Crypto startup Zerohash has just secured a massive $104 million in funding, backed by some of the biggest names in finance like Morgan Stanley, SoFi, Apollo, and others. But here’s where it gets interesting: this isn’t just another funding round—it signals a major shift in how traditional financial giants are embracing cryptocurrency infrastructure.
Edward Woodford, the founder and CEO of Zerohash, a company specializing in crypto infrastructure, shared insights with CNBC about this latest Series D funding round. Leading the investment was Interactive Brokers, a global leader in automated trading, joined by strategic investors who are also Zerohash’s clients. This round has propelled Zerohash’s valuation to an impressive $1 billion.
Woodford explained, "Our goal was to partner with the largest and most trusted brands worldwide to serve as a bridge into this emerging technology." This approach highlights the startup’s strategy to gain credibility and trust by aligning with established financial institutions.
Funds managed by Apollo also took part in this round, further emphasizing the growing interest from major investment firms in crypto infrastructure.
Zerohash is part of a broader wave of companies—both public and private—that are capitalizing on a more welcoming regulatory climate for cryptocurrencies, especially under the Trump administration. This marks a stark contrast to the previous era under SEC Chairman Gary Gensler, when crypto faced significant skepticism and regulatory hurdles.
Since President Trump took office, there has been a noticeable pivot: financial leaders from Morgan Stanley to Bank of America have publicly expressed confidence in entering the crypto space. For example, SoFi’s CEO Anthony Noto told CNBC in April that the company was ready to reintroduce crypto trading services following the regulatory changes.
Founded in 2017, Zerohash offers banks and fintech companies the tools to provide blockchain-based products across three key areas: crypto trading, stablecoins, and tokenization. Woodford emphasized that part of the new funding will accelerate adoption across all these verticals, targeting a diverse range of customers who are also investors.
Interactive Brokers is already leveraging Zerohash’s platform for crypto trading and custody services and plans to launch a stablecoin product in collaboration with the startup, Woodford revealed.
While Woodford declined to confirm whether Morgan Stanley and SoFi are currently clients, he hinted that official announcements involving these investors are on the horizon. Representatives from Morgan Stanley and SoFi chose not to comment on the matter.
Woodford made a clear distinction: "These investors aren’t traditional venture capitalists. You can expect a few announcements soon involving these partners." This statement suggests a deeper, possibly strategic relationship beyond mere financial investment.
This development raises some compelling questions: Are we witnessing a genuine integration of crypto into mainstream finance, or is this a calculated move by traditional firms to maintain control over emerging technologies? And how will this influence the future regulatory landscape and innovation in the crypto space? Share your thoughts—do you see this as a positive step forward or a potential cause for concern?
