The phrasing is candid to the point of near-satire: “in practice, this means continuing much of the work we were already doing, only now we charge for it.” That is how the founding team of EthSystems described its business model - an admission that speaks volumes about what is happening inside the Ethereum Foundation.
EthSystems officially launched on Tuesday (July 14, 2026), backed by Bitmine, SharpLink, and Consensys CEO Joe Lubin. The for-profit company will build confidential infrastructure for banks, asset managers, and other regulated institutions utilizing public Ethereum. It was founded by three former Ethereum Foundation employees: Mo Jalil, Oskar Thoren, and Aaryamann Challani - all of whom previously worked in the Foundation’s Institutional Privacy Task Force.
Selling Privacy to Institutions
EthSystems focuses on privacy systems powered by zero-knowledge cryptography, a technology that can verify transactions without exposing underlying data such as trading positions, transaction details, or client identities. This is precisely the kind of assurance major financial institutions require before deploying operations on a public network.
Its business model centers on tailored, paid consulting to help institutions overcome the toughest hurdles in Ethereum adoption. Their track record is well-established: during their time at the Foundation, the founding team worked on zero-knowledge private bonds, confidential stablecoin transfers, private cross-chain settlements, and the Ethereum Privacy Map project.
Born from a Major Reorganization
What gives this launch greater significance is its backdrop. EthSystems emerged amid a massive restructuring at the Ethereum Foundation. On June 23, 2026, the Foundation cut 54 jobs - roughly 20% of its workforce - following an extensive review of spending, staffing, and long-term responsibilities, subsequently reorganizing into five divisions: protocol, access, users, community, and institutional.
In July, the Foundation also disbanded the Protocol Support team, which had been coordinating All Core Developers meetings, network upgrade tracking, Ethereum Improvement Proposal support, Forkcast, and the Ethereum Protocol Fellowship. Mario Havel, who worked on the team for over five years, confirmed via X that he remains at the Foundation, but the entire Protocol Support team has been dissolved.
An Ecosystem Branching Out
EthSystems is not alone. It joins two other independent organizations also backed by Bitmine, SharpLink, and Lubin: Ethereum Institutional and EthLabs. Lubin previously told The Block that he anticipated at least three spin-off organizations would emerge from the Foundation as its focus narrows to the CROPS framework - censorship resistance, open-source development, privacy, and security.
Behind it all, the Foundation’s protocol division retains responsibility for core Ethereum technology, including privacy, security, and decentralization, while developers continue working on the Glamsterdam upgrade. What remains compelling to watch is the deeper question: as core expertise from a non-profit foundation shifts to commercial entities, is Ethereum maturing into a more sustainable model - or is it losing something that was once provided for free?
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
