Etherealize Raises $40 Million to Advance Institutional Ethereum Adoption

• Etherealize secures $40 million in funding led by Electric Capital and Paradigm.
• The initiative focuses on privacy infrastructure, settlement engines, and tokenized fixed-income markets.

Etherealize, an advocacy group for institutional adoption of Ethereum, raised $40 million in a funding round led by Electric Capital and Paradigm, according to GlobeNewswire and Blockworks on September 3, 2025. The group plans to develop Ethereum-based solutions tailored for financial institutions, including zero-knowledge (ZK) privacy infrastructure, a specialized settlement engine, and tools for tokenized fixed-income markets.

The investment will support the creation of institutional-grade ZK privacy infrastructure, addressing the confidentiality challenges financial institutions face when transacting on public blockchains. This technology allows businesses to settle transactions without exposing sensitive data, thus aligning blockchain operations with real-world compliance and privacy standards.

Etherealize also aims to optimize and streamline tokenized fixed-income markets with a specialized settlement engine. This infrastructure is designed to handle workflows for tokenized assets such as mortgages and credit products, moving beyond traditional blockchain capabilities to meet Wall Street's operational needs. The enhanced system is expected to improve settlement efficiency and create better liquidity in historically inefficient fixed-income markets.

Leadership plays a critical role in Etherealize’s strategy. Co-founder Danny Ryan, who previously led Ethereum’s transition to proof-of-stake, contributes significant technical expertise. Combined with former Wall Street trader Vivek Raman’s financial sector experience, the team bridges the gap between Ethereum’s technical frameworks and institutional financial requirements.

The funding highlights the group’s broader mission of positioning Ethereum as a global financial settlement layer. Etherealize is engaging with financial institutions and policymakers through education and advocacy to facilitate Ethereum’s integration into legacy systems. Raman’s recent testimony before the House Financial Services Committee underscores their commitment to regulatory alignment and market awareness.

As of September 3, 2025, 15:10 UTC, Ethereum (ETH) is trading at $4,465.33, with a 3.21% increase in the 24-hour trading volume, according to CoinMarketCap.