Ephemera just raised $20 million to build a crypto messaging protocol that could make WhatsApp and Signal look ancient. The startup’s XMTP protocol lets users send encrypted messages between wallet addresses, ditching centralized servers entirely. Union Square Ventures led the round, valuing Ephemera at $300 million. Coinbase already integrated it into their Base app. Users keep their chat history, not corporations. Whether crypto-native messaging will actually replace traditional apps remains the million-dollar question worth exploring further.
While tech giants like Meta and Google tighten their grip on digital communication, a crypto startup called Ephemera just raised $20 million to tear down their walled gardens.
Union Square Ventures led the Series B round, with heavy hitters like Andreessen Horowitz’s crypto arm, Coinbase Ventures, and even actor Ashton Kutcher throwing money at the cause. The funding values Ephemera at around $300 million, while their broader XMTP network clocks in at $750 million. Not bad for a messaging protocol most people haven’t heard of.
XMTP stands for Extensible Message Transport Protocol. It’s Ephemera’s answer to centralized messaging apps that control your conversations. The protocol lets people send encrypted messages between wallet addresses, turning your crypto identity into your messaging identity. Signal-grade security, they claim, but without trusting some company’s servers.
Your crypto wallet becomes your messaging identity—Signal-level encryption without corporate overlords watching your every word.
Here’s where it gets interesting. Ephemera isn’t just building another chat app. They’re creating infrastructure that bakes messaging directly into crypto operations. Coinbase already integrated XMTP into their Base app, moving from optional feature to core component. Users can now message while trading, sending payments, or placing bets through integrated agents.
The protocol runs on independent node operators instead of corporate servers. No single entity controls the network or can censor messages. Your chat history belongs to you, not Mark Zuckerberg. The testnet launched in February 2025, with mainnet coming later this year. Unlike centralized apps like Signal and WhatsApp, XMTP enables message portability across different platforms.
Third-party integrations turn chat threads into functional crypto interfaces. Bankr offers trading assistance, Flaunch handles token sales inside conversations, and Onit brings prediction markets to your messages. It’s like turning every chat into a mini crypto exchange.
The funding included equity and token warrants, signaling plans for a future cryptocurrency launch. Because apparently every crypto protocol needs its own token now. The company’s total funding now reaches $49.9 million, providing additional capital security for their ambitious roadmap.
Fred Wilson from Union Square Ventures joined Ephemera’s board as their first outside member. The company plans to expand their team to focus on protocol development and decentralized infrastructure.
Whether users will abandon WhatsApp for wallet-to-wallet messaging remains unclear. But Ephemera is betting that crypto-native communication will eventually replace traditional messaging platforms. Time will tell if they’re visionaries or just another overfunded crypto experiment.
