Arc, Canton and Tempo, three blockchains focused on stablecoins and tokenization, have raised more than $1 billion in total, highlighting 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 reportedly raised $300 million at a $2 billion valuation for the Canton blockchain. Tempo, backed by Stripe and Paradigm, had already raised $500 million at a valuation of $5 billion.
In a blog post published Tuesday, Hougan said the fundraising wave reflected three trends: clearer U.S. regulations, growing demand for private blockchain transactions, and growing competition from enterprise-backed crypto networks.
Blockchains have long faced a tradeoff between speed, cost, and security: faster, cheaper networks often compromise on decentralization or resilience, while more secure chains can be slower and more expensive to use.
This tension is particularly important for stablecoins and tokenization, where institutions need transactions to be fast and affordable, but also private, compliant, and secure enough for real-world finance.
Hougan said privacy could become a “killer application” for crypto, as businesses and consumers become less comfortable with fully transparent blockchains like Ethereum and Solana.
“If you are a company that broadcasts every transaction before it is completed, or a worker whose salary 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 in 2025, giving institutions a clearer regulatory basis for investing in crypto infrastructure.
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