The first live implementation of Ethereum’s evolving privacy roadmap brings institutional-grade confidentiality to the blockchain.
Rayls, the blockchain for banks, accredited by JP Morgan Kinexys and the Central Bank of Brazil, today announces the official launch of Enygma, a quantum-private, institutionally compliant privacy preserving framework for Ethereum and EVM-compatible blockchains. Enygma represents a major milestone for institutional DeFi and an answer to the ongoing question around on-chain privacy for financial institutions, marking the first working implementation of Ethereum’s long-awaited privacy roadmap.
The launch comes at a pivotal moment for the Ethereum ecosystem, as core developers and the community focus on maturing the network’s native privacy capabilities. In particular, Enygma’s feature set aligns closely with the priorities outlined in Ethereum co-founder Vitalik Buterin’s recently proposed “Maximally Simple Privacy” roadmap — with Rayls translating those concepts into a fully live, operational and scalable solution.
A New Chapter for Onchain Privacy
Rayls’ Enygma directly addresses one of the longest-standing gaps in decentralized finance: enabling confidential transactions and anonymous asset exchange, without sacrificing performance, composability, or compliance, while ensuring long-term quantum privacy. The privacy protocol is already live on the Rayls network and utilises the design of both public chains and private institutional subnets to facilitate privacy, security and compliance.
Building on its experience in the Brazil Central Bank’s Drex CBDC development program, Rayls is positioning Enygma as the next step in institutional-grade privacy preserving tooling. The solution is fully compatible with existing EVM infrastructure, eliminating the need for dedicated privacy chains or specialized wallets.
“Rayls is built so people can transact in private. Privacy is non-negotiable, particularly when it comes to Banks and Financial Institutions dealing with a regulatory environment,” said Marcos Viriato, CEO of Parfin. “With Enygma, the industry now has a proof point for how privacy, programmability, and compliance can work together at scale.”
Read More: Global Fintech Interview with Beth McCoy, President of RewardOps
Privacy by Default
At its core, Enygma combines advanced zero-knowledge proofs and homomorphic encryption to enable private transactions and shielded balances across a range of Ethereum token standards, including ERC-20, ERC-721, and ERC-1155.
Unlike prior approaches that focused on isolated privacy protocols or off-chain mixers, Enygma is directly embedded into the transaction layer, allowing both institutions and individual users to conduct private payments and atomic asset swaps natively on Ethereum-compatible networks.
The system also introduces an optional, auditor-centric compliance model. Institutions, dApps, or the operator of the privacy preserving solution can designate an independent auditor to oversee encrypted transaction data through Enygma’s “God View” feature, providing selective regulatory visibility without compromising the broader network’s privacy.
Setting the Benchmark for Ethereum’s Privacy Roadmap
Enygma’s architecture directly addresses the four pillars outlined in Ethereum’s ongoing privacy discussions:
- Private payments as the default state for users
- Anonymization of cross-application activity
- Encrypted read access for onchain data queries
- Network-level anonymity, eliminating the need for special-purpose privacy wallets.
By delivering these capabilities in a live production environment, Enygma signals the maturity of Ethereum’s privacy ecosystem and highlights the potential for regulated, privacy-first applications across decentralized finance.
Looking ahead, Rayls Foundation has committed to open-sourcing both Enygma and the Rayls Privacy Node, the high-performance, EVM-compatible institutional infrastructure, later this year. This move will enable developers, institutions, and Ethereum ecosystem contributors to deploy Enygma’s privacy features across their own applications and networks.
Rayls is also collaborating with the broader Ethereum community on wallet integration, bridge tooling for private assets, and support for smart contract privacy patterns, bringing its vision of programmable, auditable, and future-proofed privacy closer to reality.
Read More: Finance Leaders Reveal The Hidden Costs of Legacy Expense Management Systems
[To share your insights with us, please write to psen@itechseries.com ]
