Terminal 3 Secures $8M Seed Funding for AI Privacy Tech Expansion

Hong Kong-based Web3 startup, Terminal 3, has recently secured an $8 million seed funding round, aimed at advancing its development in data privacy and security protocols. The funds will be utilized to launch a new protocol expected to roll out later this year, as well as to expand the use of its decentralized identity and credential platform. These initiatives are designed to help businesses and individuals manage their data more securely and efficiently, especially in the face of increasingly stringent data regulations. The funding round was led by international venture capital firm Illuminate Financial and blockchain investment fund CMCC Titan Fund. Other notable investors include Animoca Brands, Progression Fund, IDG Blockchain, and Cherubic Ventures. Additionally, existing investors such as 500 Global, Consensys Mesh, Hard Yaka, and BlackPine have increased their capital contributions, demonstrating strong confidence in Terminal 3's future. Gary Liu, co-founder and CEO of Terminal 3, highlighted the significance of the investment. "As AI technology advances, especially with AI agents becoming more prevalent, personal privacy is under unprecedented threat," he said. "Businesses and developers also struggle with the high costs of complying with various data protection laws." Liu emphasized that Terminal 3's mission is to develop advanced technologies that not only protect user data but also enable cost-effective solutions for businesses to grow while embracing new technologies. To address these challenges, Terminal 3 has developed a suite of products and services leveraging blockchain and privacy-enhancing technologies, such as zero-knowledge proofs. These solutions help users maintain control over their data while ensuring its security and confidentiality. A recent addition to their portfolio is a verification and authorization platform tailored for AI agents. This platform allows for transparent and secure transactions, enabling users to grant permission to AI agents for specific actions like accessing bank account balances or planning travel itineraries without compromising their personal information. The importance of data privacy is underscored by a PwC survey, which found that over 80% of consumers now consider data privacy a crucial factor when choosing brands. This means that Terminal 3's innovative approach is not just a technical solution but also a strategic move to meet market demands. With the new capital, the company plans to expand its team and accelerate product iterations to stay ahead of the curve. For Terminal 3, this successful fundraising round represents a substantial endorsement of their existing efforts and positions them strongly for future competition. The AI agent market is projected to grow 40-fold over the next decade, making robust data privacy infrastructure essential for its responsible expansion. Animoca Brands' co-founder and chairman, Yat Siu, noted, "To scale the agent AI market responsibly, trustless networks like blockchain are necessary. Terminal 3's work on AI-driven data privacy is exciting, and we are proud to support their vision." Global financial markets are undergoing significant changes, driven by the need for reliable data and identity management systems. Illuminate Financial's Luca Zorzino stated, "The transformation of global financial markets hinges on solid data and identity management infrastructure, which is exactly what Terminal 3 is dedicated to building." CMCC Titan Fund's Shiau Sin Yen also praised the founding team for their expertise in technology, business, and policy, highlighting these skills as critical factors for the company's rapid growth and potential impact in the Web3 space. Terminal 3's founding CEO, Gary Liu, along with co-founders Malcolm Ong (product director) and Joey Liu (operations director), brings extensive experience from leading international tech companies like Google, Spotify, Microsoft, and Uber. They previously collaborated on the digital transformation of the century-old South China Morning Post, showcasing their ability to tackle complex technological and operational challenges. This blend of expertise and the backing of world-class investors position Terminal 3 as a formidable player in the Web3 ecosystem. As privacy regulations strengthen and consumer awareness of data rights grows, Terminal 3 aims to bridge the gap between compliance and innovation. Their goal is to create a fair and user-centric Web3 environment where both enterprises and individuals can thrive. By focusing on cutting-edge solutions like their AI agent identity platform, the company is poised to become a cornerstone of the next-generation internet infrastructure. Industry insiders and experts are bullish on Terminal 3's prospects. Luca Zorzino of Illuminate Financial believes that Terminal 3's innovative products will unlock opportunities in digital assets and decentralized technologies, paving the way for a new era of digital trust. Shiau Sin Yen of CMCC Titan Fund highlighted the founders' deep knowledge in Web3 as a key driver for the company's early success and long-term potential. Given the increasing demand for trustworthy data management solutions, Terminal 3 is well-positioned to lead the charge in reshaping the digital economy's trust foundation.