFi protocols (Aave, Uniswap, Curve, Sushi, Arcadia), and a growing RWA and infrastructure cohort in Fund II (Brickken, Bitbond, STS Digital, Arkis, Utila). Fund III's first disclosed move was a $4 million co-led round in Beezie, a commerce platform the firm says has driven more than $170 million in gross merchandise value and surpassed $85 million in year-to-date revenue with 30,000+ active users since January 2026.
What This Means for Founders
If you're building blockchain infrastructure, RWA tooling, stablecoin rails, or DeFi products aimed at bringing real-economy transaction volume onto blockchain — rather than another purely crypto-native trading or speculation product — Psalion is now writing pre-seed and seed checks with $50 million behind it and a stated preference for exactly this kind of "web2 business, web3 rails" positioning. The firm's own framing suggests they want founders who can articulate a real-economy use case a non-crypto-native customer would actually adopt.
Founders should also weigh what Psalion brings beyond capital: a 40+ company portfolio built across multiple crypto cycles, a MAS-regulated institutional structure that can help with credibility in fundraising conversations with more conservative follow-on investors, and a management team with direct experience running crypto vehicles through both bull and bear markets — which matters for founders who need an investor that won't panic or disappear when token markets turn.
Fund Momentum Take
We think the most interesting thing about this fund isn't the size, it's the timing and the explicit countercyclical framing. Most VCs claim to buy low and avoid herd behavior; few actually put that in a press release as a stated firm policy backed by two prior fund vintages. If Psalion's Fund I and Fund II performance data eventually gets published in more detail, this fund becomes a genuinely useful test case for whether "invest in crypto during down markets" is a repeatable edge or survivorship bias dressed up as strategy.
The risk is straightforward: crypto VC returns are still overwhelmingly driven by token price beta rather than company-specific execution, and a fund this size deploying into pre-seed and seed blockchain companies is making a multi-year bet on both company quality and a market cycle it can't control. The firm's RWA and stablecoin tilt is a reasonable hedge against pure speculation risk, but it's not immunity from a broader crypto winter if one arrives before this vintage matures. We'd also note that LP identities weren't disclosed in the announcement — worth asking about when evaluating how institutional this "institutional-level" fund really is in practice.
Our take: Psalion's institutional wrapper and multi-cycle track record make it one of the more credible crypto-native funds raising right now, and the RWA/stablecoin/trade-finance thesis is well-timed to where real usage is growing. Founders building genuine infrastructure rather than speculative products should have this fund on their list.
Frequently Asked Questions
How large is Psalion's new fund?
Fund III is a $50 million vehicle, described by Psalion as its largest and third venture fund to date.
What does Psalion Fund III invest in?
The fund targets pre-seed and seed-stage blockchain companies in infrastructure, middleware, trade finance, real-world assets (RWA), stablecoins, and DeFi, with an emphasis on use cases that bring real-economy and consumer activity onto blockchain rails.
Who runs Psalion?
Timothy Enneking is Managing Partner, supported by a board including Julien Jost and Loan Venkatapen, with Adam Kovacs as Investment Director and Mark Torelli as Finance Director.
How is the fund structured and regulated?
The fund is a Singapore-domiciled Variable Capital Company managed by Conduit Asset Management Pte. Ltd., which is licensed and regulated by the Monetary Authority of Singapore. It's available only to accredited and institutional investors under Singapore's Securities and Futures Act.
What has Psalion invested in so far?
Psalion's prior two funds back a 40+ company portfolio including Solana, Chainlink, Aave, Uniswap, Polkadot, and VeChain. Fund III's first disclosed investment was a $4 million co-led round in commerce platform Beezie.
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