Fhenix Acquires Sunscreen to Accelerate Quantum-Safe Privacy for Ethereum

As stablecoins, tokenized assets, AI applications and institutional finance continue moving onchain, developers increasingly need infrastructure capable of processing sensitive information without exposing it publicly.

That's the opportunity Fhenix is betting on with its acquisition of Sunscreen, one of the earliest companies building with fully homomorphic encryption (FHE).

The deal also brings Sunscreen founder Ravital Solomon to Fhenix, where she will lead the company's research efforts as it expands privacy infrastructure across Ethereum, Arbitrum and Base.

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Privacy Is Becoming Core Infrastructure

For years, blockchain privacy was largely associated with privacy coins and niche applications. That conversation has changed.

As tokenized real-world assets, stablecoins, AI systems and institutional capital increasingly move onchain, encrypted computation is becoming a foundational technology for the next generation of decentralized applications.

"FHE is entering a new phase," said Guy Zyskind, Founder of Fhenix. "The conversation is no longer about whether encrypted computation works. It's about making it scalable, practical, and available across the ecosystems where developers are building today."

Fully homomorphic encryption is one of the most promising approaches. It allows data to remain encrypted while computations are performed on it, opening the door to confidential smart contracts, private trading strategies, secure AI applications and enterprise-grade financial infrastructure without sacrificing blockchain composability.

Bringing Together Two FHE Pioneers

Sunscreen has been one of the earliest companies focused on making fully homomorphic encryption practical for developers.

Since launching publicly in 2022, the company has developed an open-source FHE compiler, privacy-preserving developer tools, threshold-encrypted systems and research spanning zero-knowledge cryptography, encrypted computation and post-quantum security.

Its founder, Ravital Solomon, has become one of the leading voices helping bridge advanced cryptographic research with real-world blockchain deployment.

Together, the combined team significantly expands Fhenix's expertise across BFV, TFHE, compiler design, threshold cryptography and confidential application architecture.

"Sunscreen has been one of the most respected teams pushing this field forward from the very beginning. Bringing Ravital and Sunscreen's assets into Fhenix allows us to move faster toward our goal of building the quantum-safe privacy layer for Ethereum, Arbitrum, Base, and beyond," Zyskind added.

"I started Sunscreen because I believed advanced cryptography should shift from theoretical to usable," said Ravital Solomon. "What excited me about joining Fhenix is the combination of ambitious research and a clear path to deployment."

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Preparing Blockchain for the Quantum Era

The acquisition reflects a broader shift taking place across the blockchain industry.

Quantum computing is no longer viewed solely as a distant theoretical risk. At the same time, demand for confidential computation continues growing as institutions seek privacy-preserving infrastructure capable of supporting regulated finance, digital identity, payments and AI-powered applications.

Fhenix has already been developing CoFHE, its encrypted computation infrastructure for Ethereum-compatible applications, while advancing research into threshold FHE decryption, scalable encrypted computation and exact arithmetic for real-world blockchain workloads.

"Fhenix has already built meaningful infrastructure across live blockchain ecosystems, and I'm excited to help lead the next chapter of research as encrypted computation moves closer to mainstream adoption," Solomon said.

With Sunscreen joining the team, the company's research organization will now focus on advancing scalable FHE systems, quantum-resistant infrastructure and the cryptographic foundations needed for confidential applications across finance, payments, identity and artificial intelligence.

Rather than betting on a single breakthrough, Fhenix is betting that the future of blockchain privacy will belong to the teams capable of transforming frontier cryptography into infrastructure developers can actually deploy.

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As blockchain enters its next phase of institutional adoption, privacy may become just as important as scalability—and Fhenix wants to be one of the companies building that foundation.