Arc, Canton and Tempo, three blockchains focused on stablecoins and tokenization, have collectively raised more than $1 billion, highlighting the growing institutional demand for privacy-focused crypto infrastructure, according to Bitwise CIO Matt Hougan.
Stablecoin issuer Circle (CRCL) recently raised $222 million at a $3 billion valuation for Arc, while Digital Asset is reportedly raising $300 million at a $2 billion valuation for the Canton blockchain. Tempo, backed by Stripe and Paradigm, previously raised $500 million at a $5 billion valuation.
In a blog post on Tuesday, Hougan said the fundraising surge reflects three trends: clearer US regulation, increasing demand for private blockchain transactions and increasing competition from corporate-backed crypto networks.
Blockchains have long faced a trade-off between speed, cost and security: faster, cheaper networks often compromise decentralization or robustness, while more secure chains can be slower and more expensive to use.
That tension is especially important for stablecoins and tokenization, where institutions need transactions to be fast and affordable, but also private, compliant, and secure enough for real-world funding.
Hougan said privacy could emerge as a “killer app” for crypto as businesses and consumers become less comfortable with fully transparent blockchains like Ethereum and Solana.
“If you’re a company that broadcasts every trade before it’s completed, or a worker whose paycheck is visible to anyone with a block explorer, this transparency is a bug, not a feature,” Hougan said.
He added that the fundraising boom also reflects growing confidence after Congress passed the Genius Act of 2025, which gives institutions a clearer regulatory basis for investing in crypto infrastructure.
Read more: ‘Bitcoin transactions can be monitored’: Ray Dalio explains why central banks won’t touch BTC
