Ethereum Foundation spinout EthSystems targets banks with blockchain privacy technology

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"Commercial engagements need a commercial counterparty," the company said in a post on X, explaining its decision to operate as a for-profit business. "The model is simple: we continue the work we've been doing, only now we charge for it." The launch reflects growing institutional interest in using public blockchains for financial infrastructure beyond cryptocurrency investing. While firms have increasingly embraced tokenized assets and stablecoins, many remain reluctant to transact on fully transparent public ledgers, creating demand for privacy-preserving infrastructure. EthSystems argues that confidentiality is one of the key barriers preventing banks and asset managers from moving real-world financial flows onto Ethereum. The company said its approach will focus on modular privacy systems that allow participants to selectively disclose transaction information while maintaining Ethereum's security guarantees. The company is also backed by BitMine, SharpLink, Ethereum co-founder Joseph Lubin, SNZ and other Ethereum-focused investors.

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EthSystems, a spinoff from the Ethereum Foundation, has officially introduced blockchain technology designed to address privacy concerns in the financial sector. This technology focuses on bridging the gap between the transparency of public blockchains and the security requirements of banks. It is expected to accelerate blockchain adoption by institutional investors, serving as a key driver for Ethereum's integration into the mainstream financial system.

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