Morgan Stanley’s Crypto Boss Jumps Ship—Launches DeFi Hedge Fund to ’Disrupt Wall Street’

Another banking heavyweight ditches tradition for decentralized finance. The ex-Morgan Stanley digital assets chief is betting against his old employer—and the entire legacy system.

Wall Street’s talent drain accelerates: This marks the third major crypto defection from institutional finance this quarter. Sources say the new fund will target algorithmic stablecoins and DAO governance plays.

Bonus jab: Guess those 2% management fees weren’t cutting it after seeing DeFi’s 2000% APYs.

Peel’s Crypto Firm Will be Based in Switzerland

The firm will be headquartered in Zug, Switzerland — often dubbed the country’s “crypto valley.”

The new company will combine asset management and technology services.

It plans to issue and invest in tokenized DeFi assets, such as blockchain-based investment funds, while also building trading infrastructure tailored to institutions entering the space.

As regulation of digital assets continues to evolve, the firm aims to offer tools that help traditional financial firms onboard into crypto more seamlessly.

Andrew Peel exits @MorganStanley to launch a DeFi fund in Switzerland.
Welcome to the builder’s side, Andrew.

Peel’s exit coincides with Morgan Stanley’s broader push into digital assets.

The bank is reportedly planning to roll out crypto trading services on its retail-focused E*Trade platform by next year, following its 2021 move to offer Bitcoin fund access to institutional clients.

Wall Street’s interest in crypto has grown, particularly amid a friendlier policy landscape in the U.S. since Donald Trump’s return to the presidency.

The approval of spot bitcoin ETFs in early 2024 and the growing demand for tokenized money market funds, offered by firms like BlackRock and Franklin Templeton, have added momentum.

In a related development, BNY Mellon confirmed that Caroline Butler, its global head of digital assets, is leaving the bank.

Carolyn Weinberg, BNY’s chief solutions innovation officer, will continue to oversee its digital asset strategy.

Crypto VC Funding Hits $6B in Q1 Despite Fewer Deals

Crypto venture capital deal values surged in Q1 2025, even as the total number of deals declined sharply from a year earlier, according to PitchBook’s latest report.

Only 405 deals were completed in the quarter, down 39.5% from Q1 2024, but total deal value more than doubled to $6 billion — up from $2.6 billion last year and $3 billion in Q4.

The largest share of funding went to crypto financial services firms, including asset managers and exchanges, with $2.55 billion raised across just 16 deals.

Crypto VC funding in Q1 2025 was actually the highest it’s been since Q3 2022. pic.twitter.com/WrPeQgPRiQ

Infrastructure and development firms followed with $955 million in funding across 30 deals, while Web3 startups saw $231 million from 23 deals.

PitchBook’s senior crypto analyst Robert Le noted that capital continues to FLOW into foundational crypto services despite macroeconomic challenges, signaling confidence in the sector’s long-term utility.

He pointed to stable utility rails as a key investment magnet.

Looking ahead, Le highlighted stablecoin issuer Circle’s anticipated IPO as a major test for crypto equity markets.

If Circle is valued above its rumored $4–5 billion range, it could reprice expectations for late-stage crypto startups and attract more capital into infrastructure and payments-focused ventures.