The self-custodial trading platform plans to replace its Trusted Execution Environment-based model with fully homomorphic encryption as it migrates from the Seismic ecosystem.
Sedona said it is partnering with Fhenix as the self-custodial trading platform migrates to Arbitrum, with plans to replace its existing Trusted Execution Environment (TEE, hardware-based secure computing) security model with fully homomorphic encryption. The companies said the integration is designed to keep user balances, portfolio positions and AI agent spending limits encrypted by default, extending privacy beyond transaction data to more sensitive financial information. Sedona, founded by Tyler Maxwell, said it facilitates spot trading, perpetuals (crypto futures without expiry) and structured products. After completing its move from the Seismic ecosystem to Arbitrum, the platform plans to deploy Fhenix’s infrastructure, shifting from hardware-based trust assumptions to cryptographic guarantees. The companies said fully homomorphic encryption allows computations on encrypted data without revealing it, and under the integrated model users’ balances and positions will remain hidden from AI agents operating inside the system as well as from other parties. Fhenix chief executive officer Guy Itzhaki said Confidential FHE was built for applications such as trading platforms and financial services that need privacy for balances, positions and the operating parameters of autonomous agents. Maxwell said Sedona initially used TEEs because they were the most practical way to deliver privacy, but that fully homomorphic encryption offers a stronger long-term basis for self-custody by reducing trust assumptions. Sedona said the technical integration is ongoing, and did not provide a timeline for the Arbitrum rollout beyond saying it will follow completion of the migration.