Soda Labs Raises $3M Seed Led by NextBlock for Blockchain Confidentiality Infrastructure

Soda Labs Secures $3M Seed Round

Soda Labs, a developer of confidentiality infrastructure for financial activity on public blockchains, has raised $3 million in seed funding. The round was led by NextBlock, with participation from the same investor.

What Soda Labs Does

Soda Labs builds privacy-preserving infrastructure that enables financial transactions on public blockchains to remain confidential. Its core product, Bubble, leverages garbled-circuit multiparty computation (GC-MPC) to compute on encrypted data across multiple chains, including COTI, Ethereum, Polygon, Arbitrum, and Base.

The platform is designed for banks, payment companies, and tokenization platforms that need to transact privately while maintaining the ability to selectively disclose information through an on-chain access list. Notably, the technology runs on standard cloud CPUs, avoiding the need for specialized hardware.

Traction and Deployment

According to the company, the Bubble engine has processed more than 100 million transactions on COTI mainnet. It currently powers deployed applications such as tokenization platform Zoniqx and perpetuals exchange PriveX. Soda Labs is also working to convert undisclosed pilots with financial institutions into production deployments.

Leadership

Soda Labs was founded by CEO Avishay Yanai, who holds a PhD in cryptography, and CTO Meital Levy, who holds a PhD in algorithms. Together, the founders bring more than 20 years of security experience.

Market Context

As financial institutions increasingly explore blockchain-based settlement and tokenization, the need for confidentiality solutions that comply with regulatory requirements has grown. Soda Labs' approach aims to bridge the gap between public blockchain transparency and the privacy expectations of traditional finance.

Use of Funds

The company has not disclosed specific plans for the new capital, but the seed funding is expected to support further development and deployment of its confidentiality infrastructure as it seeks to bring more financial institutions into production.

About the Investors

NextBlock led the round. No other investors were listed in the funding announcement.

Looking Ahead

With a working product processing millions of transactions and partnerships with live applications, Soda Labs is positioning itself as a key infrastructure provider for private financial activity on public blockchains. The seed round provides capital to scale its go-to-market efforts and convert pilot programs into long-term commercial relationships.