0xbow raises $3.5 million seed round for Ethereum Foundation-backed Privacy Pools project

Ethereum-based privacy startup 0xbow has raised a $3.5 million seed round led by Starbloom Capital, with participation from Coinbase Ventures and BOOST VC. 0xbow is the developer of Privacy Pools, a protocol central to the Ethereum Foundation’s Kohaku wallet initiative, designed to compliantly anonymize funds based on research co-authored by Vitalik Buterin regarding Association Sets. CEO Nathaniel Fried stated the goal is to offer financial privacy without enabling illicit activity, emphasizing that privacy and compliance are not mutually exclusive. Since launching in March 2025, Privacy Pools has processed about $6 million in volume for over 1,500 users. The new capital will fund expansion beyond the Ethereum mainnet and feature development, following recent integrations like support for Sky’s USDS stablecoin and a Tornado Cash Proof of Association pool.

(Source：The Block)