Ethereum startup EthSystems bets privacy is key to getting banks on public blockchains

TechEthereum startup EthSystems bets privacy is key to getting banks on public blockchainsEthSystems, which spun out of the Ethereum Foundation earlier this month, is focused on building privacy infrastructure for banks and other financial institutions.By Margaux Nijkerk|Edited by Sheldon Reback Jul 28, 2026, 3:46 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowEthereum Foundation spinout EthSystems is building privacy infrastructure for banks and other financial institutions, arguing that confidentiality, not scalability, is the biggest barrier to moving real-world financial activity onto public Ethereum.Founder Mo Jalil said institutional demand has shifted from experimental blockchain pilots to production deployments, with banks increasingly looking for privacy-preserving tools that enable them to transact on public blockchains while meeting regulatory requirements.EthSystems, a startup spun out of the Ethereum Foundation earlier this month, is betting that privacy, not scalability, is the biggest obstacle preventing institutions from moving financial activity onto public blockchains.The company, which emerged from the Ethereum Foundation's Institutional Privacy Task Force, is building confidentiality infrastructure for banks, asset managers and governments looking to use Ethereum for tokenized assets, stablecoins and other financial applications. Rather than creating an entirely new blockchain, EthSystems helps institutions deploy privacy technologies that allow sensitive transaction data to remain confidential while still settling on Ethereum."Almost every single financial institution requires some level of confidentiality," co-founder Mo Jalil told CoinDesk in an interview. "Confidentiality doesn't necessarily mean something has to be anonymous or hidden. There just needs to be controls over who sees what, when and how."EthSystems is far from the only company focused on inst…

Ethereum startup EthSystems bets privacy is key to getting banks on public blockchains

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