- Ephemera secures $20 million Series B funding led by Union Square Ventures, a16z crypto, and Lightspeed Faction, achieving $300 million company valuation.
- XMTP protocol integrates with Coinbase Base application, transitioning from optional feature to core infrastructure supporting over 2 million connected identities.
- Enterprise-grade security using IETF-standard MLS protocol enables truly decentralized messaging with unruggable infrastructure and full open-source transparency for developers.
XMTP raises $20M Series B led by Union Square Ventures and a16z crypto, achieving $750M network valuation. Decentralized messaging protocol integrates with Coinbase Base, challenging WhatsApp and Signal.
Decentralized messaging protocol XMTP just secured $20 million in Series B funding, marking a significant step toward challenging traditional messaging giants like WhatsApp and Signal.
The round was led by major investors including Union Square Ventures, a16z crypto, and Lightspeed Faction, with participation from Coinbase Ventures and even actor Ashton Kutcher’s Sound Ventures.
Ephemera, the company behind XMTP, didn’t desperately need the money.
CEO Shane Mac revealed they still had plenty of runway from their 2021 funding round. Instead, this was a strategic move to accelerate their long-term vision of rebuilding messaging from the ground up. The funding values Ephemera at $300 million, while the broader XMTP network is valued at $750 million.
What makes this particularly interesting is the timing. While most crypto projects struggle with adoption, XMTP has quietly built real traction with over 2 million connected users and 60+ applications already using the protocol. More importantly, Coinbase just integrated XMTP into their new Base app, moving it from an optional feature to core infrastructure.
WHY DECENTRALIZED MESSAGING MATTERS
Traditional messaging apps like WhatsApp, Telegram, and Signal are controlled by single companies. They can change rules, ban users, or even shut down entirely. XMTP takes a different approach by building messaging infrastructure that no single entity controls.
The protocol uses the same security standards trusted by Google, Mozilla, and other tech giants. However, unlike centralized services, XMTP’s network operates independently across multiple nodes. This means your messages can’t be censored, your account can’t be randomly suspended, and the service can’t disappear overnight.
Fred Wilson from Union Square Ventures, who joined Ephemera’s board as part of this funding, put it simply: “Today, messaging is controlled by a handful of large companies and is completely siloed. XMTP is rebuilding it from first principles.” The key difference is that XMTP is open-source, secure, and designed to work across different apps and platforms.
BEYOND SIMPLE MESSAGING
XMTP isn’t just trying to replace WhatsApp with a decentralized version. The protocol is designed for the crypto era, where your digital identity is tied to your wallet address rather than your phone number. This opens up possibilities that traditional messaging apps can’t offer.
For instance, you can message someone using their Ethereum address, send crypto payments directly in chat, or interact with DeFi protocols without leaving your messaging app. Recent integrations with crypto services like Bankr and Flaunch are turning chat threads into functional financial interfaces.
The Coinbase integration demonstrates this vision in action. Instead of messaging being a separate app, it becomes native to your crypto experience. You can chat with other users, coordinate trades, or get notifications about your portfolio all in one place.
REAL ADOPTION IN A NOISY MARKET
What sets XMTP apart from many crypto projects is genuine adoption. MetaMask and Unstoppable Domains have both built on the protocol, while the public testnet has been running smoothly since February with independent operators validating the network.
The numbers tell the story: 2 million connected identities across 60+ production applications. These aren’t just vanity metrics – they represent real users and developers choosing XMTP over alternatives like Matrix or experimental projects from Twitter founder Jack Dorsey.
The protocol’s approach to spam filtering also shows practical thinking. When you block spam once on XMTP, it’s blocked everywhere you go across all apps using the protocol. This kind of cross-platform functionality is impossible with today’s siloed messaging systems.
CHALLENGING THE GIANTS
The $20 million raise brings Ephemera’s total funding to nearly $50 million, providing serious firepower to take on established players. However, CEO Mac acknowledges the challenge ahead. WhatsApp has billions of users, while Signal has built a reputation for privacy and security.
XMTP’s strategy isn’t to directly compete for everyday consumer messaging initially. Instead, they’re focusing on crypto-native use cases where decentralized messaging provides clear advantages. As the Web3 ecosystem grows, XMTP becomes more valuable as the communication layer connecting different blockchain applications.
The Coinbase partnership validates this approach. Rather than asking users to switch messaging apps entirely, XMTP integrates into platforms they already use. This reduces friction while demonstrating the benefits of decentralized messaging within familiar environments.
THE ROAD AHEAD
With fresh capital and strategic partnerships in place, Ephemera plans to expand their team and accelerate development toward the mainnet launch later this year. The company will focus on protocol development, infrastructure scaling, and product design to support broader adoption.
The bigger question is whether decentralized messaging will gain mainstream traction beyond crypto users. Privacy concerns about big tech companies are growing, while users increasingly want control over their digital identities and communications.
XMTP’s integration with Coinbase suggests that decentralized messaging might follow a similar path to cryptocurrency itself – starting with crypto-native applications before gradually expanding to mainstream use cases. The $750 million network valuation certainly suggests investors believe this future is possible.
Whether XMTP can actually challenge WhatsApp and Signal remains to be seen. But with proven technology, real adoption metrics, and substantial backing, the protocol is positioning itself as the infrastructure layer for next-generation messaging applications that prioritize user control, privacy, and interoperability over centralized convenience.
〈XMTP Raises $20M to Challenge WhatsApp with Decentralized Messaging〉這篇文章最早發佈於《CoinRank》。
