Wall Street’s Influence on Ethereum’s Privacy Advancements
As we progress through 2025, the intersection of Wall Street and blockchain technology is becoming increasingly significant, particularly concerning the privacy features of Ethereum. According to Danny Ryan, co-founder and President of Etherealize, the financial sector’s needs are set to propel advancements in Ethereum’s privacy capabilities. Ryan emphasizes that as financial institutions engage more with cryptocurrencies, the demand for privacy will become paramount.
“The market does not, and cannot, function fully in the clear,” Ryan stated in a recent interview with Decrypt. He pointed out that for broad adoption of blockchain technology, the idea that “everyone sees everything all the time” is simply impractical. This sentiment reflects a growing recognition that traditional privacy standards must evolve alongside the adoption of on-chain solutions.
Recently, Etherealize announced the successful closure of a $40 million funding round, aimed at enhancing Ethereum’s infrastructure for trading and settling tokenized assets. This initiative will heavily utilize zero-knowledge (ZK) proofs—a cryptographic method that allows one party to prove they know a value without revealing the value itself. ZK proofs are becoming crucial for maintaining privacy in public blockchain transactions, where user activities are otherwise transparent.
Despite the increasing scrutiny from regulatory bodies, such as the U.S. government’s recent actions against coin-mixing services like Tornado Cash and Samourai Wallet, Ryan suggests that Wall Street’s integration into the crypto space could act as a catalyst for advancing privacy measures. He argues that as institutions demand enhanced privacy features, these advancements will likely benefit everyday users as well.
“As we begin to upgrade these markets, institutions will demand privacy, and we’ll move the needle forward in terms of practical, applied and compliant privacy,” Ryan explained.
The concept of ZK proofs is not new; it has been instrumental in the development of privacy-focused cryptocurrencies such as Zcash. Ethereum’s ecosystem has invested hundreds of millions of dollars into ZK-powered networks, indicating a strong commitment to enhancing privacy. However, some companies are exploring alternative methods to address privacy concerns, such as Tempo, a blockchain incubated by Stripe and Paradigm, which includes built-in privacy features.
Another noteworthy project is Arc, a layer-1 network being developed by stablecoin issuer Circle, expected to incorporate “selectively shielded balances and transactions.” These innovative approaches suggest that the push for privacy in cryptocurrency may not be solely reliant on Wall Street’s involvement.
In the coming years, as Ethereum continues to evolve, Ryan foresees a shift towards more bespoke applications that manage privacy on a granular level. This evolution represents a significant step towards addressing privacy concerns in the blockchain space, enabling broader participation from both institutional and individual users.
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Source: Decrypt
