Ephemera raises $20 million to rival Signal and WhatsApp

• Ephemera raised $20 million in Series B funding at a $300 million valuation
• Built on the XMTP protocol to let users move chat history between apps
• Backers include Union Square Ventures, a16z crypto, Lightspeed Faction, Coinbase, Sound Ventures and Ashton Kutcher

Cryptocurrency has long offered the idea of decentralization, from digital money to distributed computing. Ephemera and its team of XMTP protocol developers aim to apply that concept to messaging. They have built a peer‑to‑peer network where users keep control of their own conversations rather than rely on a single company’s server. This design lets chat histories travel seamlessly between any app that supports the protocol and allows anyone to inspect the network for potential issues.

Ephemera raises $20 million in Series B funding valuation

In August, Ephemera closed a $20 million Series B round that values the company at $300 million. The funding was co-led by Union Square Ventures—whose cofounder Fred Wilson joined the board—and the crypto arms of Andreessen Horowitz and Lightspeed Faction. Participation from Coinbase, Sound Ventures and actor Ashton Kutcher underscores broad confidence in the vision. Ephemera’s CEO, Shane Mac, confirmed that the round included both equity and token warrants, laying groundwork for an eventual cryptocurrency launch, though no date has been set. This infusion of capital will accelerate network growth and protocol development without relying on centralized servers.

Decentralized messaging network with XMTP protocol

At the heart of Ephemera’s service is the XMTP (Extensible Message Transport Protocol), an open protocol designed to replace siloed chat systems. Unlike Signal or WhatsApp—where messages remain trapped behind company servers—apps built on XMTP allow users to carry past conversations across different clients. If you switch from one XMTP-enabled app to another, your entire chat history moves with you, since it lives on a peer‑to‑peer network rather than a single vendor’s infrastructure. This approach not only simplifies migration but also opens the door for independent security audits, because every node in the network can be inspected rather than hidden behind proprietary code.

Ephemera integration and monetization strategy

Several leading crypto services are already experimenting with XMTP. MetaMask integrates messaging directly into its wallet, while Unstoppable Domains leverages the protocol to connect domain ownership with private chat. Coinbase rolled out a revamped wallet in beta that taps into the same network, enabling seamless in‑app messaging. To sustain the network, Ephemera plans to operate a subset of the message‑relay servers. Developers pay a small fee per message routed, creating a clear revenue path without compromising decentralization. On top of this infrastructure, Ephemera will launch its own branded messaging client—providing a familiar interface for users unaccustomed to protocol‑level interactions.

Conclusion

Ephemera represents a significant step toward messaging that respects user ownership and privacy. By funding development with both equity and token warrants, and by focusing on an open protocol rather than a closed application, Ephemera sets the stage for a new class of chat services. As more wallets and dApps adopt XMTP, Ephemera’s network effects should strengthen, offering a genuine alternative to centralized platforms and fulfilling crypto’s promise of decentralization.

Disclaimer

The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.

image source