- Point72 disclosed a 4 percent stake in Alt5 Sigma, which was worth nearly $26.7 million.
- ExodusPoint joined Point72 in backing Alt5 Sigma as crypto infrastructure grows.
- Alt5 Sigma holds 7.5 percent of WLFI tokens after completing the $1.5 billion raise.
Institutional investors have cautiously approached crypto, yet a growing number are now targeting infrastructure instead of speculative tokens. This shift gained momentum as Alt5 Sigma, a biotech-turned-crypto payments firm, secured $1.5 billion in combined offerings. The transaction attracted participation from hedge fund giants Point72 Asset Management and ExodusPoint Capital Management, showing Wall Street’s entry into regulated crypto brokerage.
The fundraising was made up of a $750 million direct cash raise and a $750M private placement in WLFI tokens from Trump-backed World Liberty Financial. Following the deal, Alt5 Sigma holds about 7.5 percent of the WLFI supply, allocating the funds to treasury reserves, debt management, litigation settlements, and operational expansion. Bloomberg reported that Point72 disclosed a 4 percent stake valued at $26.7 million, while ExodusPoint took a slightly smaller but notable position.
Shares of Alt5 Sigma slipped 10 percent to $5.48 after the announcement, yet the involvement of such hedge funds validated the company’s future. The scale of this dual-structured offering sets a new precedent for crypto brokerages, especially in an industry marked by consolidation and high-profile bankruptcies.
Hedge Fund Entrants Signal Institutional Strategy
As Point72 forays into the Alt5 Sigma space, the fund itself departs its traditional pools of investment, but steers clear of crypto infrastructure. The regulatory filings show that Wall Street is now more open to regulated blockchain services, preferring them over risky or speculative crypto tokens. Funded by Cohen, the firm is known for its aggressive trading strategies and diverse alternative strategies.
On teh other hand, ExodusPoint has also made significant contributions to the digital asset sector and has become one of the fastest-growing hedge funds in recent years. These investments show hedge funds are backing regulated and scalable blockchain platforms, especially as the industry becomes more mature. While crypto markets remain volatile, institutional investors have focused more on infrastructural elements, bridging the gap between traditional finance and compliant digital trading systems.
Meanwhile, these contributions spike attention in the political realm, considering WLFI’s connection with the Trump family. Such connections are likely to draw regulatory attention, and questions may arise about oversight and conflicts of interest. Yet for hedge funds, the focus is given to long-term infrastructure opportunities rather than short-term speculation.
Related: World Liberty Plans Nasdaq-Listed WLFI Token Treasury
Alt5 Sigma’s Push Into Regulated Brokerage
Founded in 2018, Alt5 Sigma provides a full suite of enterprise-grade digital asset services, facilitating OTC trading through ALT5 Prime, custody solutions, payments with ALT5 Pay, and fiat on-off ramps. The company has processed well over $5 billion in transactions, showcasing both operational competence and demand for its services.
Recently, the company, on behalf of Fundamental Interaction, completed an integration of the ALT5 Prime platform to FIX 4.4. According to Investing.com, this makes it possible for FINRA-registered broker-dealers to trade assets such as Bitcoin, Ethereum, and Solana on compliant infrastructures.
With this fresh influx of capital and institutional endorsements, Alt5 Sigma is one of the first publicly listed companies to integrate WLFI into its treasury strategy. This approach meets a growing corporate trend to look beyond Bitcoin, indicating that altcoins might gain some traction for regulated financial treasuries soon.
All in all, Alt5 Sigma’s capital structure, hedge fund participation, and regulatory-oriented platforms pave the way for Wall Street’s strategic foothold in digital brokerage. The venture links finance, politics, and blockchain innovation, reshaping how institutional players engage with custody, settlement, and trading of digital assets.
