Etherealize, a startup developing infrastructure to help Wall Street institutions adopt Ethereum, has raised $40 million in Series A funding, co‑led by Electric Capital and Paradigm.

The new capital builds on an earlier grant from Vitalik Buterin and the Ethereum Foundation and will help fund Etherealize’s push to develop zero‑knowledge privacy systems, settlement engines, and applications for tokenized fixed‑income markets.

“This raise kicks off the ‘Institutional Merge’, upgrading institutional finance to modern, safer, globally accessible rails,» co-founder Danny Ryan, formerly of the Ethereum Foundation, said in an announcement on Wednesday.

Etherealize’s efforts to frame ETH as an institutional reserve asset and participation in regulatory discussions on Capitol Hill complement recent institutional developments on Ethereum.

BlackRock launched a tokenized money market fund on Ethereum, signaling support for blockchain-based asset issuance, while JPMorgan’s Kinexys platform is being ramped up for real‑world asset tokenization and on-chain USD payments.

With this funding, Etherealize aims to fast-track the development of financial infrastructure that will make Ethereum the unseen backbone of institutional markets.