Crypto funding: Zero-knowledge tools stole the show this week

As ZK proof development continues apace, two startups focused on creating tools for building with zero knowledge announced funding rounds

article-image

Matusciac Alexandru/Shutterstock modified by Blockworks

share

Two projects focused on zero-knowledge — the cryptographic concept of proving a statement true without looking at its contents — announced funding rounds this week.

Variant and 1kx headlined a $6 million fundraise for Modulus, a startup using zero-knowledge to “bring AI on-chain.” Stanford University’s Blockchain Builders Fund also participated.

Modulus pitches itself as using zero-knowledge proofs to let AI developers check that their tools are working as intended without sacrificing decentralization. In a blog post announcing the fundraise, the company said a partnership with Worldcoin is in the works. 

Evolution Equity Partners led a $5 million funding round for Boston-based Toposware, a software development firm hoping to woo developers with its “zkEcosystem.”

Polygon co-founder Sandeep Nailwal participated in the funding round and is listed as a member of Toposware’s advisory council alongside Meta’s director of infrastructure and the global general manager of IBM.

Read more: Polygon’s new zk-powered token is live on Ethereum mainnet

Other notable fundraises

  • Hong Kong-based Animoca Brands received $50 million from a fund owned by Saudi Arabia’s Public Investment Fund to boost Saudi Web3 development 
  • The Ekubo Protocol automated market maker (AMM) is poised to raise $12 million from Uniswap’s DAO after an initial community token vote.
  • Tech investment giant a16z is reportedly aiming to raise $3.4 billion for its next round of venture funds. The firm plans new crypto investment vehicles in 2025. 
  • Base’s Surf derivatives exchange raised $3 million from ABCDE and others to support its creation of the “contracts based version of Uniswap.”

Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Figure, founded by former SoFi CEO Mike Cagney, has emerged as a leader in onchain RWAs, with ~$17.5B publicly tokenized. The platform’s ecosystem volume is growing ~40% YoY as it expands beyond HELOCs into student loans, DSCR loans, unsecured loans, bankruptcy claims, and more. Operationally, Figure cuts average loan production cost by ~93% and compresses median funding time from ~42 days to ~10, creating a durable speed-and-cost advantage.

article-image

New short and long-term priorities include L1 gas boosts, ZK-EVMs, privacy reads, and a lean, quantum-resistant Ethereum

by Blockworks /
article-image

The new stBTC token redistributes Bitcoin gas fees to users, creating liquid yield without inflation or lockups

by Blockworks /
article-image

The reserve will collect protocol revenues to back W token, alongside new yield and unlock schedule

by Blockworks /
article-image

Layer 2 network Taiko integrates Chainlink Data Streams to deliver reliable onchain market data for DeFi and institutions

by Blockworks /
article-image

The license will allow Bullish to operate in New York under strict digital asset rules

by Blockworks /
article-image

The derivatives giant expands crypto offerings with new Solana and XRP futures options, pending regulatory review

by Blockworks /