Privacy is emerging as a defining blockchain theme for 2026

Public blockchains are radically transparent by design. This transparency enables independent verification of execution and removes the need for trusted intermediaries. However, unfiltered public transparency is not compatible with institutional and corporate activity. Corporates cannot expose cash flows, positions, counterparties, or strategies on a public ledger. What institutions require is not anonymity, but confidentiality with selective, auditable disclosure for regulators and auditors.

Privacy has therefore become one of the last remaining infrastructure bottlenecks to large-scale blockchain adoption. That bottleneck is now being addressed by a new generation of privacy-preserving technologies that maintain onchain verifiability while introducing confidentiality. These systems preserve the core trust guarantees of public blockchains, while shielding sensitive economic data and enabling institutional-grade participation.

One such example is Zama, a Paris-based company employing 37 PhDs which is building a confidentiality layer on top of existing blockchains based on ‘fully homomorphic encryption’ (FHE). FHE makes data private, while maintaining the integrity of that data, allowing smart contracts to operate directly on encrypted data. This enables private execution without sacrificing correctness or verifiability. Zama is one of several companies and approaches that we are following with interest as they are rolling out.

If 2025 was about proving that blockchains can serve large-scale economic activity, one theme that is looking to shape 2026 is doing this in a privacy-preserving manner.

Also this week

• Morgan Stanley files with SEC for spot Bitcoin and Solana ETFs
• Wyoming launches first U.S. state-issued stablecoin
• US bankers warn stablecoin yield workarounds threaten local lending
• Polymarket to provide prediction data to Wall Street Journal
• U.S. Representative seeks prediction market ban for Federal Officials
• Japan's finance minister backs crypto integration across stock exchanges

Relevant financial updates

• Brevis*, a zero-knowledge coprocessor enabling smart contracts to access and compute with historical onchain data from multiple blockchains, had its TGE and is currently trading at a $395mln FDV
• Tres Finance*, a company that offers crypto accounting and treasury services, has been acquired by Fireblocks* for $130mln
• Rain*, a financial technology company offering a financial stack for blockchain-native teams that provides global credit cards and automated accounting with multi-chain capabilities and non-custodial security, has raised $250mln in a Series C funding round with investments from Dragonfly, Galaxy Ventures, Lightspeed Venture Partners, Bessemer Venture Partners, Endeavor Catalyst and 4 others
• BlackOpal, an onchain asset management and payments platform connecting Brazil’s credit card payments market to global capital, has raised $200mln in a Debt Financing funding round with investments from Mars Capital Advisors
• Babylon*, a company that allows Bitcoin owners to stake BTC, enhancing the security and efficiency of Proof-of-stake chains and their associated decentralized applications, has raised $15mln in a Private Token Sale funding round with investments from Andreessen Horowitz
• Ubyx, a clearing system that enables banks, fintechs, and individuals to deposit stablecoins from various issuers and receive full value in existing accounts, has raised an undisclosesd amount in a Strategic funding round with investments from Barclays
• ZenChain, a Layer 1 blockchain that merges Bitcoin’s security with Ethereum‑compatible smart contract functionality to enable cross‑chain asset transfers and decentralized applications, has raised $8.50mln in a funding round with investments from DWF Labs, Genesis Capital and Watermelon Capital
• River, a crypto infrastructure firm building a cross‑chain platform that connects assets, liquidity, and yield, has raised an undisclosed amount with investments from Maelstrom

*Underlying TBV portfolio position | Prices as per 09/01

Interesting things to read

• Acting CFTC Chairman Caroline Pham talks about the shift in US crypto regulation on the Quadrillions podcast
• 6 trends for 2026: Stablecoins, payments, and real-world assets, from our manager a16z

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