$17M FUNDING ROUND IN STARTUP TO BRING BLOCKCHAIN TECH INTO ETFS

Last updated: June 20, 2025, 01:17 | Written by: Ari Paul

$17M Funding Round In Startup To Bring Blockchain Tech Into Etfs
$17M Funding Round In Startup To Bring Blockchain Tech Into Etfs

The race to bridge the gap between traditional finance and the burgeoning world of blockchain technology is heating up, and a recent $17 million funding round signals a significant step forward.While the elusive Bitcoin ETF continues to be a hot topic and source of frustration in the U.S. market, companies are working diligently behind the scenes to integrate blockchain solutions into the exchange-traded fund (ETF) landscape.This funding round highlights the increasing institutional appetite for crypto-focused ventures and the transformative potential of blockchain within the financial sector.This article delves into this pivotal funding round, exploring the company involved, its mission, the investors backing the project, and the broader implications for the future of ETFs and blockchain integration.

Securrency Leads the Charge: Bridging Blockchain and ETFs

Securrency, a blockchain-focused regtech and fintech startup, has emerged as a key player in this arena, recently closing a $17.65 million Series A round. The fresh capital injection will cover the compliance and licensing costs as Backpack looks to expand into more jurisdictions. Longtime Solana contributor Armani Ferrante s crypto wallet and exchange company Backpack has raised $17 million in a funding round led by Placeholder VC, according to a press release.This funding is specifically earmarked to advance their mission of bringing blockchain technology into the ETF market.The round was spearheaded by WisdomTree, a New York-based ETF giant, signifying a strong endorsement from within the established financial world.

Who is Securrency?

Securrency isn't just another blockchain startup; they are a company dedicated to navigating the complex regulatory landscape while leveraging the power of blockchain for financial innovation.They are focused on creating compliant and secure solutions that can facilitate the seamless integration of blockchain technology into traditional financial products, like ETFs.

What Problems Are They Solving?

The ETF market, while highly regulated and established, often lacks the efficiency and transparency that blockchain can provide. Patronus AI, a startup that specialises in aiding companies in identifying and rectifying reliability issues within their large language models, has raised $17m. According to Silicon ANGLE, the company recently closed a significant investment round, securing $17 million. Notable Capital spearheaded the Series A round, accompanied by Datadog IncSecurrency is tackling these challenges by:

  • Improving transparency: Blockchain's immutable ledger can offer unprecedented visibility into the underlying assets and transactions within an ETF.
  • Enhancing efficiency: Automation through smart contracts can streamline processes like settlement and reconciliation, reducing costs and increasing speed.
  • Increasing accessibility: Blockchain can potentially fractionalize assets, making ETFs more accessible to a wider range of investors.
  • Ensuring compliance: Their regtech focus ensures that all solutions adhere to existing regulations, mitigating risks and fostering trust.

Key Investors and Their Belief in Blockchain ETFs

Beyond WisdomTree's leading role, this $17 million funding round saw participation from a diverse group of investors, further validating the potential of Securrency's vision. Blockchain fintech company XREX has concluded a $17 million pre-A investment round led by a consortium of global investors, underscoring heightened institutional demand for crypto-focusedThese included:

  • Abu Dhabi Investment Office: A sovereign wealth fund, demonstrating global interest in blockchain innovation.
  • Monex: A Japanese securities behemoth, indicating a strong belief in the future of blockchain-integrated financial products in Asia.
  • RRE Ventures: A prominent VC firm with a track record of investing in disruptive technologies.
  • Strawberry Creek Ventures: Another VC firm focused on supporting innovative startups.
  • Panthera Capital: A VC firm specializing in investments in the digital asset space.

The participation of these established financial institutions and venture capital firms underscores the growing acceptance and recognition of blockchain's potential to transform the ETF industry. Securrency has raised 17 million dollars in total investments, while the startup aims to bring to exchange-traded funds (ETFs).Their investment isn't just about financial return; it's a strategic move to position themselves at the forefront of this technological shift.

