Mo

Today we're launching EthSystems. We build confidential systems for institutional Ethereum. Institutions want to use Ethereum, but one of the biggest problems is the lack of built-in, modular privacy tools. We were the Ethereum Foundation's Institutional Privacy Task Force (IPTF) for the past year. We had hundreds of conversations with central banks, regulators, tier-one banks, and asset managers, shipping open source work the whole time. Wall Street has found crypto as an asset class, but not yet as commercial infrastructure. Institutions want to run real flows on Ethereum: stablecoins, tokenized assets, settlement. These are businesses with billions of dollars on the line, and no bank will operate in full public view. On a public ledger, confidentiality is the hard part: each party to a transaction should see what it has a right to see, and nothing more. We have a year of proof of work: private bonds, confidential stablecoin transfers, private settlement across chains, the Ethereum Privacy Map, and more. All with protocol specs and security properties, at our website. We've spent a decade working on privacy in crypto. We know there's no silver bullet. Different use cases need different systems, each designed, specified, and hardened properly, and someone has to do that work. That's why EthSystems exists. We're an independent, for-profit company, backed by long-term Ethereum-aligned investors. This is a decade-long transition, and we aren't going anywhere. If you're an institution that wants to build on Ethereum, talk to us. We're hiring: BD in New York, protocol engineers, ops: join@ethsystems.org

The engineer who spent years working in and around Ethereum, is explaining it with Mumbai’s dabbawalas. @_rymnc, Director of Engineering at @eth_systems, was part of the Ethereum Foundation’s Institutional Privacy Task Force before the team spun out as EthSystems this year. He’s taking the stage on The Lid Leaks: what Mumbai’s dabbawalas teach us about private finance. A system the whole city trusts, used to explain what privacy on Ethereum needs to get right. 4 Nov · Mumbai, inside Devcon

We pushed formal verification through our shielded pool, from the written spec down to the bytecode running on Sepolia. Each layer got its own tool: Lean for the model, circuits and hash, Halmos and Kontrol for the contract, Aeneas and Verus for the wallet, and byte-for-byte rebuilds for the verifiers and the deployment. What we proved, what we found and what we still assume, in the thread below.

How Institutions Are Unlocking the Full Potential of Ethereum Infrastructure In this panel moderated by @mcamarda0, leaders across Ethereum infrastructure—including @KimonSh (@LidoFinance), @vnovakovski (@Lighter_xyz), @motypes (@eth_systems), @_julianma (@ethlabs_org ), and @mpfzajac (@Nethermind)—explored how institutional adoption is accelerating performance, privacy, and security upgrades across L1 and L2 layers. Panelists highlighted advancements such as faster slot times, synchronous L1/L2 composability, node-level compliance frameworks (e.g., Nethermind’s PoC with UBS), and bespoke ZK-privacy primitives for global regulators, positioning Ethereum as the unified, post-quantum settlement layer for global finance.

Our September community update starts with the specs behind our shielded pools, and it’s now public. How our pools work was defined by the code until now. The specs write it down as a standard anyone can implement or audit against, released under CC0, and our own proof of concept now conforms to them. Also this month: two new building blocks, two people joining the team, four talks, and more collaborations with @lfdecentralized and @0xMiden.

Most banks started on permissioned networks, and that did real work for hedging the risk and building capability. @motypes 's EthConnect 2026 keynote was about what comes after, because the architecture chosen at step one sets the cost of step three, and the wall on the way to a public network is almost always confidentiality. Confidential is not anonymous. It is control over who sees what, when and how: the counterparty sees the trade, everyone else sees only a proof that it is valid, the operator sees nothing, and the regulator holds a disclosure key. The same question ran through both panels. Good conversations with @Sharplink , @LidoFinance , @ETHGasOfficial , @Offchain , @zama , @axelar and @FourPillarsFP , and our thanks to @0xundefined_ for hosting. Coverage in threads 👇🏻

Very cool to get coverage in the 🇰🇷 Korean press. Wish it looked slightly less like we’re wanted for crypto tax fraud.

We're glad to welcome David (@david__nunez) to EthSystems as Protocol Engineer. David has spent more than 15 years in cryptography and information security, the last 8 in Ethereum and web3. Most recently he was CTO of NuCypher, leading TACo, an access control layer built on threshold cryptography, and he built the staking and governance smart contracts for Threshold Network. He holds a PhD in Cryptography from the University of Málaga, and his research has been published at CRYPTO, AsiaCCS and in the Journal of Cryptology. At EthSystems, David joins as Protocol Engineer. He'll work out which cryptographic building blocks hold up against institutional requirements, how they compose, and what they cost to run, and turn that into reference implementations institutions can test themselves. Welcome, David. Let's build confidential systems on Ethereum for institutions.

