A group of former Ethereum Foundation researchers has launched a for-profit company, EthSystems, to build blockchain privacy infrastructure for commercial banks. The startup wants to commercialize confidentiality tools it developed inside the foundation, arguing that transparent public ledgers keep institutions from moving real-world assets onchain.
Former Ethereum Foundation researchers have launched EthSystems, a for-profit company built to bring blockchain privacy to commercial banks. The startup plans to build infrastructure for financial institutions on the Ethereum network.
A year of building for enterprise
EthSystems says it spent the past year developing privacy technologies for enterprise use cases while engaging with regulators, commercial banks and asset managers. The team plans to commercialize work it began inside the Ethereum Foundation, including confidential stablecoin transfers, private bond issues, and cross-chain settlements.
The spinout comes amid a wave of departures at the Ethereum Foundation tied to disputes over leadership, strategy, and the foundation's role in supporting Ethereum's user base.
Why banks stay off public ledgers
EthSystems argues that a lack of confidentiality is preventing commercial banks and asset managers from moving real-world assets onchain. Firms have increasingly embraced tokenized assets and stablecoins, yet many remain reluctant to transact on transparent public ledgers, which the company says creates demand for privacy.
The startup points to growing institutional interest in using blockchains for financial infrastructure and security, not only cryptocurrency investing. Its focus is privacy systems that let participants disclose transactions while keeping Ethereum's security guarantees intact.
Ether changed hands at $1,935 on July 15, the day EthSystems detailed its plans.
Source: CryptoProwl
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