<h2 id="crypto-news">Crypto News</h2><p>Three institution-focused blockchains, Arc, Canton, and Tempo, have collectively raised more than $1 billion at combined valuations exceeding $10 billion.</p><p>The fundraising wave centers on networks built for #stablecoins, <a href="https://coinmarketcap.com/academy/glossary/tokenize?utm_source=chatgpt.com" rel="noopener noreferrer nofollow">tokenization</a>, and private transaction infrastructure. Bitwise CIO Matt Hougan said the capital reflects a structural shift in how institutions are approaching crypto.</p><p>Circle recently raised $222 million at a $3 billion valuation for Arc, its stablecoin-focused blockchain. 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.</p><h2 id="why-institutions-want-privacy">Why Institutions Want Privacy</h2><p>In a blog post published May 12, Hougan identified three trends behind the fundraising wave. The first is greater regulatory clarity in the US following passage of the GENIUS Act in 2025. The second is rising demand for private, compliant on-chain transactions. The third is growing competition from corporate-backed crypto networks entering the infrastructure market.</p><p>Hougan argued that full transparency, a default feature of public blockchains such as Ethereum (ETH) and Solana (SOL), creates friction for businesses and individuals. "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," he wrote. He said privacy could become the next "killer app" for crypto as institutions move further into on-chain finance.</p><p>Blockchains have historically faced trade-offs between speed, cost, and security. Faster and cheaper networks often make concessions on decentralization or resilience. That tension becomes sharper when the use case involves stablecoins and #tokenized assets, where institutions require both performance and regulatory compliance.</p><p>Hougan also credited the GENIUS Act with accelerating institutional investment into blockchain infrastructure. The legislation gave institutions a clearer regulatory basis for committing capital to crypto networks. He said it reduced the compliance uncertainty that had previously kept many firms on the sidelines.</p><p>Arc, Canton, and Tempo are each designed to serve institutional users who require private, compliant, and high-performance transaction infrastructure. Their combined fundraising total puts their aggregate valuation above $10 billion. That capital concentration signals where institutional conviction is forming within the broader crypto market.</p>

Bitwise CIO Matt Hougan Says Privacy Is Crypto's Next Killer App

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