EthSystems launches to build institutional privacy on Ethereum

EthSystems launched on July 14, 2026 as a for-profit company building privacy and compliance technology for institutional users of Ethereum. Backers include Bitmine Immersion Technologies, Sharplink, Ethereum co-founder Joe Lubin and Asia-focused investor SNZ.

The firm was founded by Mo Jalil, Oskar Thorén and Aaryamann Challani, who led the Ethereum Foundation’s Institutional Privacy Task Force for a year. While at the Foundation the team held hundreds of conversations with central banks, regulators, tier-one banks and asset managers.

EthSystems says it will enable banks and asset managers to transact on Ethereum without exposing trade details, client identities or positions. The founders argue financial firms will not run significant commercial flows on a fully public ledger unless confidentiality is provided so each party sees only the information it has a right to see.

At launch EthSystems published a year of open-source work and proofs of concept. The released prototypes include private bonds, confidential stablecoin transfers, private cross-chain settlement, hardened shielded pools and an Ethereum Privacy Map that catalogues institutional requirements.

The company plans to continue publishing open-source research while offering paid consulting services such as workshops, architecture reviews, protocol specifications and production deployments for clients that need both privacy and regulatory compliance.

Investors backing EthSystems hold large Ethereum treasuries. Bitmine holds roughly 5.7 million ETH and Sharplink about 888,000 ETH. In a launch statement Bitmine chairman Tom Lee wrote that “the next $100 trillion of assets won’t migrate on-chain without it.” Joe Lubin contrasted the team’s approach with earlier offerings he described as permissioned systems with extra steps.

EthSystems is the third team to spin out of the Ethereum Foundation this summer and the first to form a for-profit company. Two other teams created non-profit organisations: Ethlabs, focused on protocol research, and Ethereum Institutional, focused on outreach to banks and asset managers. The Foundation reduced staff by about 20% in June and wound down an in-house privacy and scaling research unit during a broader reorganisation.

The founders said they left the Foundation on good terms and expect EthSystems to focus on applied privacy engineering. Jalil wrote on the company account that privacy is “the difference between Ethereum holding billions today and running trillions tomorrow.”

EthSystems cited market figures to frame demand: about $16 billion in tokenized real-world assets and $159 billion in stablecoins on-chain. The company positions its services for clients that require transaction confidentiality alongside regulatory oversight.