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Privacy emerges as crypto’s next ‘killer app,’ with Arc, Canton and Tempo topping $1 billion in funding
New fundraising rounds for three institution-focused blockchains show how regulation, privacy and corporate competition are reshaping crypto infrastructure, according to Bitwise CIO Matt Hougan.
Updated May 12, 2026, 4:37 p.m. Published May 12, 2026, 4:33 p.m. 2 min read
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.
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.
Blockchains have long faced a trade-off between speed, cost and security: faster, cheaper networks often make compromises on decentralization or resilience, while 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.
