As the hype around crypto gaming cools down, Bitcoin payment startup ZBD still successfully raised $40 million, focusing on payment infrastructure for the gaming industry, demonstrating a pragmatic approach to blockchain applications.
(Background: Blockstream announced the acquisition of Numeus’s digital asset trading and investment division, targeting institutional Bitcoin yield needs)
(Additional context: Blockstream, Safeheron, and EchoX collaborate to launch a new paradigm of on-chain finance in Asia, focusing on Bitcoin and RWA strategy integration)

Table of Contents

• Focused on “Payments” rather than NFTs, carving out a differentiated path
• Led by investment from Blockstream Capital
• Financial background team enters the gaming market
• Not yet profitable, but making market progress

Despite skepticism about the prospects of combining cryptocurrencies with the gaming industry, Bitcoin payment startup ZBD still successfully completed a new round of funding. According to the latest report from Fortune magazine, ZBD recently closed a $40 million Series C funding round, with the capital to be used to expand its blockchain payment solutions tailored for the gaming industry.

Focused on “Payments” rather than NFTs, carving out a differentiated path

Headquartered in New Jersey, USA, ZBD mainly provides integrated payment software for game developers, assisting with in-game transactions, including Bitcoin payments. Unlike many projects that have attempted to incorporate NFTs or crypto gameplay, ZBD has avoided NFTs from its inception, instead focusing on “payment infrastructure,” a relatively mature and practically demanded application scenario.

In recent years, as stablecoins and blockchain payment concepts have gained acceptance among fintech companies and traditional banks, the role of blockchain as a payment channel has been re-emphasized. ZBD has seized this trend, positioning itself as a foundational payment service provider for the gaming industry.

Blockstream Capital leads investment

Notably, this funding round was led by Blockstream Capital, which invested $36 million. This investment firm has close ties to early Bitcoin core developer Adam Back. ZBD co-founder and CEO Simon Cowell stated that the other investors and the company’s valuation have not been publicly disclosed.

Cowell pointed out that ZBD’s goal is not to serve a single game or platform but to provide a universal payment solution for the entire gaming industry, enabling game companies to establish direct financial relationships with players and reduce reliance on third-party payment platforms.

Financial background team enters the gaming market

It is understood that the founding team of ZBD mainly comes from the financial sector rather than traditional gaming. Cowell has a long history in asset management and has participated in investments related to the cryptocurrency exchange Bitstamp. ZBD was established in 2019; the company name is derived from a French cartoon character and has no specific technical meaning.

Currently, ZBD uses Bitcoin as its core payment asset, assisting games in distributing rewards to players or facilitating peer-to-peer transfers. The company also states that its technology can be used for loyalty reward mechanisms, allowing players to receive instant rewards for continued gameplay.

Not yet profitable, but making market progress

Cowell also admitted that ZBD has not yet reached profitability, and its revenue figures have not been disclosed. However, the company has made some progress in the mobile gaming market. ZBD currently has about 70 employees and plans to collaborate with 55 games by 2025.

ZBD stated that the $40 million raised will be used over the next year to expand its product line and develop a more comprehensive payment service portfolio, further deepening its presence in the gaming industry.

Against the backdrop of waning enthusiasm for crypto gaming concepts, ZBD’s pragmatic approach to payments as an entry point raises the question of whether it can become a successful case of blockchain application in real-world scenarios, which remains to be observed by the market.