Ethereum veterans launch EthSystems to bring confidential infrastructure to institutions
A new for-profit venture called EthSystems has launched, aiming to help banks, asset managers and regulated institutions use public Ethereum without exposing sensitive information. The startup was spun out of the Ethereum Foundation and is led by former Foundation staffers Mo Jalil, Oskar Thorén and Aaryamann Challani — all alumni of the Foundation’s Institutional Privacy Task Force.
Backers include major Ethereum treasury firms Bitmine and SharpLink, and Consensys founder and Ethereum co‑founder Joe Lubin. The trio says EthSystems will build confidential infrastructure for institutional users on public Ethereum, primarily using zero‑knowledge cryptography to verify transactions without revealing underlying data such as trading positions, client identities or transaction details.
What EthSystems will do
- Deliver bespoke consulting to solve institutional blockers to Ethereum adoption — the company calls this its core business model.
- Continue to publish protocol specifications and contribute to open‑source projects.
- Build privacy systems and proofs of concept in areas institutions care about, using tools like zero‑knowledge proofs.
The founders said they’ve already held hundreds of discussions with central banks, regulators and financial institutions while at the Foundation. Their prior work included prototypes for private bonds using zero‑knowledge proofs, confidential stablecoin transfers, private cross‑chain settlements and an “Ethereum Privacy Map.” EthSystems’ stated mission: help institutions build confidential systems on public Ethereum “without giving up what makes Ethereum worth using.”
Why it matters now
EthSystems’ emergence follows a major reorganization at the Ethereum Foundation. On June 23 the Foundation announced it would cut 54 jobs — roughly 20% of staff — after reviewing spending, staffing and its long‑term responsibilities. The Foundation reorganized its work into five divisions (protocol, access, users, community and institutional activity) and later dissolved the Protocol Support team in July, a group that had coordinated core developer meetings and tracked network upgrades. One former Protocol Support member, Mario Havel, said he remains at the Foundation while confirming the rest of the team was dissolved.
EthSystems is not the only independent organization formed amid the Foundation’s restructuring. It joins Ethereum Institutional and EthLabs — two other entities backed by Bitmine, SharpLink and Lubin. According to public commentary from Lubin, he expected multiple organizations to emerge from the Foundation’s reprioritization, with different tradeoffs and mandates. EthLabs is slated to take on heavy protocol R&D, while Ethereum Institutional is positioned as a neutral contact point for financial firms.
The Ethereum Foundation says the reorganization lets it focus staff and resources on work it believes only it can perform — particularly core responsibilities around privacy, security, decentralization and censorship resistance. Meanwhile, core protocol development continues: Ethereum developers are working on the Glamsterdam upgrade, which targets block construction, data access and network performance.
Bottom line: EthSystems aims to be the commercial arm that helps regulated players leverage public Ethereum with institutional‑grade confidentiality, while remaining part of the broader ecosystem of independent groups and Foundation teams reshaping how Ethereum supports large financial actors.
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