Crypto startups raised $11.2 billion across 377 disclosed funding rounds in the first half of 2026, with capital overwhelmingly concentrated in regulated businesses, according to research by Dubai-based crypto lawyer Irina Heaver and NeosLegal.
Payments and stablecoins led with $3.7 billion, followed by prediction markets at $2 billion and exchanges and trading platforms at $1.7 billion. Major deals included Kalshi’s $1 billion raise, Polymarket securing $600 million from NYSE owner ICE, and a $355 million round for Canton Network backed by Abu Dhabi’s ADIA, a16z, Apollo and HSBC.
Traditional financial giants including BlackRock, Goldman Sachs, HSBC, BNP Paribas, Citadel and Nasdaq also invested in regulated crypto companies. Mastercard separately agreed to acquire stablecoin payments firm BVNK for $1.8 billion.
Investors increasingly view regulatory licenses as competitive assets because obtaining approvals such as VARA licenses or MiCA authorization can take years and cost millions of dollars.
However, industry executives cautioned that the trend does not necessarily mean permissionless crypto is disappearing. Bitget CEO Gracy Chen noted that retail users continue to generate substantial activity outside the regulated businesses attracting institutional capital.
The data suggests institutional crypto investment is increasingly shifting toward licensed companies with established revenue models, regulatory approval and stronger barriers to entry.
Payments and stablecoins led with $3.7 billion, followed by prediction markets at $2 billion and exchanges and trading platforms at $1.7 billion. Major deals included Kalshi’s $1 billion raise, Polymarket securing $600 million from NYSE owner ICE, and a $355 million round for Canton Network backed by Abu Dhabi’s ADIA, a16z, Apollo and HSBC.
Traditional financial giants including BlackRock, Goldman Sachs, HSBC, BNP Paribas, Citadel and Nasdaq also invested in regulated crypto companies. Mastercard separately agreed to acquire stablecoin payments firm BVNK for $1.8 billion.
Investors increasingly view regulatory licenses as competitive assets because obtaining approvals such as VARA licenses or MiCA authorization can take years and cost millions of dollars.
However, industry executives cautioned that the trend does not necessarily mean permissionless crypto is disappearing. Bitget CEO Gracy Chen noted that retail users continue to generate substantial activity outside the regulated businesses attracting institutional capital.
The data suggests institutional crypto investment is increasingly shifting toward licensed companies with established revenue models, regulatory approval and stronger barriers to entry.