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

Function, a crypto infrastructure firm formerly known as Ignition, has secured $10 million in seed funding led by Galaxy Digital (TSX: GLXY), with backing from Antalpha and Mantle. The company aims to unlock institutional yield opportunities for bitcoin (BTC), the world’s largest yet underutilized digital asset in decentralized finance (DeFi).

Function’s flagship product, FBTC, is a fully reserved, composable bitcoin representation that has already reached $1.5 billion in total value locked (TVL). FBTC is designed to enable institutions and corporate treasuries to deploy bitcoin productively while retaining full custodial control and 1:1 backing.

Galaxy Digital’s involvement as a lead investor and strategic partner marks a significant step in Function’s institutional push. The firm will provide liquidity, contribute to governance and risk framework design, and offer strategic oversight to scale FBTC across global markets.

CEO Thomas Chen emphasized the shift in how institutions view bitcoin, stating, “By 2026, treating bitcoin as a passive treasury asset may no longer be enough. The new standard will be actively earning yield.” He added that Function is building programmable, institutional-grade infrastructure to turn bitcoin into a productive asset class, with forward-looking allocators poised to outperform.

The seed round comes as institutional interest in bitcoin expands beyond its role as a store of value. Function positions itself at the forefront of this trend by offering tools that enable bitcoin to generate yield—similar to traditional financial assets.

With strong support from Galaxy and others, Function aims to lead the evolution of bitcoin from passive holding to active capital.