Fhenix Acquires Sunscreen to Advance Fully Homomorphic Encryption for Web3

2 hour ago 2 sources neutral

Key takeaways:

  • Fhenix’s acquisition of Sunscreen consolidates FHE research, signaling institutional maturity in privacy tech.
  • Institutional demand for privacy in tokenized assets and AI accelerates FHE adoption on Ethereum L2s.
  • Quantum-resistant cryptography integration reduces long-term risk, attracting investors to privacy-focused protocols.

Fhenix, a full-stack privacy infrastructure platform based on fully homomorphic encryption (FHE), has acquired Sunscreen, one of the earliest Web3 teams focused on FHE systems. The deal brings Sunscreen founder Ravital Solomon into Fhenix as the head of research, where she will lead work on advanced cryptography including TFHE, BFV, encrypted computation, and post-quantum security.

Sunscreen, which launched publicly in 2022, contributed open-source FHE compiler tools, grant programs, and expanded into zero-knowledge systems and threshold encryption. Solomon’s expertise in lattice-based post-quantum cryptography and encrypted smart contract design will now strengthen Fhenix’s development of its CoFHE encrypted computation layer for EVM applications.

The acquisition signals a shift toward making encrypted computation a foundational layer for institutional blockchain adoption, as stablecoins, tokenized real-world assets, and AI systems increasingly demand on-chain privacy. Fhenix is building its stack across Ethereum, Arbitrum, and Base, aiming for scalable, quantum-resistant privacy infrastructure.

“FHE is entering a new phase. The conversation is no longer about whether encrypted computation works, but about making it scalable, practical and available across ecosystems,” said Fhenix founder Guy Zyskind. The combined team will accelerate R&D in threshold FHE decryption, DBFV exact arithmetic, and scalable encrypted computation.

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