CoinDesk
Arc, Canton and Tempo — three blockchains built around stablecoins and tokenization — have collectively raised more than $1 billion at valuations above $10 billion, according to reporting on Bitwise CIO Matt Hougan's latest note. Circle (CRCL) raised $222 million at a $3 billion valuation for Arc, Digital Asset is reportedly raising $300 million at a $2 billion valuation for Canton, and Tempo, backed by Stripe and Paradigm, previously raised $500 million at a $5 billion valuation. The raises land within months of each other and all target the same buyer: institutions that need blockchain rails but cannot operate on fully public ledgers.
Why it matters
Hougan argues privacy could emerge as crypto's first true "killer app" as the sector matures into mainstream finance. His framing is direct: "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 thesis is that the same on-chain visibility that attracted crypto's early crowd becomes a liability when corporates, payroll systems, and treasury operations move on-chain. The fundraising wave, Hougan writes, reflects three converging trends — clearer US regulation, demand for private transactions, and corporate-backed competition to public chains like Ethereum and Solana.
Market impact
The scale of the raises — three chains, $1B+ combined, valuations north of $10B — signals that institutional capital is now pricing privacy infrastructure as a standalone category rather than a feature layer on existing L1s. The timing is anchored to the Genius Act passed by Congress in 2025, which gave institutions clearer regulatory footing to commit capital to blockchain infrastructure. For Ethereum and Solana, the read is competitive: chains that cannot offer selective disclosure or confidential compute risk ceding the institutional tokenization and stablecoin corridors to purpose-built alternatives. Watch whether the next wave of stablecoin issuers and tokenization platforms default to private-by-design chains, and whether public L1s respond with their own privacy or compliance modules.
Frequently asked questions
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Which three blockchains raised more than $1 billion combined?
Arc, Canton and Tempo — three institution-focused blockchains built around stablecoins and tokenization. Circle raised $222M for Arc, Digital Asset is raising $300M for Canton, and Stripe/Paradigm-backed Tempo previously raised $500M.
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What did Bitwise CIO Matt Hougan say about privacy in crypto?
Hougan argued privacy could emerge as crypto's first true killer app as the sector moves into mainstream finance. He said full transparency is a bug for businesses broadcasting trades and workers whose paychecks are visible on a block explorer.
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How much were the valuations for Arc, Canton and Tempo?
Circle's Arc was valued at $3 billion on its $222M raise. Digital Asset's Canton is reportedly raising at a $2 billion valuation. Tempo, backed by Stripe and Paradigm, previously raised at a $5 billion valuation.
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Why is the Genius Act relevant to these fundraising rounds?
The Genius Act, passed by Congress in 2025, gave institutions clearer regulatory footing to invest in blockchain infrastructure. Hougan pointed to it as one of three converging trends driving the fundraising wave.
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What does this mean for Ethereum and Solana?
Public chains like Ethereum and Solana face a competitive test from purpose-built alternatives offering selective disclosure and confidential compute. Institutional tokenization and stablecoin corridors could shift toward chains designed for compliance from day one.
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