Three Privacy-Focused Blockchains Raise More Than $1 Billion Combined

Arc, Canton and Tempo, three blockchains focused on stablecoins and tokenization, have raised more than $1 billion combined at valuations topping $10 billion. The fundraising rounds highlight rising institutional demand for privacy-focused crypto infrastructure.

Stablecoin issuer Circle recently raised $222 million at a $3 billion valuation for Arc. 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.

A Tuesday blog post stated the fundraising wave reflects three trends: clearer U.S. regulation, growing demand for private blockchain transactions and rising competition from corporate-backed crypto networks. The post noted that blockchains have long faced a trade-off between speed, cost and security.

Faster, cheaper networks often make compromises on decentralization or resilience. 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 finance.

The blog post said privacy could emerge as a feature that drives wider adoption for crypto. Businesses and consumers have become less comfortable with fully transparent blockchains like Ethereum and Solana, it added. "If you're a business broadcasting every trade before it's complete, or a worker whose paycheck is visible to anyone with a block explorer, that transparency is a bug, not a feature," the post stated.