Etherealize has raised $40 million to expand the use of Ethereum by Wall Street institutions.

The round was led by venture firms Paradigm and Electric Capital, with early support from Ethereum cofounder Vitalik Buterin and the Ethereum Foundation, which provided an initial grant. The funding included both equity and token warrants, Fortune reported.

The company’s goal is to tokenize financial assets such as mortgages, credit products, and other fixed-income instruments, moving them away from legacy systems like phone-based trading and faxed settlements.

CEO Vivek Raman, who previously held roles at Morgan Stanley, UBS, and Deutsche Bank, said Etherealize intends to tackle inefficiencies in institutional finance with blockchain infrastructure. 

“If you digitize and put [assets] on a blockchain, it’s a step function of improvement,” he said.

The launch comes amid a regulatory environment under the Trump administration that has opened the door to wider crypto adoption by major banks and asset managers.

Institutions are increasingly exploring blockchain for stablecoins and financial product issuance. Still, Ethereum cofounder Danny Ryan, also a cofounder of Etherealize, noted that today’s permissive regulatory conditions may not last, pushing the team to accelerate adoption while the opportunity remains.

Etherealize’s founding team combines crypto-native expertise and traditional finance experience. Alongside Raman and Ryan, cofounders include Grant Hummer, another Wall Street veteran, and Zach Obront, an Ethereum security engineer.

This is a developing story.

This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.

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