ParaFi Capital invests $35M in Solana-based Jupiter protocol
ParaFi Capital has made a $35 million strategic investment in Jupiter, a Solana-based onchain trading and liquidity aggregation protocol, in what the company described as its first external capital raise after years of bootstrapped, profitable growth.
According to the companies, the transaction was structured as a market-priced token purchase with no discount and an extended lockup period. The deal was settled entirely in Jupiter’s JupUSD stablecoin. Terms beyond the $35 million amount were not disclosed.
Jupiter said it has processed more than $1 trillion in trading volume over the past year and expanded from swap routing into perpetuals, lending and stablecoins. The agreement also includes warrants that allow ParaFi Capital to buy additional tokens at higher prices, a structure the firms said is intended to support long-term alignment.
The investment follows recent product launches by Jupiter. In October, the protocol released a beta version of its onchain prediction market built with Kalshi, and in January it introduced JupUSD, a Solana-native, dollar-pegged stablecoin developed with Ethena Labs.
Jupiter’s native token (JUP) rose about 9% over the past 24 hours, according to CoinGecko data.
Decentralized protocols attract VC attention
In 2025 and early 2026, venture capital firms continued to back decentralized protocols through token-based financings.
In October, a16z Crypto invested $50 million in Jito, a Solana-based liquid staking protocol, via a token transaction that provided the firm with an undisclosed allocation of Jito’s native tokens at a discount. In January, Babylon, a decentralized protocol focused on Bitcoin-native staking and lending, raised $15 million from a16z Crypto through the sale of its BABY token, with proceeds intended to advance the protocol’s onchain infrastructure.
Beyond decentralized finance, investors have also funded other categories of decentralized protocols. In September, decentralized science platform Bio Protocol secured $6.9 million from backers including Maelstrom Fund and Animoca Brands to build its AI-native, blockchain-based framework for biomedical research. Last week, Humanity Protocol, a decentralized identity platform, raised $20 million from Pantera Capital and Jump Crypto at a reported $1.1 billion valuation to develop its biometric-based Proof of Humanity onchain identity system.
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