A recent surge in institutional interest in blockchain technology has led to significant developments in the sector, exemplified by Zerohash, a crypto and stablecoin infrastructure firm based in Chicago. The company announced it has successfully raised $104 million, achieving a valuation of $1 billion. The funding round was primarily led by Interactive Brokers, a publicly traded brokerage.
Zerohash stands out in a competitive landscape of infrastructure firms by providing essential tools to financial institutions and fintech companies, facilitating the development of products related to stablecoins, crypto trading, and tokenization. Stablecoins, which are cryptocurrencies tethered to underlying assets such as the U.S. dollar, and tokenization, the process of converting financial assets into digital formats on the blockchain, represent critical components of the emerging digital economy.
The funding round included notable contributions from major players in traditional finance, such as Morgan Stanley and Apollo Global Management, alongside fintech company SoFi and Jump Trading’s crypto division. This diverse group of investors underscores the growing intersection between traditional finance and digital assets.
Zerohash’s latest valuation marks a substantial increase from its previous funding round in 2022, when the company was valued at $340 million, according to data from Pitchbook. Edward Woodford, the founder and CEO of Zerohash, confirmed the accuracy of this valuation leap but refrained from disclosing specific figures from prior fundraising efforts. The nearly threefold increase in the company’s worth signals a resurgence in interest in the crypto market, which had seen a downturn from 2022 to 2024 but is currently experiencing renewed enthusiasm.
Woodford attributes the renewed optimism to large institutional banks no longer viewing crypto as a contentious topic. “Crypto now is not a debated issue at this point at large institutional banks,” he stated, reflecting a shift in the mindset of traditional financial sectors towards embracing digital currencies.
With a decade of experience in the crypto landscape, Woodford has navigated through various market cycles. He holds a master’s degree in finance from MIT and previously founded a swaps platform for emerging commodities before selling it to the brokerage Tastytrade in 2017. Since then, he has led Zerohash through its evolution, focusing consistently on building vital crypto infrastructure for financial institutions.
Despite challenging market conditions over the past few years, Woodford claims that Zerohash has consistently increased its revenue, even during the downturn known as the Crypto Winter. While specifics on profitability remain undisclosed, he indicated that the company has managed to grow its topline every year for the last three years.
Zerohash operates in three main business areas: creating a white-labeled crypto brokerage that enables companies like Interactive Brokers to offer digital asset trading to their clients; providing APIs for tokenization that assist institutions such as BlackRock; and building stablecoin networks for clients like Stripe to facilitate more efficient token transactions.
Looking ahead, Woodford expressed confidence in the company’s potential to capitalize on favorable market conditions, stating, “Imagine what it looks like with tailwinds.” This optimism reflects the broader trend of increasing Wall Street involvement in digital assets, suggesting that the intersection of traditional and digital finance may be set for further growth in the coming years.
