0xbow has successfully raised $3.5 million in a seed funding round led by Starbloom Capital to further develop its Privacy Pools protocol. This protocol leverages smart contracts to obscure transaction links while maintaining compliance with anti-money laundering regulations. Since its launch in March 2025, Privacy Pools has processed $6 million in transactions from over 1,500 users. CEO Nathaniel Fried highlighted the protocol's goal of offering financial privacy without facilitating illegal activities.