Arc, Canton and Tempo Raise Over $1B for Privacy Blockchains

Three privacy-focused blockchain projects — Arc, Canton and Tempo — raised more than $1 billion in recent funding rounds. Arc completed a $222 million token presale at a $3 billion fully diluted valuation. Canton is raising about $300 million at a $2 billion valuation. Tempo secured $500 million at a $5 billion valuation.

Arc’s presale was led by BlackRock and Apollo and is linked to Circle, the issuer of the USDC stablecoin. Arc is being developed as a privacy layer for stablecoin settlement, intended to operate alongside public blockchains rather than relying on them exclusively.

Canton’s round is reported to be led by Andreessen Horowitz, with participation from Goldman Sachs and Citadel. Canton was originally built by Digital Asset Holdings using the DAML smart contract language and focuses on tokenizing institutional assets. The network includes controls that allow counterparties to share transaction details selectively.

Tempo was incubated by Stripe and drew investment from Visa and Deutsche Bank. Stripe acquired the stablecoin platform Bridge last year; Tempo builds on that work and aims to connect privacy features with payments and merchant infrastructure.

Privacy features are central to all three networks. Public blockchains record transactions in open ledgers. Privacy chains use permissioned access and selective disclosure so transaction data can remain private on-chain while still allowing verification when required. Industry participants say those features address concerns from trading desks and corporate treasuries about front-running and exposure of cash management strategies.

Visa operates a stablecoin settlement pilot that is running at an annualized rate of roughly $7 billion across nine blockchains, including Arc and Canton. For context, Visa reported about $15 trillion in payments volume in its most recent fiscal year.

The rounds attracted a mix of backers: asset managers, banks, payment firms and venture capital. Arc’s token presale set a $3 billion fully diluted valuation, a structure that can create dilution risk for buyers who enter after tokens begin trading. Canton and Tempo raised capital in financings structured more like traditional venture rounds.

Two U.S. bills, the GENIUS Act and the STABLE Act, are pending in Congress and address rules for stablecoins. Several firms have invested in privacy-oriented networks while those legislative efforts proceed.

Arc benefits from Circle’s USDC distribution and access to stablecoin liquidity. Canton’s connections to traditional finance include engagements with exchanges and custodians. Tempo’s links to Stripe and Visa target merchant and payment use cases.

Some investors and market participants have questioned whether these networks can generate the transaction volumes and fee revenues needed to support current valuations. Others point to the presence of major financial firms in the rounds as evidence of institutional interest in private settlement infrastructure.