Seismic Raises $10 Million for Blockchain Privacy Infrastructure

Seismic has successfully secured $10 million in funding, led by a16z, to overcome privacy challenges that prevent fintech companies from leveraging public blockchains for sensitive operations such as private credit and cash accounts.

Key Takeaways

Seismic secures $10 million in a funding round to enhance blockchain privacy infrastructure.
The funding led by a16z addresses privacy issues in public blockchains that hinder fintech use.
Seismic is developing an encrypted blockchain allowing smart contracts to process sensitive data securely.
The company expects to generate revenue soon through transaction fees and future expansion into other services.
The shift in industry reliance on blockchain privacy underscores its growing importance for mainstream adoption.

By prioritizing privacy, Seismic is positioned to play a pivotal role in the evolving relationship between fintech and blockchain technology.

Seismic raises an additional $10 million.

This funding round, announced on November 12 by founder Lyron Co Ting Keh, also included contributions from Polychain, dao5, Amber Group, TrueBridge Capital, and LayerZero Labs. With this latest investment, Seismic's total funding has reached $17 million after its March seed round.

Keh highlighted the growing interest in cryptocurrency among fintechs for facilitating cross-border payments and lending. However, he noted that the transparency of public ledgers remains a significant obstacle when it comes to managing sensitive user information.

Seismic’s Vision for Blockchain Privacy

Seismic aims to create an encrypted blockchain with privacy integrated at the core protocol level—a shift from the current prevalent solutions that operate only at the wallet or application layer. Currently available on its development network, this blockchain allows smart contracts to handle sensitive data without making it visible on a public ledger. Early collaborators include Brookwell, which offers cash accounts based on stablecoins, and Cred Protocol, which specializes in private credit scoring.

The company anticipates starting to generate revenue early next year through transaction fees and plans to expand into fiat on-ramps and card programs.

This funding round follows a16z's initial investment in Seismic back in June. At that time, the firm emphasized that the inherent transparency of leading Layer 1 blockchains poses a “critical barrier” for sectors such as financial services and healthcare. While zero-knowledge proofs can ensure accuracy, they can often “hamper composability,” making it nearly impossible to develop applications that require shared private states. Seismic's design, they argued, provides an effective solution to this challenge.

The momentum from this funding also reflects a larger industry trend: blockchain privacy is transitioning from a niche feature to a necessity for widespread adoption. A16z’s policy leaders have likened this moment to the early days of the internet, which required HTTPS before e-commerce could flourish; they contend that current blockchains need similar foundational privacy frameworks to evolve.