Ethereum startup EthSystems bets privacy is key to getting banks on public blockchains
EthSystems is a new startup focused on developing privacy infrastructure to help financial institutions utilize public Ethereum blockchains. The company aims to provide confidential transaction controls while maintaining the benefits of decentralized ledger technology.
Why it matters
Privacy solutions are a major hurdle for institutional adoption of blockchain technology in the global financial sector.
The company, which emerged from the Ethereum Foundation's Institutional Privacy Task Force, is building confidentiality infrastructure for banks, asset managers and governments looking to use Ethereum for tokenized assets, stablecoins and other financial applications.
Rather than creating an entirely new blockchain, EthSystems helps institutions deploy privacy technologies that allow sensitive transaction data to remain confidential while still settling on Ethereum.
"Almost every single financial institution requires some level of confidentiality," co-founder Mo Jalil told CoinDesk in an interview. "Confidentiality doesn't necessarily mean something has to be anonymous or hidden. There just needs to be controls over who sees what, when and how."
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