This launch follows significant organizational changes at the Ethereum Foundation.
By Margaux Nijkerk|Edited by Cheyenne Ligon Jul 14, 2026, 2:31 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- EthSystems, a for-profit startup formed by ex-members of the Ethereum Foundation's Institutional Privacy Task Force, aims to create privacy infrastructure for banks, commercializing previous work done within the foundation.
- This is one of several recent spinouts from the Ethereum Foundation as it restructures, joining the ranks of EthLabs and Ethereum Institutional.
A group of former researchers from the Ethereum Foundation has established EthSystems, a for-profit entity dedicated to creating privacy solutions for financial institutions utilizing Ethereum.
This startup is a product of the Ethereum Foundation's year-long focus on developing privacy technologies aimed at enterprise applications, involving engagement with central banks, regulators, global banks, and asset managers.
The creation of EthSystems coincides with a significant organizational transformation at the Ethereum Foundation, which has faced scrutiny regarding its leadership and strategy, particularly in relation to its support for Ethereum's growing institutional clientele. As a result, several teams have transitioned into independent organizations.
These new entities include EthLabs, a nonprofit focused on advancing Ethereum protocol research and scaling, and Ethereum Institutional, a nonprofit aimed at coordinating engagement with large financial firms. This restructuring aims to redistribute responsibilities previously managed by the foundation into more specialized organizations.
EthSystems intends to commercialize its prior work within the foundation, which includes confidential stablecoin transactions, private bond issuance, cross-chain settlement systems, and open-source protocol specifications.
According to the company, "Commercial engagements need a commercial counterparty," which is why it chose to operate as a for-profit entity. They added, "The model is simple: we continue the work we've been doing, only now we charge for it."
This launch indicates a rising institutional interest in leveraging public blockchains for financial infrastructure beyond mere cryptocurrency investments. While there is growing acceptance of tokenized assets and stablecoins, many institutions hesitate to engage with fully transparent public ledgers, thus increasing the need for privacy-enhancing infrastructure.
EthSystems contends that confidentiality is a major obstacle preventing banks and asset managers from transferring real-world financial flows onto Ethereum. The company plans to implement modular privacy systems that enable participants to selectively reveal transaction details while upholding Ethereum's security standards.
Additionally, the firm is supported by investors including BitMine, SharpLink, Ethereum co-founder Joseph Lubin, SNZ, and other Ethereum-centric investors.
Read more: Ethereum Institutional launch draws support from across the Ethereum ecosystem
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CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
By CoinDesk ResearchJul 13, 2026CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
Why it matters:
CEX trading volumes rose for the first time in five months in June, with spot climbing 15.3% to $1.11T and RWA perpetual volumes surging to a record $311B.
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