Matt Hougan, Chief Investment Officer (CIO) at Bitwise, analyzed in a blog post that institutional investors' demand for privacy-focused cryptocurrency infrastructure is rapidly increasing. According to CoinDesk, he stated, "Circle's (CRCL) Layer 1 chains Arc, Canton (CC), and Tempo have collectively raised over $1 billion. The reasons behind this include: △meeting U.S. regulatory requirements, △increasing demand for privacy blockchains, and △intensifying competition among enterprise-focused cryptocurrency networks. While existing blockchains struggled to find a balance between speed, cost, and security, institutions are seeking chains that are fast, inexpensive, maintain privacy, and comply with regulations. Privacy could become the killer app for the future cryptocurrency industry. This is because institutions are uncomfortable with all transaction details being publicly disclosed," he explained.
