Institutional blockchains are once again attracting large capital. Arc, Canton, and Tempo have collectively raised over $1 billion, with their valuations exceeding $10 billion. According to Bitwise Chief Investment Officer Matt Hougan, the market is setting a new trend: privacy may become one of the main use cases for cryptocurrencies.
This is not about the old idea of anonymous coins. The new wave is built around stablecoins, tokenized assets, and corporate settlements, where participants need speed, access control, and protection of commercial data. For large companies, full transparency of public networks is becoming a problem rather than an advantage.
Arc, Canton, and Tempo Raise Over $1 Billion
The main deals are focused around three networks. Circle raised $222 million for Arc at a valuation of about $3 billion. According to market data, Digital Asset is preparing a $300 million round for Canton at a valuation of about $2 billion. Tempo, backed by Stripe and Paradigm, previously raised $500 million at a valuation of about $5 billion.
In total, this shows a sharp increase in interest in infrastructure for regulated finance. Investors are betting not on another universal network, but on blockchains that can serve banks, payment companies, and large corporations. Such capital usually goes where the market expects a long adoption cycle, not short-term hype.
Regulation Opens the Door for Institutions
Hougan links the wave of investments to changes in US regulations. After the GENIUS Act was passed in 2025, the stablecoin market received a clearer legal framework. For large companies, this reduced the risk of entering blockchain infrastructure.
Before that, many institutions approached the segment cautiously. Unclear rules hindered the launch of products, building payment networks, and transferring assets to the blockchain. Now companies have more confidence that stablecoins and tokenized instruments can develop within a regulated system.
Privacy Becomes a Business Requirement
Public blockchains are strong in transparency. But for businesses, this is often inconvenient. If a company makes a large deal, settles with a counterparty, or manages its treasury, an open transaction history can reveal commercially sensitive information.
This is where new demand arises. Corporations need networks where they can maintain verifiability and security, but not disclose every action to the entire market. According to Hougan, privacy is becoming not an additional feature, but a basic condition for real finance to move to the blockchain.
Ethereum and Solana Do Not Solve All Tasks
Ethereum and Solana remain the largest public ecosystems. They are suitable for open markets, decentralized applications, and liquid tokens. But institutional settlements require a different balance between transparency, compliance, and data access.
For businesses, full visibility of operations can create risks. Salaries, trading terms, liquidity movements, and settlements between companies should not always be available through a blockchain explorer. Therefore, the market is starting to look for specialized networks that retain the advantages of blockchain but are adapted to the corporate environment.
Stablecoins Drive Demand for New Networks
Stablecoins have become the main bridge between traditional finance and the crypto market. They are already used for settlements, transfers, and liquidity storage. But the more such operations move to the blockchain, the stronger the privacy issue becomes.
If stablecoins are to serve corporate payments, supply chains, exchange settlements, and tokenized assets, the publicity of all operations will become a limitation. That is why Arc, Canton, and Tempo are trying to take the place of infrastructure for the next stage of the market, where not only fees and speed matter, but also control over data disclosure.
Competition Moves to the Infrastructure Level
The new wave of investments shows a shift in competition. Previously, blockchains competed for users through low fees, fast transactions, and ecosystem grants. Now the battle is for banks, fintech companies, asset managers, and payment networks.
This is a different market. Here, integration with regulations, reliability, privacy, and the ability to handle large capital flows are important. The winner will not necessarily be the most open network, but the one that can provide institutions with a clear and secure environment.
Corporate Blockchains Return in a New Form
The idea of blockchains for business is not new. Previously, many corporate projects looked closed and weakly connected to real liquidity. Now the situation is different: at the center are stablecoins, tokenized assets, and publicly traded companies.
Circle, Stripe, Paradigm, and Digital Asset are no longer working with abstract technology, but with specific financial flows. This makes the new wave of corporate networks more practical. The market is evaluating not just a blockchain, but infrastructure for settlements and tokenization.
What This Means for the Market
Privacy may become one of the key topics of the next stage of crypto industry development. For retail users, it is important as protection of personal finances. For businesses — as a condition for normal work with counterparties, payments, and assets.
Arc, Canton, and Tempo show where capital is shifting. Investors are looking for projects at the intersection of regulation, stablecoins, and corporate settlements. This is no longer a bet on rapid token growth, but a bet on the restructuring of financial infrastructure.
What’s Next?
The next stage will show whether these networks can attract real transactions, not just investments. Valuations above $10 billion look justified only if Arc, Canton, and Tempo become working infrastructure for stablecoins and tokenized markets.
If demand from banks and corporations is confirmed, privacy really could become the new ‘killer app’ for cryptocurrencies. If not, the market will get another wave of expensive infrastructure projects without enough usage. For now, investors are betting on the first scenario.
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