Key Takeaways
- Gauntlet Networks raised $125 million in Series C funding led by SBI Holdings to expand institutional DeFi vault infrastructure globally
- The company now curates over $1.5 billion in supplied assets across its vaults and integrates with more than 150 FinTechs and institutions
- SBI Holdings' involvement signals Japanese and Asian institutional interest in DeFi risk management infrastructure
Gauntlet Networks, a DeFi risk management and optimization firm, closed a $125 million Series C funding round led by SBI Holdings. The capital will fuel global expansion of its institutional crypto vault infrastructure, which currently manages over $1.5 billion in supplied assets across more than 150 integrations with financial institutions and FinTechs.
What Gauntlet does and why institutions care
Gauntlet has operated in decentralized finance since 2018. The company's core business is yield curation, helping capital allocators, FinTechs, financial institutions, and stablecoin issuers deploy capital on-chain through risk-managed vaults. Think of it as a sophisticated risk-adjusted return optimizer for institutions that want DeFi exposure without building the infrastructure themselves.
The vaults are smart contract-based investment vehicles that automatically allocate capital across DeFi protocols based on Gauntlet's proprietary risk models. In June 2026, the company announced its risk-tiered curated vaults on Morpho became accessible through Elwood, an institutional operating system for 24/7 markets.
SBI Holdings leads the round with global ambitions
SBI Holdings, one of Japan's largest financial services conglomerates, led the round through its U.S. subsidiary. The partnership is explicitly designed to expand Gauntlet's coverage across Japan, Asia, and global markets.
“The advanced risk management and optimization technologies possessed by Gauntlet will be indispensable functions in our goal to popularize digital assets.”
— Yoshitaka Kitao, Representative Director, Chairman and President of SBI Holdings
Kitao also referenced the GENIUS Act and CLARITY Act, suggesting regulatory clarity in the U.S. is making institutional DeFi infrastructure investments more attractive. SBI's international reach will help Gauntlet scale beyond its current North American and European focus.
The valuation jump from 2022
This Series C comes about four and a half years after Gauntlet's previous funding round in March 2022, when the company raised $23.8 million at a $1 billion valuation. The new round suggests significant growth in both the company's operations and investor appetite for institutional DeFi infrastructure.
Gauntlet CEO and co-founder Tarun Chitra drew a comparison to ETFs in his announcement.
“Vaults have proven themselves to be the next major revolution in financial markets. Much like ETFs increased equity participation in the U.S. equities market, we believe tokenization and vaults to increase the size of the DeFi market faster than overall stablecoin growth in the next few years.”
— Tarun Chitra, Co-Founder and CEO of Gauntlet
Where the money goes
Gauntlet plans to use the $125 million across three priorities. First, scaling the infrastructure that broadens its role across traditional capital markets. Second, growing its global team. Third, bootstrapping and accelerating new on-chain offerings.
The expansion into traditional capital markets is notable. Gauntlet started as a DeFi-native firm, but this funding signals ambitions to become a bridge between traditional finance and on-chain infrastructure.
Logicity's Take
Gauntlet's positioning matters more than the funding size. The company is betting that institutional capital wants DeFi yields but not DeFi complexity. That's a reasonable bet, but execution depends on two things: maintaining vault performance through volatile markets, and convincing compliance teams that Gauntlet's risk models meet institutional standards. SBI's involvement is a strong signal, the firm doesn't invest casually in crypto infrastructure. For fintech teams building adjacent products, Gauntlet's vault API integrations could become a standard interface for institutional DeFi exposure.
Competitive landscape in institutional DeFi
Gauntlet isn't alone in pursuing institutional DeFi infrastructure. Firms like Chaos Labs, Credmark, and BlockAnalitica also provide risk management services to DeFi protocols. Custody solutions from Fireblocks and Anchorage compete for the same institutional clients, though from a different angle.
What differentiates Gauntlet is its vault curation model. Rather than just providing risk data, it actively manages capital allocation across protocols. That's a more direct value proposition for institutions that want exposure without hiring DeFi specialists.
Frequently Asked Questions
What does Gauntlet Networks do?
Gauntlet is a DeFi risk management firm that operates curated vaults for institutional investors. These vaults automatically allocate capital across decentralized finance protocols based on Gauntlet's risk models, managing over $1.5 billion in supplied assets.
Who led Gauntlet's $125 million Series C?
SBI Holdings, one of Japan's largest financial services conglomerates, led the round through its U.S. subsidiary SBI Holdings USA.
How long has Gauntlet been in DeFi?
Gauntlet has operated in decentralized finance since 2018, making it one of the longer-tenured institutional-focused DeFi firms.
What will Gauntlet use the funding for?
The company plans to scale infrastructure for traditional capital markets, expand its global team, and develop new on-chain offerings.
Need Help Implementing This?
If your fintech team is exploring institutional DeFi integrations or risk management infrastructure, reach out to Logicity for analysis on vendor selection and implementation strategies.
Source: PYMNTS | / PYMNTS
Manaal Khan
Tech & Innovation Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
