Key Highlights:
- Soda Labs secures fresh funding to scale its privacy architecture, which utilizes garbled-circuit Multi-Party Computation running on standard cloud CPUs.
- The firm’s infrastructure has processed over 100 million transactions and participated in institutional trials via the European Central Bank’s Pioneer programme.
- Capital will support the multi-chain rollout of Soda Bubble across Ethereum, Polygon, Arbitrum, Base, and Solana, as well as production integrations with banks and payment firms.
Soda Labs Secures Investment to Accelerate Onchain Privacy Infrastructure
Soda Labs has secured a new round of funding to drive the commercial adoption of its privacy-preserving blockchain infrastructure. Powered by garbled-circuit Multi-Party Computation (MPC), the company’s technology is already live in production on the $COTI mainnet. Unlike alternative privacy solutions that rely on specialized hardware or siloed networks away from public chains, Soda Labs’ architecture operates efficiently on standard cloud CPUs, facilitating private computation directly alongside public blockchain infrastructure.
The firm’s technical practicality and commercial readiness served as primary drivers for the investment. “What attracted us to Soda was not only the underlying cryptography, but the practicality of the technology for the financial workloads we believe will matter most onchain,” said Pieter van Poecke, Founder and General Partner of NextBlock. “Soda already had a working product and paying customers. We believe its differentiated technical IP, deeply technical founding team and strong commercial instincts give the company a compelling foundation for its next phase.”
Institutional Traction and the Expansion to Soda Bubble
To date, Soda Labs reports that its infrastructure has handled more than 100 million transactions. The company has also established an institutional footprint through experimental work with the European Central Bank’s Pioneer programme. Concurrently, its tokenization platform continues to onboard asset issuers across diverse markets and asset classes, while PriveX has facilitated more than $20 billion in total trading volume.
The newly acquired capital will fund Soda Labs’ transition from gcEVM—its Ethereum Layer 2 privacy implementation on $COTI—to its broader privacy architecture, Soda Bubble. Designed to bring confidential execution to multiple ecosystems, Bubble is currently expanding across Ethereum, Polygon, Arbitrum, and Base, with additional development underway to support high-throughput non-EVM networks such as Solana.
Highlighting the friction between institutional requirements and transparent ledgers, Avishay Yanai, Co-Founder and CEO of Soda Labs, addressed the core market need: “Public blockchains already have the liquidity, users and financial applications. What they lack is a way for regulated money to move without showing everyone everything,” Avishay Yanai, Co-Founder and CEO of Soda Labs, stated. “Bubble gives banks, payment companies and tokenization platforms privacy with controlled disclosure, on the chains they already use. This round lets us take it from pilots to production.”
Performance Benchmarks and Strategic Roadmap
In addition to cross-chain expansion, Soda Labs reported strong internal performance metrics from recent testing conducted on Arbitrum. Evaluating the full transaction lifecycle—spanning encryption, MPC computation, consensus, and final settlement—the new tests demonstrated a five- to 10-fold speed improvement compared to its previous benchmark. While these updated results remain unpublished, Soda Labs maintains that its underlying framework delivers between 10 to 100 times higher throughput alongside 100 to 1,000 times lower transaction costs compared to existing market alternatives.
Moving forward, the company intends to channel the fresh capital into scaling its validator network, expanding its blockchain integrations, and hiring talent. Soda Labs is actively advancing multiple undisclosed pilot programs with banks, tokenization platforms, payment firms, and broader financial infrastructure providers, targeting the transition of these initiatives into full production deployments.
Why This Matters
The broader adoption of public blockchains by regulated financial institutions has long been impeded by absolute transparency, which exposes sensitive commercial data, trading positions, and customer details. By employing garbled-circuit MPC on general-purpose cloud CPUs, Soda Labs bridges the divide between public liquidity and institutional regulatory demands through selective disclosure. If its upcoming multi-chain rollout across ecosystems like Arbitrum, Base, and Solana proves scalable and cost-effective, it could provide the foundational layer necessary for institutional capital and regulated payment providers to operate natively on public blockchains.
Frequently Asked Questions
What cryptographic approach does Soda Labs use for blockchain privacy?
Soda Labs utilizes garbled-circuit Multi-Party Computation (MPC). The core advantage of this approach is that it can run on standard cloud CPUs, eliminating the need for specialized hardware setups or isolated secondary ledgers.
Which blockchain networks are supported by Soda Labs’ technology?
Soda Labs initially deployed its gcEVM privacy layer in production on $COTI’s mainnet. Through its Soda Bubble expansion, the company is extending support to Ethereum, Polygon, Arbitrum, and Base, while actively developing integration capabilities for Solana.
How does Soda Labs plan to use its new funding round?
The company plans to expand its validator network, grow its internal team, broaden blockchain compatibility, and convert existing undisclosed pilot programs with banks, payment providers, and tokenization platforms into live production environments.
