0xbow raises $3.5 million seed round for Ethereum Foundation-backed Privacy Pools project

Ethereum-based privateness startup 0xbow has raised a $3.5 million seed spherical led by Starbloom Capital with backing from main enterprise capital corporations like Coinbase Ventures and BOOST VC, in addition to angels together with Balaji Srinivasan, amongst others, in keeping with an announcement on Tuesday.

0xbow is the mission behind Privateness Swimming pools, an necessary a part of the Ethereum Basis Kohaku pockets initiative.

Privateness Swimming pools is a protocol designed to anonymize funds in a compliant method. The mission relies on analysis co-authored by Ethereum founder Vitalik Buterin on Affiliation Units, basically lists that forestall dangerous actors from commingling their funds whereas monitoring for suspicious exercise.

Buterin beforehand competed in 0xbow’s pre-seed spherical in March 2024.

“We’re fixing one thing the business hasn’t found out but: tips on how to present individuals with monetary privateness with out making a haven for criminality,” stated Nathaniel Fried, CEO of 0xbow. “You should not have to decide on between privateness and compliance.”

Since launching on the Ethereum mainnet in March 2025, Privateness Swimming pools has reportedly processed roughly $6 million in transaction quantity for greater than 1,500 customers. The brand new capital will assist the mission develop past the Ethereum mainnet and construct extra options.

0xbow was launched in July assist for Sky’s USDS stablecoin in its first growth into ‘multi-asset privateness swimming pools’. It additionally launched a Twister Money Proof of Affiliation pool that enables customers to do that separate funds of unlawful actions on the legendary Twister Money protocol.

“Privateness instruments must be constructed with compliance in thoughts from day one, not added later,” says Taylor Monahan, a 0xbow guide and safety engineer at MetaMask. “The ASP structure exhibits that you may design for each privateness and accountability on the similar time.”

Co-founded by Ethereum OGs Ameen Soleimani, Nathaniel Fried, and Zak Cole, 0xbow has additionally raised funding from Bankless, Quantity Group, Public Works, and several other angels, together with Frax’s Sam Kazemian and Metamask’s Dan Finlay.

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