The privacy team of the Ethereum Foundation has officially spun off into an independent commercial company named EthSystems. The founders of the new startup are former foundation employees Mo Jalil, Oscar Thoren, and Aryamann Challani, who previously managed the institutional privacy group within the organization. The project has received significant backing from Ethereum co-founder Joseph Lubin, as well as investment firms BitMine and SharpLink. The primary goal of EthSystems is to develop and implement specialized blockchain solutions tailored exclusively for institutional clients. The startup plans to create advanced tools based on zero-knowledge proof cryptography, which will allow major banks and asset managers to execute large-scale transactions on the Ethereum network while keeping the details of their trading positions and confidential client data strictly secret.

The business model of the new company is built on providing paid consulting services and developing custom systems to meet the specific needs of the corporate sector. Representatives of EthSystems explained that for full and trustworthy collaboration, large businesses require a reliable commercial counterparty, rather than a non-profit foundation like the Ethereum Foundation. However, the developers emphasized that the startup will remain committed to open-source principles and will continue to publish all technical specifications of its protocols in the public domain. EthSystems CEO Mo Jalil noted that privacy has ceased to be just an optional feature and has become a critical market requirement. In his words, without reliable data protection, large financial organizations will simply not dare to make a full transition into the blockchain ecosystem.

Prior to the official public launch, the team spent a full year actively working on open-source code. During this time, the developers managed to present ready-made protocols for executing private transfers, secure bond issuance, and creating decentralized digital identity systems. The launch of EthSystems occurred against the backdrop of a massive restructuring of the Ethereum Foundation itself. Last month, the foundation made the difficult decision to cut twenty percent of its staff and reallocate remaining resources across five main strategic directions. Alongside EthSystems, other independent commercial structures, such as EthLabs and Ethereum Institutional, have begun to emerge in the ecosystem, signaling the project's transition to a new stage of maturity. It is worth recalling that earlier in June, a proposal was published on the Ethereum Research forum regarding the redirection of up to ten percent of validator staking rewards to fund the further development of the ecosystem.