The Allure of Blockchain for ETF Markets: A Deeper Dive

Why are these investors and companies so excited about the prospect of bringing blockchain to ETFs?Let's explore some key benefits:

  • Increased Transparency and Traceability: Blockchain technology provides an immutable and transparent record of all transactions.This is especially crucial for ETFs holding assets like precious metals, where verifying authenticity and origin is paramount.Imagine an ETF tracking gold; blockchain can provide a complete audit trail from mine to vault, increasing investor confidence.
  • Enhanced Efficiency and Reduced Costs: Traditional ETF operations involve multiple intermediaries, leading to higher costs and slower settlement times. Skip to main content Bitcoin Insider. MenuBlockchain can automate many of these processes, reducing reliance on intermediaries and streamlining operations. The Aztec Network has raised $17 million in a Series A funding round to further its efforts to bring programmable privacy to Web 3 transactions, the Ethereum startup announced Thursday. ParadigmSmart contracts can automate dividend payments, rebalancing, and other key functions, significantly lowering expenses.
  • Fractional Ownership and Increased Accessibility: Blockchain allows for the fractionalization of assets, making it possible to create ETFs with lower minimum investment thresholds. Securrency, a blockchain-focused regtech and fintech startup, has just closed a Series A round. The $17.65 million round was led by New York-based ETF giant WisdomTree and was participated in by the Abu Dhabi Investment Office, Japanese securities behemoth Monex, and VC firms RRE Ventures, Strawberry Creek Ventures, and Panthera CapitalThis opens up access to a wider range of investors, particularly those who may have been previously priced out of certain markets.For example, an ETF tracking real estate could be fractionalized, allowing smaller investors to participate in the property market.
  • Improved Security and Reduced Counterparty Risk: By leveraging the cryptographic security of blockchain, ETFs can mitigate risks associated with fraud, hacking, and counterparty failures.Blockchain-based ETFs can provide a more secure and resilient investment platform.

Beyond Bitcoin: Diversifying Blockchain Applications in Finance

While the focus on Bitcoin ETFs is understandable given its popularity, the potential of blockchain extends far beyond cryptocurrency. Among them is Armis Inc, a stealth startup headquartered in Palo Alto that broke cover today to announce that it has a closed a $17 million funding round. The financing was provided by TenayaCompanies are exploring innovative ways to apply blockchain technology to a wide range of financial instruments and asset classes.

Tokenizing Real-World Assets

One exciting area is the tokenization of real-world assets (RWAs). One startup is betting that AI agents will become an invaluable tool for the country's 33 million small businesses, and it just raised a fresh round of funding to bring to life its vision for anThis involves representing ownership of physical assets, such as real estate, commodities, or even art, on a blockchain.Tokenized assets can then be easily traded and managed through ETFs, providing investors with access to previously illiquid markets.Bringing precious metals like gold, with its $12 trillion USD global volume, onto the blockchain is a prime example of unlocking real value for businesses and investors seeking safety in uncertain economic times.

Improving Supply Chain Transparency

Blockchain can also be used to improve transparency and traceability within the supply chains of companies included in ETFs.This is particularly relevant for ETFs focused on specific industries, such as agriculture or manufacturing. $17M Funding Round in Startup to Bring Blockchain Tech Into ETFsBy tracking the origin and movement of goods on a blockchain, investors can gain greater confidence in the ethical and sustainable practices of the companies they are investing in.

Other Notable Funding Rounds in the Blockchain Space

Securrency isn't the only blockchain company attracting significant investment.Several other startups have recently secured substantial funding rounds, highlighting the continued growth and innovation within the industry.These include:

  • XREX: This blockchain fintech company concluded a $17 million pre-A investment round, emphasizing institutional demand for crypto-focused solutions.
  • Backpack: Armani Ferrante's crypto wallet and exchange company raised $17 million, indicating growing interest in user-friendly crypto platforms.
  • Kiln: This French crypto startup closed a $17 million funding round, demonstrating the global expansion of the blockchain ecosystem.
  • Aztec Network: This Ethereum startup raised $17 million to further develop programmable privacy for Web3 transactions.
  • Patronus AI: This startup secured $17 million to assist companies in identifying and rectifying reliability issues within their large language models, showing how blockchain solutions are becoming intertwined with AI technology.

