Privacy Becomes Crypto's Next 'Killer App' as Arc, Canton, Tempo Raise $1B+
Arc, Canton, and Tempo, three blockchains focused on stablecoins and tokenization, have collectively raised more than $1 billion at valuations exceeding $10 billion, signaling rising institutional demand for privacy-focused crypto infrastructure, according to Bitwise CIO Matt Hougan. The fundraising wave is driven by three trends: clearer U.S. regulation after the 2025 Genius Act, growing demand for private blockchain transactions, and rising competition from corporate-backed networks. Hougan highlighted that while blockchains traditionally trade off speed, cost, and security, privacy is emerging as a critical feature for mainstream finance, as businesses and consumers find full transparency on networks like Ethereum and Solana undesirable. Stablecoin issuer Circle raised $222 million for Arc, Digital Asset reportedly raised $300 million for Canton, and Tempo previously raised $500 million, underscoring how stablecoin legislation is accelerating institutional investment.
Key facts
- Arc, Canton, Tempo raised $1B+ combined at valuations over $10B.
- Bitwise CIO says privacy could be crypto's next 'killer app'.
- Genius Act 2025 boosted institutional confidence in crypto infrastructure.
- Circle raised $222M for Arc; Digital Asset $300M for Canton; Tempo $500M.
- Transparency on public chains seen as a bug for business transactions.