EthSystems targets institutional Ethereum privacy after spinout from Ethereum Foundation

EthSystems, a startup spun out of the Ethereum Foundation earlier this month, is positioning institutional privacy as the key hurdle to broader use of Ethereum by banks, asset managers and governments. The company emerged from the Ethereum Foundation's Institutional Privacy Task Force and is building confidentiality infrastructure intended to let institutions keep sensitive transaction data private while still settling transactions on Ethereum. Co-founder Mo Jalil said financial institutions generally need controlled visibility rather than full anonymity, arguing that confidentiality means managing who can see information, when and how. Instead of launching a separate blockchain, EthSystems plans to help customers design privacy architecture, build custom systems where needed and publish open-source research on institutional blockchain adoption. The company enters a field that already includes Canton Network and Ethereum-focused privacy efforts such as Aztec and Miden. EthSystems says its approach is to work alongside those projects rather than replace them, recommending and integrating tools based on institutional needs. The startup is one of several groups formed through a broader Ethereum Foundation restructuring that shifted responsibilities outside the nonprofit. Jalil said the move to a for-profit model was prompted by institutions asking the team to turn proof-of-concepts into production deployments, with the commercial structure making it easier to fund the work and navigate procurement at large financial firms.