Why Crypto VCs Are Pouring Money Into Privacy Technology Now

Venture capital is flooding into crypto startups at an unprecedented pace, with $588 million deployed in just the first two weeks of January 2026. The momentum underscores growing institutional confidence in blockchain infrastructure—particularly privacy-focused solutions.

Rain's $250 million raise at a $2 billion valuation signals strong demand for stablecoin payment platforms. Meanwhile, Alpaca's $150 million round—backed by Citadel Securities—highlights Wall Street's accelerating adoption of crypto trading infrastructure.

Privacy technology emerges as the dark horse of this funding cycle. As institutions demand confidential on-chain transactions, investors are betting heavily on protocols that enable regulatory-compliant anonymity.

Southeast Asia's crypto ecosystem gains traction with ICEx's $70 million raise. The Indonesian exchange aims to capitalize on the region's booming digital asset adoption through regulated services.