What are the investment opportunities around CBDC infrastructure and services?

This blog post has been written by the person who has mapped the CBDC infrastructure market in a clean and beautiful presentation

Central Bank Digital Currency infrastructure represents one of the fastest-growing fintech sectors, with over 137 countries exploring digital currency initiatives. The CBDC market creates unprecedented opportunities for entrepreneurs and investors in middleware services, compliance tools, and interoperability solutions.

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What specific parts of the CBDC infrastructure are startups and companies currently trying to build or disrupt?

CBDC infrastructure development focuses on seven core technology layers that central banks typically expose to private sector innovation.

The wallet and SDK layer represents the largest opportunity, with startups building end-user mobile applications, merchant integration APIs, and offline payment capabilities. Companies like Mobikwik and CRED have successfully deployed retail CBDC wallets in India's digital rupee pilot, processing millions of transactions monthly.

Identity and onboarding infrastructure creates another major opportunity, particularly around KYC/AML compliance and digital identity verification. IDEMIA leads this space with biometric authentication cards and secure hardware modules, while newer entrants focus on self-sovereign identity solutions that balance privacy with regulatory requirements.

Compliance and monitoring tools represent a critical infrastructure layer, with companies like Merkle Science providing real-time transaction screening and anomaly detection. These solutions must handle complex AML/CFT requirements while processing high transaction volumes.

Cross-border interoperability infrastructure attracts significant investment, as central banks seek to connect multiple CBDC systems. Adhara specializes in wholesale CBDC rails for international settlements, while other startups focus on retail cross-border payment bridges.

Which companies or startups are already leading in CBDC infrastructure or services, and what are their core offerings?

The CBDC infrastructure market features established players and emerging startups across different technology layers and geographic regions.

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What are the key gaps or unmet needs in the CBDC ecosystem that new ventures or investors could address?

Five major gaps present immediate opportunities for entrepreneurial ventures and strategic investments in the CBDC ecosystem.

Privacy-preserving digital identity represents the most significant unmet need, as current solutions struggle to balance user anonymity with regulatory traceability requirements. Self-sovereign identity frameworks using zero-knowledge proofs could enable compliant yet private CBDC transactions, particularly for smaller-value payments.

End-user experience and financial inclusion tools remain underdeveloped, especially for unbanked populations in emerging markets. Simple, offline-capable wallet solutions with minimal transaction costs could unlock massive user adoption in regions where smartphone penetration exceeds banking access.

Cross-border interoperability infrastructure lacks standardized protocols for connecting different CBDC systems. Plug-and-play integration solutions for paired CBDC corridors could significantly reduce implementation complexity and costs for central banks pursuing international cooperation.

Programmability tools for conditional payments need low-code frameworks that enable non-technical users to create smart contracts for automated disbursements, micropayments, and compliance workflows. Current solutions require significant technical expertise.

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Which startups have raised funding in 2024 and 2025 in the CBDC space, how much did they raise, and who are their investors?

CBDC infrastructure funding activity has accelerated significantly in 2024-2025, with several major rounds indicating growing investor confidence in the sector.

Merkle Science completed a $30 million Series B round in 2025 led by Lightspeed Venture Partners and Tiger Global Management, reflecting strong demand for compliance solutions as CBDC pilots expand globally. The company focuses on real-time transaction monitoring and AML/CFT screening for digital currencies.

Adhara raised $20 million in Series A funding during 2024, with SBI Holdings and Banco Santander leading the round. This investment supports their wholesale CBDC interoperability platform, which enables cross-border settlements between different central bank digital currencies.

Bitt Inc. secured $15 million in Series B funding in 2025 from the Caribbean Development Bank and strategic partners, building on their successful deployment of the Sand Dollar in the Bahamas and expansion across the Caribbean region.

IDEMIA obtained $10 million in strategic funding from the European Investment Bank in 2024, specifically earmarked for developing secure offline CBDC wallet solutions and biometric authentication technologies for emerging market implementations.

Chainlink raised $40 million in ecosystem funding during 2024 from Andreessen Horowitz and Paradigm, with portions allocated to CBDC oracle services and programmable payment infrastructure development.

What are the regulatory conditions or partnerships typically required to operate or invest in CBDC-related ventures?

CBDC ventures must navigate complex regulatory frameworks requiring multiple licenses, partnerships, and compliance certifications to operate effectively.

