Key facts
- EthSystems, a new for-profit startup, has been launched by former members of the Ethereum Foundation's Institutional Privacy Task Force.
- The company will focus on building privacy infrastructure for banks and other financial institutions utilizing Ethereum.
- EthSystems plans to commercialize privacy technologies developed within the Ethereum Foundation, including confidential stablecoin transfers and private bond issuance.
- The launch addresses the demand for privacy-preserving infrastructure as institutions show increasing interest in using public blockchains for financial services beyond cryptocurrency investing.
Former members of the Ethereum Foundation's Institutional Privacy Task Force have launched EthSystems, a new for-profit startup aimed at providing privacy infrastructure for banks and other financial institutions. The company will commercialize privacy technologies that were developed within the foundation, addressing a key barrier to the adoption of public blockchains for traditional finance.
EthSystems plans to offer solutions such as confidential stablecoin transfers, private bond issuance, and cross-chain settlement systems. The startup's formation follows recent organizational changes within the Ethereum Foundation, which has seen several teams spin out into specialized entities like EthLabs and Ethereum Institutional to better manage protocol development and institutional engagement.
The launch highlights the increasing institutional interest in leveraging public blockchains for financial infrastructure beyond cryptocurrency trading. EthSystems argues that the lack of confidentiality on transparent public ledgers deters many banks and asset managers, and its modular privacy systems aim to provide selective disclosure while maintaining Ethereum's security. The company is backed by investors including BitMine, SharpLink, SNZ, and Ethereum co-founder Joseph Lubin.