Miden, Initially Developed Within Polygon Labs as a Zero-Knowledge Protocol, Secured $25 Million in Seed Funding

Miden, a protocol initially developed within Polygon Labs, has secured $25 million in seed funding. The investment, led by a16z Crypto and also backed by 1kx, Hack VC, and angel investors, supports Miden’s evolution into an independent entity.

The capital will be used to complete the protocol and launch its mainnet in Q4 2025. The startup also plans to integrate with the Polygon ecosystem through AggLayer and perform a 10% token airdrop to POL holders.

Miden is introducing a new class of blockchain with ‘edge execution.’ In this model, computation shifts from central validators directly to user devices, such as smartphones or laptops. This decentralized execution model inherently enhances scalability and confidentiality as data is processed closer to its point of origin.

Such an approach minimizes exposure on the public network, enabling a blockchain protocol that offers both improved privacy and greater performance throughput. The protocol’s transactions can also be conducted privately or publicly at the user level, granting institutions control over sensitive information.

This innovation is a continuation of co-founder Bobbin Threadbare's work from his time at Meta, which spanned over a decade and involved building large-scale systems like Content Placements and News Feed on Facebook.

“At Meta, I saw the problems of scaling a centralized system to billions of users, and I realized that blockchain technology could offer a solution. I began working on a new type of blockchain that would be able to handle the same level of scale and throughput as the centralized systems we use today, but with the same level of privacy and decentralization as a standard cryptocurrency,” Threadbare explained.

“Initially within Polygon, I continued my work on STARKs and zkVMs, but within a year I came up with the Miden protocol. The idea of Miden was to solve the problems I first recognized in 2018: how can we build a blockchain that can scale to billions of users, can support privacy, and ultimately be useful for enterprise applications?”

This technology is aiming for use cases that are pivotal for driving institutional blockchain adoption, especially where transactional secrecy is crucial. As highlighted by co-founder Azeem Khan, there are concerns that public visibility for high-value payments could significantly disrupt markets.

“We need strong blockchain privacy solutions like the ones Miden is building if we want to see broader institutional adoption of crypto. We're focused on enabling companies to operate in a transactional environment that is both private and efficient,” said Khan, also known for his contributions to projects like MakerDAO and Keep3r Network.

Operating as a zero knowledge protocol, Miden can verify transactions without revealing the underlying data, making it appealing for finance, healthcare, and logistics. This aligns strongly with emerging industry requirements as interest in DeFi continues to grow among institutions.

An EY Parthenon survey indicates that nearly half of uninvolved institutions plan to enter DeFi within the next two years. However, despite this interest, institutions have expressed hesitancy due to the lack of privacy and confidentiality in most protocols, which is a critical concern for institutions engaging in high-value transactions or operating in regulated sectors.

With its recent $25 million seed funding, Miden plans to expand its operations significantly. The startup is aiming to grow its team to 25 members by year-end and boost developer adoption through its Pioneer program.

This capital will directly support the creation of essential infrastructure, such as wallets, bridges, and various integrations necessary for robust ecosystem expansion. The startup will also be focusing on marketing and developer relations.

Moreover, Miden will maintain its involvement with the Polygon Breakout Program and integrate with AggLayer. These connections ensure the protocol remains interoperable within Ethereum-compatible networks while firmly establishing its specialized place in enterprise privacy and decentralized infrastructure.

Industry figures are expressing optimism that the enhanced confidentiality features will drive the next significant wave of institutional blockchain adoption, especially as zero-knowledge rollups gain prominence.

In this context, Miden’s distinct market position focused on edge execution and privacy could potentially unlock substantial institutional capital, estimated at $1 trillion by Inco founder Remi Gai.

This positive outlook is further reinforced by the participation of angel investors associated with leading projects like MakerDAO, Aptos, and EigenLayer in the seed funding round. This broader shift towards sophisticated blockchain privacy solutions marks a new stage in the evolution of distributed ledger technology for enterprise use.