Zerohash Nears Unicorn Status With $100 Million Funding Round

Zerohash, a startup specializing in stablecoin infrastructure, is on the brink of achieving unicorn status with a $100 million funding round. This significant investment is led by Interactive Brokers, a publicly traded online brokerage, and values the company at nearly $1 billion. This latest round follows Zerohash’s Series D funding in 2022, where it raised $105 million from investors including Bain Capital and Point72 Ventures, highlighting a rapid increase in its valuation from $340 million to nearly $1 billion.

Founded in 2017, Zerohash provides the backend infrastructure that enables banks, brokerages, and fintech companies to offer cryptocurrencies, NFTs, and other digital assets to their customers. The company has become a key player in the stablecoin sector, facilitating conversions from cash to stablecoins for clients like fintech giant Stripe through its network of banking relationships. Additionally, Zerohash has collaborated with firms like Securitize to help traditional finance titans, including Blackrock, enter the asset tokenization space.

Zerohash is not the only stablecoin-focused startup attracting significant capital. The investment frenzy has been described as a “stablecoin summer.” In December, BVNK raised $50 million at a valuation of around $750 million, and in March, Mesh announced an $82 million funding round. More recently, Agora, a stablecoin company co-founded by Nick van Eck, secured $50 million in a round led by crypto investor Paradigm. This surge in investment is driven by several factors, including legislative progress in the United States, where the U.S. Senate recently passed a bill to regulate stablecoins. The unprecedented success of pioneering stablecoin issuers, particularly Tether and Circle, has reshaped the financial landscape and ignited a race among companies to launch their own dollar-backed digital assets. With a market capitalization of over $160 billion, Tether’s USDT remains the dominant force, while Circle’s USDC, with a market cap of around $62 billion, solidifies its position as a trusted and regulated digital dollar.

Amid this regulatory push and market boom, major corporations are showing increased interest in the technology. Big tech firms and retailers have reportedly spoken with crypto companies about integrating stablecoins into their payments infrastructure. Unlike companies that issue their own stablecoins, Zerohash serves as the vital “connective tissue” for the ecosystem. Its developer tools allow customers to seamlessly move between cash and stablecoins, positioning the company as a crucial intermediary amidst the skyrocketing demand for stablecoin services.

This funding round reflects the growing interest and confidence in the stablecoin sector, which has been gaining traction as a reliable form of digital currency. Stablecoins, designed to maintain a stable value often pegged to a fiat currency like the US dollar, offer a solution to the volatility issues that plague other cryptocurrencies. Zerohash's technology aims to enhance the efficiency and security of stablecoin transactions, making them more accessible and reliable for users and businesses alike. The company's innovative approach has attracted the attention of major investors, who see the potential for stablecoins to revolutionize the financial landscape. With this new infusion of capital, Zerohash is poised to expand its operations, develop new products, and solidify its position as a leader in the stablecoin infrastructure space. The funding round also reflects the increasing institutional interest in cryptocurrencies, as more traditional financial players look to integrate blockchain technology into their operations. As the demand for stablecoins continues to grow, Zerohash's success serves as a testament to the viability of this emerging asset class. The company's achievements are likely to inspire further innovation and investment in the stablecoin sector, driving its growth and adoption in the years to come.