Citi Veteran Launches $1.5B Crypto Fund With Algorand as Strategic Partner

Hivemind Capital Partners, founded by former Citi exec Matt Zhang, announced its inaugural $1.5 billion venture fund to invest in blockchain and digital asset ecosystems. As part of the fund launch, Hivemind has selected layer 1 blockchain Algorand as a strategic partner to provide technology and network ecosystem infrastructure.

New York-based Hivemind plans to use the venture fund to invest in crypto companies and trade digital assets. It will include a dedicated play-to-earn gaming-focused arm headed by former Goldman Sachs analyst Sam Peurifoy, also known by his gaming handle “Das Kapitalist.” Other investment areas of interest include crypto infrastructure, blockchain protocols, open internet, programmable money and virtual worlds.

Zhang previously spent 14 years at Citi, where he most recently was co-head of the structured products trading and solutions division.

“We believe blockchain technology is a paradigm shift, and we are still in the early innings. Our mission is to provide start-to-finish capital and infrastructure solutions to visionary entrepreneurs and category-defining crypto projects,” Zhang said in the press release.

Regarding the hiring of Peurifoy, Zhang said that “Sam brings a unique combination of deep knowledge of the play-to-earn space, close relationship with the community and a real passion for gaming and the metaverse. With Algorand as our first strategic partner, we have a very exciting roadmap on our play-to-earn strategy right out of the gate, and beyond. I think we will do some amazing things together,” Zhang told CoinDesk in an email.

“The launch of Hivemind’s venture represents an exciting new milestone in serious players entering the Algorand and broader blockchain ecosystem. Hivemind will change the way organizations are using blockchain to transform businesses,” Algorand COO W. Sean Ford said in a statement.

Zhang told CoinDesk the fund’s near-term plans will center around hiring. “We are meticulously focused on hiring and growing the team that will bring a decentralized world to reality,” Zhang said.

Crypto funds have raised increasingly huge funds this year as digital asset prices have rallied. Earlier this month, Paradigm, the firm launched by Coinbase co-founder Fred Ehrsam and former Sequoia partner Matt Huang, announced a $2.5 billion crypto fund. That topped the $2.2 billion investment fund announced by Andreessen Horowitz in June as the largest fund in the crypto industry.