In the first half of 2026, $11.2 billion was raised in the crypto industry, with no funds directed toward permissionless experiments. Instead, capital flowed into regulated sectors like payments, stablecoins, prediction markets, and exchanges, according to data collected by Dubai-based NeosLegal. Major institutions such as BlackRock, Goldman Sachs, and Mastercard invested in regulated projects, signaling a shift away from the industry’s original permissionless ethos.
The data highlights a marked departure from earlier years, with $3.7 billion raised in payments and stablecoins, $2 billion in prediction markets, and $1.7 billion in crypto exchanges and trading platforms. Kalshi, a prediction market platform, secured $1 billion in May 2026, while Polymarket raised $600 million. Intercontinental Exchange (ICE), owner of the New York Stock Exchange, invested in Polymarket, and Mastercard acquired stablecoin payments company BVNK for $1.8 billion.
Irina Heaver, founder of NeosLegal, noted that the industry was “born on a single promise: permissionless,” but added that “the money has stopped chasing permissionless. It is chasing regulated businesses now.” Rob Hadick of Dragonfly said the funding environment reflects the industry’s maturity, while Vineet Budki of Sigma Capital stressed that licensing has become a key factor in business valuation.
ADIA, Abu Dhabi’s investment authority, backed a $355 million institutional blockchain round in Canton Network, illustrating growing institutional confidence. However, Gracy Chen, CEO of Bitget, pointed out discrepancies between funding trends and retail user activity, noting that 95% of tokenized equities volume on her exchange comes from individual traders.
Heaver’s analysis excludes undisclosed funding rounds, potentially understating activity, while Budki cautioned that the shift is a “revenue trade,” not solely driven by regulation. The six-month period is described as a “snapshot,” with Budki suggesting longer-term data would better reflect market dynamics.
Written by Oliver Grant
Markets Desk