These funding rounds, alongside Securrency's success, underscore the diverse applications of blockchain technology and the strong investor confidence in its long-term potential.

Challenges and Opportunities for Blockchain-Based ETFs

While the future of blockchain-based ETFs is promising, there are still challenges to overcome:

  • Regulatory Uncertainty: The regulatory landscape for cryptocurrencies and blockchain technology is still evolving, creating uncertainty for companies operating in this space.Clearer regulations are needed to foster innovation and protect investors.
  • Scalability Issues: Some blockchain networks struggle to handle the high transaction volumes required for ETF trading.Solutions like Layer-2 scaling solutions are being developed to address this issue.
  • Security Concerns: While blockchain is generally secure, there are still risks associated with smart contracts and other blockchain-based applications. French crypto startup Kiln just closed a $17 million funding round in December 2025; 1kx is leading the round with Crypto.com, IOSG, Wintermute Ventures, KXVC and LBank also participating. SomeRobust security measures are essential to prevent hacking and fraud.
  • Adoption Barriers: Widespread adoption of blockchain-based ETFs requires education and awareness among investors and financial institutions. $17M Funding Round in Startup to Bring Blockchain Tech Into ETFs. Share. Tweet. Share. Most Popular. 32.2K. News Allow me to introduce myself . I m QuiverX. 12.5KOvercoming misconceptions and building trust are crucial for driving adoption.

Despite these challenges, the opportunities for blockchain-based ETFs are immense. Longtime Solana contributor Armani Ferrante s crypto wallet and exchange company Backpack has raised $17 million in a funding round led by Placeholder VC, according to a press release.By addressing these hurdles and continuing to innovate, companies like Securrency can pave the way for a more efficient, transparent, and accessible financial future.

The Future of ETFs: A Blockchain-Powered Transformation?

The $17 million funding round secured by Securrency represents more than just a financial transaction; it's a vote of confidence in the transformative potential of blockchain within the ETF market.As the technology matures and regulatory frameworks become clearer, we can expect to see more innovative blockchain-based ETF products emerge, offering investors new ways to access and manage their investments.The integration of blockchain technology into ETFs promises to revolutionize the financial landscape, creating a more efficient, transparent, and accessible market for everyone.

Key Takeaways and Actionable Insights

  • Blockchain is coming to ETFs: The funding round highlights the growing interest in integrating blockchain technology into ETFs.
  • Securrency is a key player: They are focused on building compliant and secure blockchain solutions for the financial industry.
  • Investors are taking notice: Major financial institutions are backing blockchain-based ETF initiatives.
  • The benefits are significant: Blockchain can improve transparency, efficiency, accessibility, and security in ETFs.
  • Challenges remain: Regulatory uncertainty and scalability issues need to be addressed.

As an investor, keep an eye on developments in the blockchain-based ETF space. Taiwan s blockchain startup XREX has completed a pre-A round of financing, led by CDIB Capital Group, with $17 million in total. Taiwan s blockchain startup company XREX, which focuses on fiat cryptocurrencies, announced the completion of a Pre-A round of financing led by CDIB Capital Group with $17 million in total.While still early, the potential for long-term growth and innovation is significant.Consider researching companies like Securrency and WisdomTree to understand their vision for the future of finance.Educate yourself on the benefits and risks of blockchain technology to make informed investment decisions. Headline : $17M Funding Round in Startup to Bring Blockchain Tech Into ETFs As a Bitcoin exchange-traded fund (ETF) continue to elude U.S. markets, one startup has secured $17 million that seemThe future of ETFs is likely to be powered by blockchain, and now is the time to prepare for this transformation.

Ari Paul can be reached at [email protected].

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