Privacy could be crypto's next 'killer app,' says Bitwise CIO

Matt Hougan, Chief Investment Officer (CIO) at Bitwise, has analyzed a surge in demand from institutional investors for privacy-focused cryptocurrency infrastructure, CoinDesk reported, citing a blog post by the executive. He noted that projects like Circle's (CRCL) Layer 1 chain Arc, Canton (CC), and Tempo have collectively raised over $1 billion. Hougan attributed this trend to several factors: the need to meet U.S. regulatory requirements, growing demand for privacy blockchains, and intensifying competition among enterprise-focused crypto networks. While existing blockchains struggle to balance speed, cost, and security, institutions are seeking chains that are fast, cheap, privacy-preserving, and compliant, he explained. "Privacy could become the crypto industry's 'killer app,'" Hougan argued, because institutions are uncomfortable with having all their transaction details publicly visible.