Function raises $10M seed round led by Galaxy to launch first fully reserved, composable Bitcoin yield product

Crypto infrastructure firm Function has secured $10 million in seed funding to scale FBTC, its fully reserved Bitcoin product, amid rising demand for BTC-based yield solutions.

Crypto infrastructure firm Function, previously known as Ignition, has successfully raised $10 million in a seed funding round led by Galaxy Digital, whose support also extends to liquidity provisioning, governance, risk management, and strategic guidance. The round also saw participation from Antalpha and Mantle.

This funding is primarily aimed at further developing and scaling Function’s flagship product FBTC — a fully reserved, composable Bitcoin (BTC) representation designed to help institutions and corporate treasuries deploy Bitcoin productively while maintaining full custodial control and 1:1 asset backing.

The company announced that FBTC had already accumulated $1.5 billion in total value locked, positioning it as a major player in institutional Bitcoin yield solutions.

This funding and product launch come amid a broader industry trend where Bitcoin is evolving from a passive store of value into an active, yield-generating asset. Another notable example is Babylon Genesis, a Bitcoin staking protocol, which is building solutions that enable Bitcoin holders to earn yield through Bitcoin multi-network staking and DeFi applications.

GOAT Network adds further momentum to this shift with the recent launch of its Bitcoin Yield Dashboard, offering multiple non-custodial yield products directly tied to BTC.

“By 2026, treating bitcoin as a passive treasury asset may no longer be enough. The new standard will be actively earning yield” said Thomas Chen, CEO of Function, in emailed comments to Coindesk.