Bitcoin Startup ZBD Secures $40M While BitGo Goes Public at $2.2B Valuation

Gaming Payments and Institutional Custody Lead Crypto Business Growth

Two major developments in the cryptocurrency industry highlight the diverging paths of business expansion, with one company securing private funding for Bitcoin-based gaming infrastructure while another enters public markets through a successful IPO.

ZBD Raises $40M for Gaming Payment Rails

Bitcoin payments startup ZBD has closed a $40 million Series C funding round to expand its blockchain-based payment infrastructure targeting the video game industry ^[1]. The New Jersey-based company received $36 million from lead investor Blockstream Capital, according to cofounder and CEO Simon Cowell ^[1].

The platform enables video game developers to integrate payment systems directly into games, facilitating peer-to-peer transfers, loyalty rewards, and Bitcoin payouts without depending on third-party fintech providers ^[1]. "We're talking about a payment solution for the entire industry that actually really enables them to have a direct financial relationship to the player," Cowell stated ^[1].

Cowell declined to reveal the company's valuation or identify other participating investors ^[1]. While ZBD is not yet profitable and withheld revenue figures, the company worked with 55 games in 2025 and maintains a workforce of approximately 70 employees ^[1].

Strategic Focus on Payments Over NFTs

The funding arrives as enthusiasm for crypto gaming has diminished from its 2021-2022 bull market peak ^[1]. ZBD has deliberately steered clear of NFTs and crypto-native gameplay mechanics, instead concentrating on payment solutions that have demonstrated more substantial adoption, particularly as stablecoins attract attention from companies like Stripe and financial institutions including JPMorgan Chase ^[1].

Founded by Cowell alongside André Neves and Christian Moss, ZBD builds its technology around Bitcoin rather than stablecoins ^[1]. The newly raised capital will fund expansion of ZBD's payment product suite throughout the coming year ^[1].

The company achieved notable success after integrating Bitcoin rewards into TapNation's mobile game Idle Bank, becoming the first mainstream mobile game to deliver Lightning Network payouts, which increased 30-day player retention by 355% and revenue per player by 124% ^[1].

BitGo Debuts on Wall Street

In a separate milestone for the crypto industry, custodian BitGo launched its initial public offering on the New York Stock Exchange, becoming the first major crypto company to go public in 2026 ^[2]. The company priced its shares at $18, exceeding the initially targeted range, and raised approximately $213 million while achieving a valuation of roughly $2.2 billion ^[2].

Founded in 2013, BitGo specialized early in institutional custody of crypto assets and currently secures digital assets worth tens of billions of dollars for hedge funds, exchanges, fintech companies, and large enterprises globally ^[2].

Regulatory Approval Strengthens Position

Shortly before the IPO, BitGo received critical regulatory approval from the U.S. Office of the Comptroller of the Currency (OCC) to operate as a national trust bank ^[2]. This authorization permits BitGo to offer custody services throughout the United States without requiring separate licenses in each state ^[2].

The public listing follows a series of successful crypto IPOs in 2025, including stablecoin provider Circle ^[2]. These listings demonstrate that investors increasingly distinguish between volatile token prices and more stable business models offered by crypto infrastructure providers ^[2]. Exchange operator Kraken also plans to go public this year after raising $500 million at a $15 billion valuation ^[2].