Central bank licensing represents the primary regulatory requirement, with most jurisdictions requiring formal memorandums of understanding or technology provider agreements before companies can participate in CBDC development. These agreements typically include technical audits, cybersecurity certifications, and ongoing regulatory reporting obligations.

KYC/AML integration compliance follows FATF recommendations and local financial intelligence unit requirements, necessitating robust customer due diligence processes and suspicious transaction reporting capabilities. Companies must demonstrate compliance with evolving anti-money laundering frameworks specific to digital currencies.

Technical accreditation processes require vendor audits covering cybersecurity resilience, system redundancy, and operational continuity planning. Central banks mandate rigorous testing protocols and sandbox participation before approving production deployments.

Public-private steering committees provide governance oversight for CBDC development, requiring companies to participate in multi-stakeholder policy discussions and technical standards development. These partnerships help shape protocol design and ensure industry-wide interoperability.

What are the most promising service layers around CBDCs — for example, identity, compliance, privacy, or user wallets?

Five service layers present the highest growth potential and investment returns in the expanding CBDC ecosystem.

Digital identity and onboarding services represent the most promising opportunity, combining strong regulatory demand with technical complexity that creates competitive moats. Solutions must integrate national digital identity schemes while providing privacy-preserving authentication for CBDC transactions.

Real-time compliance and monitoring tools offer substantial revenue potential as regulatory requirements intensify globally. Companies providing automated AML/CFT screening, transaction pattern analysis, and regulatory reporting tools can capture significant market share.

Offline and secure wallet infrastructure addresses critical financial inclusion requirements in emerging markets where internet connectivity remains unreliable. Hardware-based solutions with biometric authentication enable CBDC adoption among unbanked populations.

Programmable payment engines unlock new use cases for conditional transfers, automated compliance workflows, and smart contract integration. These platforms enable central banks to implement sophisticated monetary policy tools and automated disbursement systems.

Interoperability gateways facilitate cross-border CBDC transactions and integration with existing payment rails, creating essential infrastructure for international adoption and reducing implementation barriers for central banks.

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Which central banks or governments are actively piloting or deploying CBDCs in 2025, and who are their technology partners?

Multiple central banks have progressed beyond research phases into active pilot deployments and production launches with specific technology partners.

How are incumbent players (e.g., Visa, Mastercard, SWIFT, IBM) positioning themselves in the CBDC landscape, and can we invest alongside or partner with them?

Major financial infrastructure incumbents are pursuing strategic partnerships and technology offerings rather than competing directly with CBDC initiatives.

Visa and Mastercard have developed tokenization platforms and sandbox environments enabling CBDC wallet acceptance across their existing merchant networks. Their CBDC Connect programs provide APIs for seamless integration between digital currencies and traditional payment rails, creating co-investment opportunities through their venture arms.

SWIFT is developing its "gpi link" infrastructure to enable CBDC-to-CBDC cross-border payments, positioning itself as the interoperability layer between different national digital currencies. The organization offers partnership opportunities for technology providers specializing in compliance and settlement optimization.

IBM provides enterprise DLT platforms and managed services specifically designed for central bank requirements, including the Hyperledger Fabric-based solutions used in several wholesale CBDC pilots. Their Global Business Services division actively seeks technology partnerships for CBDC implementation projects.

Partnering strategies include corporate venture capital investments through programs like Mastercard Start Path, technology integration partnerships for API development, and consortium participation in standards development organizations. These relationships provide market validation and distribution channels for startups.

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Are there secondary opportunities emerging around CBDC adoption, like cybersecurity, education, or consulting?

CBDC implementation creates substantial secondary markets beyond core infrastructure development, generating opportunities across multiple service categories.

Cybersecurity services represent the largest secondary opportunity, with central banks requiring specialized resilience testing, hardware security modules, and continuous threat monitoring. Companies like Thales and FireEye provide dedicated CBDC security solutions, while newer entrants focus on zero-trust architectures and quantum-resistant encryption.

Education and consulting services address the knowledge gap among central bank staff, commercial banks, and policymakers regarding CBDC implementation. Specialized advisory firms like BCG and McKinsey have developed CBDC practice areas focusing on policy design, change management, and stakeholder engagement strategies.

Testing and certification services provide end-to-end compliance validation, performance benchmarking, and interoperability verification for CBDC systems. These services become mandatory as central banks require third-party audits before production deployments.

