Privacy emerges as crypto’s next 'killer app,' with Arc, Canton and Tempo topping $1 billion in funding
Key takeaways
- Bitwise CIO Matt Hougan said privacy features could become essential as crypto moves into mainstream finance.
- 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.
- In a Tuesday blog post, Hougan said the fundraising wave reflects three trends: clearer U.S. regulation, growing demand for private blockchain transactions and rising competition from corporate-backed crypto networks.
Published May 12, 2026, 4:33 p.m. 2 min read Make preferred on Bitwise CIO Matt Hougan (Suzanne Cordiero/CoinDesk/Shutterstock)What to know: Arc, Canton and Tempo have collectively raised more than $1 billion at valuations topping $10 billion. Bitwise CIO Matt Hougan said privacy features could become essential as crypto moves into mainstream finance. The fundraising boom highlights how U.S. stablecoin legislation is accelerating institutional investment in blockchain infrastructure.Arc, Canton and Tempo, three blockchains focused on stablecoins and tokenization, have raised more than $1 billion combined, highlighting rising 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 Tuesday blog post, Hougan said the fundraising wave reflects three trends: clearer U.S. regulation, growing demand for private blockchain transactions and rising competition from corporate-backed crypto networks.