Digital Asset Holdings has successfully raised $355 million in a new funding round led by Andreessen Horowitz's main crypto fund. According to reports, this latest round beat the target of $300 million at a valuation near $2 billion that was reported last month. The funding round demonstrates continued investor demand for blockchain infrastructure aimed at regulated finance applications, with the amount raised exceeding initial expectations.
The funding round attracted significant institutional backing from major financial institutions and venture capital firms. Andreessen Horowitz's a16z crypto contributed $100 million to the raise, while other notable backers included Citadel Securities, Apollo, BNP Paribas, CME Ventures, Coinbase Ventures, HSBC, Optiver, SBI Group, ABN Amro, and the Abu Dhabi Investment Authority through a subsidiary. As reported, this institutional backing reflects growing Wall Street confidence in tokenized asset platforms and the broader institutional interest in applying cryptocurrency's underlying technology to conventional financial markets.
The funding will support Canton Network, a public blockchain platform specifically designed for financial institutions and tokenized assets. According to reports, Canton Network has already supported $6 trillion in tokenized issuance, demonstrating significant market adoption. The platform uses a two-tier consensus model designed for horizontal scaling and aims to keep smart contracts interoperable across connected applications.
Canton Network is positioned as a platform for institutions requiring privacy, controls, and smart contract functions. As reported, the network targets banks, asset managers, exchanges, and market makers who often need confidentiality when handling trades, client data, and regulated financial products. The platform's key feature allows users to keep selected information private while supporting shared settlement across different market participants, addressing the needs of traditional financial institutions. This private-by-default approach is designed to make the platform suitable for mainstream financial transactions as Wall Street increasingly explores using blockchain technology for handling traditional assets.
Digital Asset plans to use the proceeds for partnerships, acquisitions, and ecosystem expansion. According to reports, the company has positioned Canton Network as a solution for institutions that need privacy, controls, and smart contract functions. The funding comes at a time when tokenization is becoming central to major financial firms' strategies, with banks and market operators testing bonds, money market funds, collateral, and settlement tools on blockchain rails. The investment is part of a broader trend where traditional financial firms increasingly back blockchain infrastructure built specifically for regulated markets, with recent examples including Stripe's Tempo raising $500 million at a $5 billion valuation and Circle's Arc raising $222 million at a $3 billion valuation.
