Ethereum Foundation Spin Out Launches EthSystems for Institutional Privacy
The former Ethereum Foundation Institutional Privacy Task Force has launched EthSystems, a new for-profit company focused on developing confidential blockchain solutions for institutional users. The startup is backed by Ethereum co-founder Joe Lubin, along with Bitmine and SharpLink, two of the largest Ethereum treasury firms. The company aims to help banks, asset managers, and regulated financial institutions use Ethereum while protecting sensitive business data.
Founded by Former Ethereum Foundation Leaders
EthSystems was established by Mo Jalil, Oskar Thorén, and Aaryamann Challani, who previously led the Ethereum Foundation’s Institutional Privacy Task Force. The founders said the new business structure allows them to provide commercial consulting and customized technology for enterprise clients while continuing the work they started at the Ethereum Foundation.
Privacy Technology for Institutional Ethereum Adoption
The company will develop confidential systems that enable organizations to perform transactions on Ethereum without revealing trade details, client identities, or financial positions. EthSystems plans to use advanced privacy technologies, including zero-knowledge (ZK) cryptography, to improve security while maintaining the benefits of Ethereum’s public blockchain. The team also confirmed it will continue contributing to open-source projects and publish technical specifications for the wider Ethereum community.
Launch Follows Major Ethereum Foundation Changes
The launch comes as the Ethereum Foundation continues restructuring its operations. In recent months, the organization reduced its workforce and shifted its focus toward privacy, security, censorship resistance, and open-source development. During the same period, independent organizations such as EthLabs and Ethereum Institutional also emerged with support from Joe Lubin, Bitmine, and SharpLink to strengthen Ethereum’s ecosystem.
Mission to Accelerate Institutional Adoption
Before launching EthSystems, the founders worked with central banks, regulators, and financial institutions on blockchain privacy initiatives, including confidential stablecoin transfers, private cross-chain settlements, and zero-knowledge-based financial products. The company said its mission is to help institutions build confidential systems on public Ethereum without compromising the blockchain’s transparency, security, and decentralization, making enterprise adoption easier and more practical.
