Fundraising isn’t one thing; it spans institutional capital formation, community grants, and charitable giving. In 2024–2025, three shifts made blockchain funding practical at scale: (1) real institutional products like tokenized money-market funds, (2) clearer rulebooks and sandboxes that let regulated players issue and settle digital securities, and (3) maturing crypto-philanthropy and public-goods mechanisms that prove out transparency and global reach. BlackRock’s on-chain liquidity fund crossing $1B AUM, the UK’s Digital Securities Sandbox going live, and crypto donations exceeding $1B in 2024 are bellwethers for each track.
How blockchain specifically helps fundraising
1) Tokenization lowers friction for institutional raises
Tokenized funds and securities can shorten settlement cycles, enable programmable controls, and expand distribution to qualified investors on public or permissioned chains. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), issued via Securitize in March 2024 and reported above $1B AUM by March 2025 (and later expanded to Solana), is the highest-profile example of institutional capital formation on chain.
2) Sandboxes and rulebooks de-risk digital securities issuance
Regulators now provide supervised paths for DLT issuance and settlement. In the UK, the Bank of England and FCA launched the five-year Digital Securities Sandbox (DSS) with policy and guidance in September 2024, allowing firms to issue, trade, and settle securities on new rails under prudential oversight—directly relevant to fundraises that look like securities offerings. In the EU, MiCA’s phased application and transitional measures give crypto-asset service providers a single market rulebook.
3) Global donor reach and on-chain proof for nonprofits
Crypto donations bring 24/7 cross-border reach and public, verifiable trails. The Giving Block’s 2025 report estimates crypto donations in 2024 likely exceeded $1B, with average gifts materially higher than the prior year among large nonprofits. UNICEF’s CryptoFund shows how a major NGO can invest and disburse in BTC/ETH while publishing transaction proofs for transparency.
4) Community funding and matching at scale (quadratic funding)
Quadratic Funding (pioneered in crypto) amplifies many small donations with matching pools—useful for public-goods grants and ecosystem startups. Gitcoin continues to evolve QF (e.g., “Dynamic QF” and multi-mechanism rounds in 2025) and openly documents rounds, governance, and anti-sybil work—making it a repeatable model for community-driven fundraising.
5) Interoperable rails for future capital flows
To avoid fragmented “islands,” established networks are preparing to bridge tokenized assets and CBDCs into the existing financial system. SWIFT has announced a platform and trials to connect CBDCs and tokenized assets to today’s rails—critical plumbing for widespread institutional fundraising on chain.
6) Built-in compliance and audit trails
The FATF’s June 2025 update to Recommendation 16 tightens transparency for cross-border payments and encourages anti-fraud tooling. Fundraisers using compliant service providers can embed required sender/beneficiary data, lowering regulatory friction and improving donor or investor trust.
Fundraising use cases you can execute in 2025
Tokenized fund or note (institutional/qualified investors)
- Structure: feeder fund, note, or units recorded on chain via a licensed transfer agent/tokenization platform.
- Where it works: under securities regimes, in or alongside DSS-like programs; often private placements.
- Proof point: BUIDL’s growth shows allocator appetite for on-chain cash-like instruments and the operational viability of tokenized shares.
Regulated digital securities pilots (issuers & FMIs)
- Structure: primary issuance and on-chain settlement inside a regulated sandbox.
- Where it works: UK DSS while MiCA harmonizes EU crypto-asset rules; similar pilots appear in other markets.
Crypto-philanthropy for nonprofits
- Structure: direct crypto gifts, donor-advised funds, or dedicated crypto endowments; publish wallet receipts and proof of disbursements.
- Proof point: 2024 crypto donations likely exceeded $1B across the sector; UNICEF’s CryptoFund demonstrates transparent accounting at a major UN agency.
Public-goods and ecosystem grants (quadratic funding)
- Structure: community nominations, identity checks, small-donor rounds with matching pools, and public on-chain reporting.
- Proof point: Gitcoin’s documented 2024–2025 changes (multi-mechanism rounds, Dynamic QF) show continued maturation and fairness tooling.
Step-by-step implementation playbook
- Map your regulatory lane
If your raise confers an investment interest or revenue share, treat it as a securities offering and pick a compliant path (private placement/tokenized units; sandbox pilot; or licensed platform under local law). Use DSS/MiCA references to align your counsel and documentation. - Choose the right issuance/acceptance stack
- Institutional: tokenization provider + transfer agent + KYC/AML, with chain-agnostic distribution and clear secondary-transfer rules.
- Nonprofits: crypto donation processor with auto-receipt, tax acknowledgments, and a transparency page that links to block-explorer proofs. The Giving Block’s sector data helps set expectations with your board.
- Design programmable safeguards
Use vesting, milestone-based releases, or matching pools (for grants) in smart contracts. Gitcoin’s published mechanics are a helpful template for anti-sybil and fairness controls. - Prepare for interoperability
If you expect cross-border participants or bank treasuries, plan for CBDC/tokenized-asset connectivity via established networks (e.g., SWIFT trials). This keeps fiat settlement, cash management, and reporting smooth for institutions. - Embed compliance data at the edge
Align with FATF Rec 16 updates so payer/payee metadata travels with the transaction; document screening and anti-fraud steps to reassure donors and investors.
Risks and how to mitigate them
- Regulatory scope creep
Marketing language can tip an initiative into “securities” territory—work with counsel and, where available, operate inside a sandbox like the UK DSS or within MiCA-aligned workflows. - Fragmented rails and poor UX
Favor platforms integrating with existing banking networks; SWIFT’s CBDC/tokenization bridge aims to reduce fragmentation for mainstream participants. - Transparency without privacy
For sensitive donors or investors, combine public proofs with privacy-preserving, policy-compliant data exchange in line with FATF guidance; publish only what you must.
FAQs
Is tokenization only for big asset managers?
No. Smaller issuers can use licensed tokenization providers and transfer agents to run private placements or pilot issuance in regulated sandboxes; the UK DSS explicitly invites market participants to test DLT for securities.
Do crypto donations really move the needle?
Yes. Sector data indicates 2024 crypto donations likely exceeded $1B, and leading charities increasingly accept crypto—often with larger average gift sizes and global reach.
What’s the simplest community funding model to copy?
Quadratic Funding with a matching pool and identity checks; Gitcoin’s open playbooks and 2025 strategy updates are a practical starting point.
How will banks plug into this?
Interoperability efforts like SWIFT’s CBDC/tokenization platform aim to connect digital assets to existing payments infrastructure, easing treasury and settlement for institutional participants.
