Etherealize raised 40 million dollars in Series A funding to build institutional infrastructure on Ethereum. The round was co led by Electric Capital and Paradigm and follows an earlier grant from Vitalik Buterin and the Ethereum Foundation. The startup says the new capital will accelerate work that helps banks and asset managers adopt Ethereum for real world markets.
Based in New York, the company plans to ship three core pieces of plumbing. A zero knowledge privacy layer for trading and settlement. A settlement engine designed for tokenization workflows. A set of applications that bring liquidity to tokenized fixed income. Co founders include Ethereum researcher Danny Ryan and Wall Street veteran Vivek Raman. The team frames the mission as upgrading legacy rails so institutions can use Ethereum without sacrificing compliance or confidentiality.
The timing lines up with a visible shift in traditional finance toward on chain products. BlackRock has launched a tokenized money market fund on Ethereum. JPMorgan is rolling out its Kinexys platform for tokenized assets and on chain payments. Etherealize positions its stack as the connective tissue that lets institutions plug into these efforts with familiar controls.
Deal terms reported by industry outlets point to a mix of equity and token warrants. Coverage also highlights a near term focus on moving mortgages and other credit instruments off phone calls and paper based settlement and onto programmable rails. That pitch reflects a broader view that tokenization can compress timelines and costs across fixed income markets.
If the firm delivers on its roadmap, more of Wall Street’s back office could run on Ethereum in the coming years. Success will depend on execution with custody and compliance partners as well as the pace of U.S. rulemaking. For now, the raise gives Etherealize a war chest to turn pilot conversations into production systems across trading, settlement, and tokenized assets.