Institutions want privacy more than scalability to shift real-world finance onto Ethereum, says EthSystems, a new startup spun out of the Ethereum Foundation this month.
Co-founder Mo Jalil emphasized that nearly all banks and financial entities need confidentiality controls, not necessarily full anonymity. They require precise management of who accesses transaction details and when. Instead of launching a new blockchain, EthSystems offers privacy layers that let sensitive data stay protected while transactions settle directly on Ethereum.
The startup emerged from Ethereum Foundation’s Institutional Privacy Task Force and focuses on building bespoke privacy infrastructure for banks, asset managers, and governments aiming to use tokenized assets and stablecoins. Unlike other projects such as Canton Network, backed by major banks, or Ethereum-native protocols like Aztec and Miden, EthSystems plans to tailor privacy architecture consulting and develop custom solutions where needed, with parts published as open source.
