Digital Asset has closed a $355 million funding round led by Andreessen Horowitz's a16z, pushing the blockchain firm's valuation to $2 billion. The raise extends a Wall Street-backed funding surge as major banks ramp up pilots on the Canton Network, the company's interoperable blockchain platform designed for institutional finance.
Details of the raise
The round was led by a16z, one of the most active crypto venture firms. Digital Asset didn't disclose whether existing investors also participated, but the $355 million injection brings the company's total funding well past the half-billion mark. The new valuation of $2 billion is more than double where the firm was two years ago.
Banks ramp up Canton pilots
The timing is no accident. Digital Asset's Canton Network — a blockchain tailored for regulated financial institutions — has been gaining traction this year. Several Wall Street banks are running live pilots on the network, testing everything from tokenized collateral to settlement workflows. The company says the fresh capital will go toward scaling Canton's infrastructure and hiring engineers.
a16z's crypto bet
A16z has been doubling down on institutional blockchain plays. The firm led Digital Asset's previous round as well, and this latest commitment signals confidence in the thesis that banks will eventually adopt permissioned blockchains at scale. For a16z, it's a bet on infrastructure rather than consumer applications — a lane where Digital Asset faces competition from R3 and VMware's blockchain unit.
Next steps for Digital Asset
Digital Asset plans to use the funding to expand its team and speed up product development. The company is also eyeing regulatory clearances in Europe and Asia to allow more banks to run Canton nodes. Whether the round is enough to fend off rivals will depend on how quickly those bank pilots turn into production systems. The next big milestone: a public testnet launch expected later this year.
