- EthSystems, a new company spun out from the Ethereum Foundation, has launched to develop blockchain privacy solutions for banks and financial institutions.
- The company will commercialize enterprise privacy technologies, including confidential stablecoin transfers, private bond issuance, and cross-chain settlement systems.
- EthSystems aims to help banks use Ethereum by enabling selective transaction privacy while maintaining the security of the public blockchain.
EthSystems, a new blockchain firm focusing on institutional privacy, has officially started after being spun off from the Ethereum Foundation. The new for-profit business seeks to protect sensitive transaction data while assisting banks, asset managers, and other financial organizations in using Ethereum.
EthSystems is backed by several well-known names in the Ethereum ecosystem, including BitMine, SharpLink, Ethereum co-founder Joseph Lubin, SNZ, and other investors supporting blockchain innovation and institutional adoption.
Yesterday was my last day at the Ethereum Foundation.
Today we are launching EthSystems. We build confidential systems for institutional Ethereum.
I’ve spent close to a decade building privacy infrastructure in crypto: p2p messaging at @ethstatus, developing Waku protocols at…
— oskarth (@oskarth) July 14, 2026
The launch comes as the Ethereum Foundation undergoes significant organizational changes. In recent months, the foundation has reorganized several internal teams to better support Ethereum’s expanding role in institutional finance. As part of this restructuring, specialized organizations are being created to focus on different areas of the Ethereum ecosystem.
Among them is EthSystems, co-founded by former Ethereum Foundation researcher Oskarth, who announced his departure from the foundation to launch the new venture focused on building confidential systems for institutional Ethereum.
Co-founded with Motypes and Rymnc, EthSystems builds on nearly a decade of experience in zero-knowledge proofs and crypto privacy infrastructure, aiming to bridge privacy-focused blockchain innovation with the growing needs of institutional finance.
EthSystems Commercializes Ethereum Foundation Privacy Technology
The business intends to market the privacy technology it created while employed by the Ethereum Foundation. The team claims that functioning as a for-profit company will enable it to collaborate with commercial clients more successfully.
The business stated that it will keep creating enterprise-level blockchain privacy solutions. Its offerings include cross-chain settlement systems, private bond issuance, private stablecoin transfers, and open-source protocol specifications that can help big financial institutions.
Privacy remains one of the most significant challenges for banks investigating public blockchain networks. Even though Ethereum provides security and transparency, many financial institutions find it uncomfortable to handle sensitive transactions on a completely public ledger. The need for systems that safeguard private company data without compromising the security and decentralization of public blockchains has grown as a result.
Institutional Adoption Of Ethereum Continues To Gain Momentum
EthSystems thinks this issue can be resolved with the use of their modular privacy architecture. The company intends to develop solutions that would enable authorized participants to exchange specific transaction details while concealing private information from the general public. With this strategy, Ethereum would be better suited for practical financial uses, including digital payments, tokenized assets, and international settlements.
The launch also demonstrates growing institutional interest in blockchain technology outside of cryptocurrency trading. Tokenized bonds, stablecoins, and other blockchain-based financial instruments have attracted more attention from banks and asset managers in recent years. Regulations and privacy concerns, however, continue to be significant obstacles to broader implementation.
The Ethereum Foundation has funded the establishment of additional autonomous groups, such as Ethereum Institutional, which seeks to improve interaction with banks and major financial businesses, and EthLabs, which concentrates on Ethereum research and scalability. It is anticipated that these modifications will provide each organization with a more concentrated role in growing the Ethereum ecosystem
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