Crypto infrastructure startup Zerohash has successfully raised $104 million in its latest funding round, attracting significant investment from renowned financial firms, including Morgan Stanley and SoFi. This Series D funding round was led by Interactive Brokers, a global automated trading firm, and includes strategic investors who are also clients of Zerohash, as disclosed by founder and CEO Edward Woodford in an interview with CNBC.
The recent investment has positioned Zerohash with a valuation of $1 billion. Woodford expressed the company's aim to partner with "the largest, most trusted brands in the world" to serve as a bridge into the evolving landscape of blockchain technology. Additionally, funds managed by Apollo have also participated in this funding round, showcasing a broad spectrum of institutional interest.
Zerohash is part of a growing trend of firms, both publicly traded and privately held, capitalizing on the more favorable regulatory environment for cryptocurrencies following the tenure of President Donald Trump. Under Trump's administration, the government's stance towards crypto shifted from skepticism, as seen during the era of former SEC Chairman Gary Gensler, to a more welcoming approach embracing this nascent technology.
This regulatory shift has led to increased confidence among CEOs of major financial institutions, including Morgan Stanley and Bank of America, who have shown readiness to engage with the cryptocurrency market. SoFi CEO Anthony Noto indicated to CNBC in April that he is prepared to resume crypto trading in light of the regulatory changes.
Founded in 2017, Zerohash specializes in providing banks and fintech firms with the infrastructure needed to offer blockchain-based products across three key areas: crypto trading, stablecoins, and tokenization. Woodford noted that part of the recent funding will be used to accelerate the adoption of these products among a diverse range of customers, many of whom are also investors in the company.
Interactive Brokers has already integrated Zerohash's services for crypto trading and custody and is set to launch a stablecoin product in collaboration with the firm. While Woodford refrained from commenting on whether Morgan Stanley and SoFi are also clients, he hinted that announcements regarding these partnerships are forthcoming. Representatives from both Morgan Stanley and SoFi have declined to comment on the matter.
As Woodford stated, "These groups aren't VCs," implying that there are significant business relationships developing that could lead to exciting announcements in the near future. The continued investment and interest in Zerohash indicate a promising future for the startup in the rapidly evolving world of cryptocurrency infrastructure.