Legal and regulatory advisory services help navigate complex compliance frameworks, intellectual property issues, and cross-border regulatory coordination. Specialized law firms are developing CBDC expertise as regulatory frameworks evolve rapidly across jurisdictions.

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What is the projected growth or adoption timeline of CBDC implementation globally between now and the end of 2026?

Global CBDC adoption is accelerating rapidly, with analyst consensus projecting 20-30 retail CBDC launches by end-2026.

Currently 137 countries representing 98% of global GDP are exploring CBDCs, with 72 countries in advanced development phases and 49 active pilot projects. This represents a dramatic increase from only 35 countries exploring CBDCs in May 2020.

Regional adoption patterns show emerging markets leading retail CBDC deployment, particularly in Asia, Africa, and the Caribbean where financial inclusion drives adoption. Digital yuan transaction volume reached 7 trillion e-CNY ($986 billion) by June 2024, nearly four times the 2023 volume, demonstrating successful large-scale implementation.

Wholesale CBDC projects are expanding faster than retail implementations, with 13 active cross-border initiatives including Project mBridge connecting China, Thailand, UAE, Hong Kong, and Saudi Arabia. These wholesale projects typically transition to production status within 18-24 months of pilot initiation.

European and North American markets are pursuing more cautious timelines, with the European Central Bank planning potential digital euro development starting in November 2025 and the UK targeting 2025-2026 for digital pound decisions. However, President Trump's 2025 executive order halted US retail CBDC work, making America an outlier among major economies.

What investment structures (VC, equity, tokens, convertible notes) are typically used in the CBDC infrastructure sector?

CBDC infrastructure investments predominantly utilize traditional venture capital structures with some sector-specific variations reflecting regulatory requirements and technology partnerships.

Venture equity rounds represent the most common investment structure, with Series A and B rounds ranging from $15-40 million for platform development and market expansion. These rounds typically include strategic investors from the financial services sector alongside traditional VCs.

Convertible notes and Simple Agreements for Future Equity (SAFEs) are frequently used for early-stage pilots involving central bank partnerships, providing flexibility as regulatory frameworks evolve and pilot results determine commercial viability.

Strategic joint ventures and co-development agreements offer alternative investment structures, particularly for partnerships between startups and incumbent financial institutions. These arrangements often include technology licensing, revenue sharing, and exclusive distribution rights.

Token sales and SAFT agreements remain rare and are primarily limited to DLT-native firms developing utility tokens for specific CBDC infrastructure functions. However, these structures face significant securities law compliance challenges and regulatory uncertainty.

Corporate venture capital arms from banks, payment processors, and technology companies provide strategic investments with built-in distribution partnerships and regulatory guidance, often structured as preferred equity with board representation and technology integration requirements.

Based on current signals, what strategic actions should an investor or entrepreneur take now to capture early-mover advantage in CBDC infrastructure?

Five strategic actions provide optimal positioning for capturing early-mover advantages in the rapidly evolving CBDC infrastructure market.

Engage early in regulatory sandboxes by securing slots with central banks to validate technology solutions and establish credibility. Sandbox participation provides direct access to policymakers, technical requirements, and implementation timelines while building regulatory relationships essential for commercial deployment.

Build modular API-first solutions focusing on plug-and-play identity, compliance, and wallet SDKs that integrate easily with diverse CBDC platforms. Modular architectures enable rapid deployment across multiple jurisdictions while reducing central bank integration complexity and development costs.

Form strategic consortia with incumbent financial institutions to leverage their regulatory credibility, distribution networks, and technical expertise. These partnerships provide market validation, reduce competitive threats, and accelerate customer acquisition through established relationships.

Target niche use cases with high regulatory or technical barriers, such as programmable payments for public sector disbursements, cross-border remittances for specific corridors, or privacy-preserving identity solutions for emerging markets. Specialization creates defensible competitive positions.

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Conclusion

Sources

1. Atlantic Council CBDC Tracker
2. Bank for International Settlements CBDC Report
3. Merkle Science CBDC Compliance
4. Inc42 Mobikwik CBDC Launch
5. Ledger Insights Digital Rupee Pilot
6. IDEMIA Offline CBDC Wallet
7. CBDC Tracker
8. IMF Future of Money CBDC
9. Mastercard CBDC Guide
10. The Chain CBDC Synergy 2025