Gauntlet secures $125 million Series C from SBI Holdings for institutional crypto vaults
New York City-based digital asset risk and optimization firm Gauntlet Networks, Inc. has successfully closed a substantial $125 million Series C financing round for its institutional crypto vaults. Japanese financial conglomerate SBI Holdings, Inc., acting through its U.S. subsidiary SBI Holdings USA, Inc., was the sole investor in this deal, which concluded in June 2026.
This capital infusion will primarily fuel Gauntlet’s global expansion and bolster its institutional crypto vaults, aiming to bridge traditional financial services with the burgeoning digital asset ecosystem.
SBI Holdings invests in digital asset infrastructure
The announcement on July 9, 2026, highlights a deepening commitment from established financial players like SBI Holdings towards the rapidly evolving decentralized finance (DeFi) sector. Gauntlet, founded in 2018 by Co-Founders Tarun Chitra, John Morrow, and Rei Chiang, positions itself as a critical infrastructure provider. It develops sophisticated DeFi risk management and cryptocurrency vault optimization platforms for institutional clients.
SBI Holdings, Inc., a Tokyo-based financial conglomerate, made a strategic decision to exclusively lead Gauntlet’s Series C round. This move underscores its ambition to merge traditional finance with cutting-edge digital infrastructure. The investment was channeled through its U.S. subsidiary, SBI Holdings USA, Inc., reflecting a deliberate focus on the American market.
SBI views digital assets as foundational pillars for the future of modern finance. General Manager Kefei Lin indicated that the Japanese giant aims to increase its investment and operational activities within the U.S. This is largely due to what it perceives as clearer, more pro-crypto regulatory landscapes emerging stateside.
For SBI, this isn’t just an investment; it’s a strategic positioning at the forefront of digital finance convergence. The capital infusion marks Gauntlet’s largest to date, building on a previous $24 million Series B funding round in 2022 led by Ribbit Capital.
Expanding global reach for Gauntlet Networks
This exclusive investment by SBI Holdings is a testament to Gauntlet’s potential to facilitate the institutional adoption of DeFi globally. The capital will enable Gauntlet to accelerate its transformation into a truly global organization. It plans to expand its footprint across diverse financial markets.
This expansion will see Gauntlet broaden its role across traditional capital markets, integrating its DeFi expertise into broader financial ecosystems. The firm aims to build infrastructure across these markets, signifying more than just technical upgrades. It involves a fundamental expansion of its operational capabilities.
Fueling Gauntlet’s technological advancements
The $125 million raised will directly support Gauntlet’s multifaceted growth strategy, with a focus on technological advancement. Gauntlet also plans to grow its global team, adopting an AI-supported approach to ensure operational scale and efficiency. This focus on artificial intelligence suggests an ongoing commitment to leveraging advanced technology for optimizing its services.
Gauntlet’s offerings include quantitative guardrails for institutions moving capital onchain. It provides institutional-grade, risk-adjusted yield vaults, powered by an automated risk engine. This engine continuously analyzes market conditions, protocol risks, liquidity dynamics, and position metrics.
Diversifying stablecoin support and core safety engineering
A significant portion of the new capital will go towards bootstrapping and accelerating new onchain offerings. This includes expanding stablecoin coverage beyond USD and EUR. Gauntlet intends to support currencies like MXN, JPY, and other foreign stablecoins, which is crucial for facilitating broader international participation in DeFi.
Beyond expansion, the funding will also bolster core protocol safety engineering and expand Gauntlet’s automated quantitative modeling infrastructure. These measures are vital for maintaining the integrity and security of the institutional-grade, risk-adjusted yield vaults they offer. Robust safety protocols are non-negotiable in a market where trust is paramount.
The evolving market for institutional digital assets
Gauntlet operates in a sector poised for significant growth: institutional engagement with decentralized finance. The company provides crucial tools as major institutions look to move capital onchain. Their offerings address the complex risks associated with DeFi, making it a more palatable option for traditional financial entities.
The firm’s client roster already includes prominent names in the crypto and traditional finance sectors, such as Coinbase, Paradigm, Apollo, and Circle. These relationships highlight the existing demand for sophisticated risk and optimization solutions within the institutional digital asset market. For example, firms engaged in ETF amendments and custodianship require robust infrastructure as they navigate the evolving regulatory landscape.
Gauntlet was advised exclusively by Financial Technology Partners (FT Partners), a San Francisco-based boutique investment bank, for this Series C transaction. Co-Founder and CTO Rei Chiang has been instrumental in driving the company’s technological vision since its inception in 2018.
From risk optimization to yield curation
Gauntlet initially carved out a niche as a digital asset risk and optimization firm. However, its mission has evolved to include being a cryptocurrency industry yield curator. The company’s ultimate goal is ambitious: to ensure that tokenization and the use of crypto vaults increase the size of the DeFi market faster than overall stablecoin growth globally.
The firm believes that by making onchain finance safer, more efficient, and accessible through sophisticated tools, they can accelerate the mainstream adoption of decentralized technologies. Their work on robust risk models and automated strategies is central to this effort. This paves the way for a future where institutional capital flows seamlessly into DeFi.
Outlook: bridging traditional and decentralized finance
Gauntlet’s successful $125 million Series C round from SBI Holdings marks a significant milestone not just for the company, but for the broader institutional adoption of decentralized finance. The capital infusion will enable Gauntlet to expand its global footprint and enhance its technological capabilities. It will also diversify its stablecoin support, laying the groundwork for more extensive institutional participation.
As traditional financial institutions increasingly explore onchain opportunities, the demand for sophisticated risk management and optimization platforms like Gauntlet’s will only grow. The clear rationale from SBI Holdings, citing more favorable U.S. regulatory environments, points to a continued shift of digital asset innovation and investment towards jurisdictions offering clarity.
This investment serves as a powerful indicator of confidence in the long-term viability and growth of institutional DeFi, signaling a future where digital assets play an ever-larger role in global finance.