Ethereum Institutional Summit 2026 Sep 25, Tokyo. 11 sessions done. Thank you to all who spoke, sponsored, supported and attended. Japan's first Ethereum-focused, invitation-only summit for financial institutions & institutional investors eis.fracton.ventures #EIS2026

Thank you Michael Mosier, Rebecca Rettig and @malekanoms for putting this together. For those who haven’t read it: Regulated financial institutions do not need to permission the underlying blockchain network to meet financial-integrity obligations. In the U.S. context, the paper argues that AML, sanctions and related controls can sit at the application layer — where the institution controls the customer, product and transaction — rather than requiring a permissioned validator set. That maps closely to how we think about the institutional digital-asset capability framework at @eth_systems . Much of the industry’s work has started near the bottom: permissioned networks, infrastructure, custody, issuance and controlled pilots. That has been valuable. Institutions have used it to hedge risk, build capability and familiarise teams with governance and controls. But we think an increasing share of the value sits higher up the stack. Who is eligible? Which assets can they access? What must remain confidential? What must be proven, and to whom? Can an asset be settled, financed or posted as collateral without exposing sensitive information? If those controls can be implemented reliably at the application layer, a bank does not necessarily need to own or operate every underlying network. Permissioned networks may remain right for some use cases. But as confidentiality and controls are adopted at scale on public infrastructure, operating across multiple closed networks may become more complex and cost-prohibitive. These primitives, as discussed in the paper, are increasingly implementable — not theoretical. EthSystems’ work includes: • private identity and eligibility • confidential balances and transfers • confidential payments, DvP and repo • ZK proofs of collateral sufficiency • private read and transaction submission • participant/operator privacy • selective disclosure For example, borrowing against a tokenised MMF: prove eligibility without revealing identity publicly, lock the position privately, prove the haircut is met without revealing the position, settle atomically, and give authorised supervisors a scoped view. That is the direction we find most interesting: permissionless infrastructure underneath, institutional controls above it. If you’re working on a tokenised-asset, money or financing workflow and want to see how it could be done confidentially and with controls on Ethereum — bring us one use case. We’d like to pressure-test it against the actual requirements.

AI agents are creating a new financial universe. They will rewire $4 trillion of finance fees by 2035 according to a new estimate from @Sharplink. The biggest winners will be consumers. 🧵

When we launched EthSystems we said each use case needs its own system, designed, specified, and hardened properly, and that someone has to do that work. Our specs site is now public: specs.ethsystems.org Starting small: a shielded pool for confidential payments, an attestation-gated profile of it, and the process behind both. Each spec states what the protocol does, what it assumes, and what it guarantees. This means engineers, auditors, and regulators can work from the same document.

[Ethereum Institutional Summit 2026] Speaker announcement EthSystems ( @eth_systems ) Mo Jalil ( @motypes ) Sep 25, 2026, Tokyo eis.fracton.ventures Japan's first Ethereum-focused, invitation-only summit for financial institutions & institutional investors. #EIS2026

We’re glad to welcome Kaushal (@liftlines) to EthSystems as Managing Director. Kaushal brings 20+ years across financial services, technology strategy and product, followed by five years working directly in Ethereum. Since 2021, he has led commercial and ecosystem growth for @ethnimbus, alongside privacy-focused infrastructure including Waku and Keycard, driving multi-fold growth in adoption, and helping establish Develp GmbH as an institutional-grade staking infrastructure provider. At EthSystems, he’ll lead our work with banks, asset managers and financial market infrastructure providers as they move from digital asset experimentation into production. Our focus is on how institutions can use Ethereum while meeting requirements around confidentiality, selective disclosure, interoperability, compliance and operational control. Kaushal joins as we build on the open-source research, reference architectures and implementation starter kits developed through our work at the Ethereum Foundation. Welcome, Kaushal. Let’s build confidential systems for institutional Ethereum 🤝🏻

“What institutions are looking for?” it’s right there.

NEW EPISODE - Wall Street Wants Ethereum. Privacy Is the Bottleneck Institutions want to move onchain, but public-by-default finance still exposes too much. @eth_systems co-founders @motypes and @oskarth join @TrustlessState to break down why privacy may be Ethereum’s biggest institutional unlock, what banks and asset managers are actually asking for, and how private institutional rails could eventually plug into DeFi. CHAPTERS --- ETH Systems The Founders Institutional Privacy Real-World Use Cases From Bespoke to Scalable Building the Product Institutions Are Coming The Future of Institutional DeFi Privacy vs Transparency What Ethereum Can Do? Cypherpunks and Institutions

【 Announcement 】 Announcing Ethereum Institutional Summit 2026 — an invite-only conference for institutional investors, financial institutions, and listed companies. Tokyo, September 25. Japan's first Ethereum-focused summit built for institutions. First 5 speakers announced 👇

A shielded pool hides who paid whom, and how much. Institutions need that. Their supervisors need almost the opposite: proof that every payment got screened before it moved. Today you pick one. Today's compliant-privacy designs answer with provenance. Deposits get screened at the door, and a withdrawal carries a proof that the funds don't trace to anything flagged, or that they came from a vetted set. That answers a real question: where did this money come from? Supervisors ask another one. Did screening run on every payment that left? A boundary check can't answer that, because payments inside the pool never touch the boundary. We tried an alternative design where the answer is yes by construction.

Gateway and @eth_systems are collaborating to advance private, sovereign onchain finance for institutions. There is a reason this matters now. Institutions have already found digital asset as an asset class and are already looking at public rails for stablecoins, tokenized assets, settlement, collateral, and other financial workflows. But serious financial activity cannot operate in full public view. Positions, counterparties, transaction flows, access rules, and internal business logic require confidential infrastructure. That is where the next institutional layer of Ethereum begins.