Andreessen Horowitz's Crypto Division Secures $2.2B Fund for Stablecoins and Prediction Markets
The crypto division of Andreessen Horowitz announced its new fund will focus on supporting projects that "people keep using when the hype fades."
Venture capital giant Andreessen Horowitz's cryptocurrency-focused division has successfully secured $2.2 billion in capital for its fifth dedicated fund aimed at supporting crypto-related projects.
According to a Tuesday blog post announcement, a16z Crypto revealed that Crypto Fund 5, its newest fund, will provide backing to founders who are "turning new infrastructure into products people use every day," with a focus on areas such as stablecoins, perpetual futures, prediction markets and tokenized assets.
"Software is getting more complex and harder to trust," wrote a16z Crypto general partners Eddy Lazzarin, Guy Wuollet, Ali Yahya and founder and managing partner Chris Dixon in their blog post announcement.
"The infrastructure the internet runs on is more consolidated than ever. In that environment, the properties that crypto networks were designed to provide become more valuable, not less," the partners further explained.
The launch of a16z's newest fund follows closely after competing venture firm Haun Ventures announced just one day prior that it had successfully raised a $1 billion fund targeting crypto and artificial intelligence investments, indicating that venture capital interest in the cryptocurrency sector continues to remain robust despite the majority of investment capital flowing toward AI-focused ventures.
According to a Crunchbase report published in April, artificial intelligence companies attracted an unprecedented $242 billion in venture capital funding during the first quarter of 2026, with the technology sector commanding 80% of the historic $300 billion in worldwide venture capital investment throughout that quarter.
The size of Crypto Fund 5 represents a decrease compared to a16z Crypto's previous fund, which stood at a record-breaking $4.5 billion when it was launched four years earlier in May 2022, coinciding with the collapse of the Terra blockchain that triggered a domino effect of cryptocurrency company failures and intensified regulatory scrutiny.
According to a16z, the cryptocurrency industry is currently experiencing "one of those quieter moments" within its cyclical pattern, prompting the firm to focus its attention on identifying "what people keep using when the hype fades."
The firm noted that stablecoin adoption "has kept climbing even through downturns," while also observing "meaningful growth" occurring in both crypto perpetual futures markets and prediction markets.
"Traditional assets are starting to move onchain, and onchain finance is being used for assets beyond network tokens," a16z further stated. "A new financial system is taking shape that runs continuously, settles nearly instantly, costs almost nothing, and is open to anyone with internet access."
The venture firm also highlighted that the cryptocurrency industry has benefited from a United States regulatory environment that is "moving in the right direction," citing numerous supportive legislators and White House officials who are working to advance the GENIUS Act, a bill focused on stablecoin regulation, which a16z characterized as "a good example of what thoughtful policy can look like."
"We expect more regulatory progress for the rest of the crypto market through legislation and rulemaking," the firm concluded.