Crypto startup Zerohash raises $104 million from Morgan Stanley, SoFi, Apollo and others
News Summary
Zerohash, a crypto infrastructure firm, has successfully raised $104 million in a Series D funding round, valuing the company at $1 billion. The round was led by Interactive Brokers and included strategic investors such as Morgan Stanley, SoFi, and funds managed by Apollo. Edward Woodford, founder and CEO of Zerohash, stated that the objective was to attract "the largest, most trusted brands in the world" to bridge into this new technology. The capital will accelerate the adoption of its blockchain-based products across three verticals: crypto trading, stablecoins, and tokenization. Interactive Brokers is already a Zerohash client and is set to launch a stablecoin product with the firm. Woodford hinted that Morgan Stanley and SoFi are also expected to become clients, with announcements anticipated. This funding occurs amid a more favorable cryptocurrency regulatory environment under President Donald Trump's administration, which has encouraged major financial firms to re-engage with the crypto market.
Background
Zerohash, established in 2017, provides critical infrastructure for banks and fintech firms, enabling them to offer blockchain-based products in three key areas: crypto trading, stablecoins, and tokenization services. The regulatory landscape for cryptocurrencies in the United States has undergone a significant shift since Donald Trump's re-election as President in 2025. The administration's stance has moved from being highly skeptical under former SEC Chairman Gary Gensler to actively embracing crypto as a nascent technology. This policy pivot has encouraged major financial institutions, including Morgan Stanley and Bank of America, to express confidence in engaging with the crypto sector.
In-Depth AI Insights
What are the true strategic motivations behind major financial institutions investing in Zerohash? - Beyond the stated embrace of emerging technology, the deeper motivation lies in Zerohash's strategic value as an infrastructure provider. It enables traditional financial institutions to enter the crypto market with minimal in-house development costs and regulatory risk. - This isn't merely venture capital; it's a front-end investment to leverage Zerohash's platform, rapidly deploy their own branded crypto products, and capture market share, especially given the Trump administration's clear support for crypto innovation. - The investment signals a "partnership-first" approach, securing influence over Zerohash's future development and technological standards, and locking in critical back-end support. What does the shift in the U.S. regulatory environment imply for crypto infrastructure providers? - The Trump administration's pro-crypto stance paves the way for legitimization and mainstream adoption, significantly lowering compliance hurdles and reputational risks for traditional financial institutions entering the market. - This will likely trigger a surge in demand for infrastructure providers like Zerohash, as traditional institutions urgently seek compliant, robust solutions to build out their crypto offerings. - It portends an accelerated convergence of crypto and traditional finance in the coming years, with the infrastructure layer being a central beneficiary of this transformation. How can Zerohash leverage its relationships with traditional financial giants to solidify its market position? - By converting institutions like Morgan Stanley and Apollo into both investors and clients, Zerohash builds a significant moat, substantially boosting its credibility and market influence, making it difficult for other startups to displace. - These deep strategic alliances will provide invaluable industry insights and potential client networks, accelerating its expansion into high-potential areas like stablecoins and tokenization. - The endorsement from traditional financial behemoths, particularly under a favorable regulatory policy, is likely to attract a broader institutional client base, fostering powerful network effects and entrenching its position as a leading crypto infrastructure provider.