TLDREthSystems believes privacy is the main barrier stopping banks from using public blockchains.The startup emerged from the Ethereum Foundation’s Institutional Privacy Task Force.EthSystems helps institutions protect sensitive transaction data while settling activity on Ethereum.The company will advise clients, build custom privacy systems, and publish open-source research.EthSystems plans to work with existing privacy projects instead of creating a new blockchain.Ethereum startup EthSystems has made privacy the center of its plan to bring banks and other institutions onto public blockchains. The company believes confidentiality, rather than network speed, remains the main barrier to institutional use of Ethereum.The startup emerged from the Ethereum Foundation’s Institutional Privacy Task Force earlier this month. It now operates as a for-profit company focused on banks, asset managers, governments, stablecoins, and tokenized financial assets.EthSystems Targets Institutional Privacy NeedsEthSystems helps institutions add privacy controls while settling transactions on Ethereum. Its systems aim to protect sensitive financial data without removing the transparency and security offered by a public blockchain.Co-founder Mo Jalil said financial institutions need control over who can view transaction details. The company does not treat confidentiality as full anonymity. Instead, it supports limited access based on rules.The startup does not plan to build a new blockchain or replace current privacy tools. It will advise clients, design privacy systems, build custom infrastructure, and publish open-source research.EthSystems expects to work with projects such as Aztec, Miden, and other privacy providers. It will select and connect tools based on each institution’s legal and business needs.Demand Moves Beyond Blockchain TestsThe team previously built proof-of-concept systems inside the Ethereum Foundation. Financial institutions later asked whether they could pay the group to turn those tests into working products.The foundation could not support that type of commercial work. The move to a for-profit structure now allows EthSystems to charge clients, fund development, and meet corporate procurement rules.Jalil said discussions have shifted from innovation teams to business units that manage trading and assets. These teams now want to move real financial activity onto public blockchains.EthSystems says institutions no longer need basic proof that blockchain can support finance. They need privacy systems that meet internal controls, regulatory duties, and data protection rules.The company sits alongside other groups created during the Ethereum Foundation’s wider restructuring. EthLabs focuses on protocol work, while Ethereum Institutional handles enterprise coordination.EthSystems will focus only on privacy and cryptography for institutional users. Its strategy rests on helping banks use Ethereum without exposing sensitive data to every network participant.The post Ethereum Startup EthSystems Targets Institutional Blockchain Privacy appeared first on Blockonomi.