Fhenix launches CoFHE coprocessor on Ethereum and Arbitrum for encrypted smart contract computing
Privacy startup Fhenix has brought its CoFHE coprocessor to Ethereum and Arbitrum mainnets, enabling smart contracts to compute on encrypted balances and strategies using fully homomorphic encryption.
Privacy startup Fhenix has launched its CoFHE coprocessor in production on Ethereum and Arbitrum mainnets, according to Unchained and BSCN. Powered by fully homomorphic encryption (FHE), the technology lets smart contracts process balances, positions, and trading strategies that stay encrypted on-chain. CoFHE performs the heavy cryptographic calculations off-chain and feeds the verified results back to contracts on both supported networks.[2][4][1][3]
The deployment also introduces Fhenix's Dual Mode Token standard to production. The format lets users shift assets between public and confidential modes in a single transaction without bridging or wrapping tokens, keeping liquidity inside a single pool. Developers can integrate CoFHE using one Solidity import and encrypted data types that act like standard variables. Fhenix said security firm Consensys Diligence audited the system before deployment, though Unchained reported it could not find a publicly available copy of the audit.[2][4]
Two design partners went live alongside the mainnet launch: Fluton, a confidentiality engine built around encrypted transaction intents, and AlphaEngine, a platform where strategists compete using hidden trading methodologies. Fhenix said three more applications will deploy on CoFHE during the fourth quarter. In addition, founder Guy Zyskind revealed that the team is working on a confidential stablecoin alongside Tandem, the venture arm of Arbitrum creator Offchain Labs.[2]
Key facts
- Fhenix deployed its CoFHE coprocessor to Ethereum and Arbitrum mainnets after previously running only on public testnets.
- CoFHE uses fully homomorphic encryption to calculate heavy operations off-chain and return results to on-chain smart contracts without exposing hidden data.
- The Dual Mode Token standard allows users to switch between public and confidential modes in one transaction without wrapping or bridging tokens.
- Fhenix stated that Consensys Diligence audited the system, though Unchained could not locate a public copy of the audit report.
- Fluton and AlphaEngine launched as day-one partners, with three additional applications scheduled for release in the fourth quarter.
- Fhenix is developing a confidential stablecoin in collaboration with Tandem, the venture arm of Arbitrum creator Offchain Labs.
Sources · 4 sources
- CB
Crypto BriefingArticle ·
Fhenix launches CoFHE coprocessor on Ethereum and Arbitrum Fhenix's CoFHE coprocessor enhances privacy and efficiency in blockchain transactions, potentially transforming smart contract operations. The post Fhenix launches CoFHE coprocessor on Ethereum and Arbitrum appeared first on Crypto Briefing .
Open source - UN
UnchainedArticle ·
Fhenix Goes Live on Ethereum and Arbitrum, Letting Contracts Compute on Hidden Balances On Ethereum, a wallet’s holdings are public by default: anyone with the address can see what it owns, what it trades and when. Fhenix , a startup building privacy tools for Ethereum, said Wednesday that smart contracts on Ethereum and Arbitrum mainnet can now work with balances, positions and trading strategies that remain encrypted onchain, while the contract still enforces its rules. The company said its CoFHE coprocessor, built on fully homomorphic encryption (FHE) , is now in production on both networks. Until the launch, CoFHE ran only on public test networks. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . How It Works FHE is a form of cryptography that lets a computer do math on data without decrypting it first. According to Fhenix, CoFHE handles the heavy encrypted computation off-chain and passes the results back to contracts on the two chains. Developers add it with one Solidity import and encrypted data types that, the company said, behave like normal variables. The launch also brings Fhenix’s dual-mode token design into production. Tokens issued under Fhenix’s dual-mode standard carry a confidential mode next to their public one, according to the company, and a holder can shift a balance into confidential mode in one transaction and switch it back when needed. Fhenix said those tokens never leave their home chain, are not wrapped or bridged, and keep working with existing wallets, exchanges and DeFi apps. Fhenix said Consensys Diligence audited the system before launch. Unchained could not find a public copy of the audit report. First Apps and What Comes Next Two design partners went live on day one, according to Fhenix: Fluton , which the company describes as a confidentiality engine built on encrypted intents, and AlphaEngine , where strategists compete for users’ liquidity with strategies that stay encrypted, so their methods remain private. A December 2025 post on Fhenix’s blog said AlphaEngine’s operators decrypt and match users’ swap intents in a step designed to run inside a trusted execution environment, a secure hardware enclave. Fhenix said three more apps will launch on CoFHE in the fourth quarter, and that it plans to name two strategic partnerships with institutions in the coming weeks. Founder Guy Zyskind said in the announcement that the team is “working on a confidential stablecoin together with Tandem,” Offchain Labs’ venture arm that invested in Fhenix in 2025. Offchain Labs develops Arbitrum. Fhenix is not the only team bringing FHE to stablecoins. In late May, a court order led Circle to freeze about $12.6 million held in a confidential USDC contract run by Zama, another FHE developer, locking funds of users unconnected to the case. Steven Goldfeder , co-founder and CEO of Offchain Labs , said in Fhenix’s announcement that the launch is “the beginning of something big: a programmable economy with programmable privacy, fully composable for the end user.” Related Listen: ‘Like a Peanut Butter Allergy’: Why Institutions Need Onchain Privacy The post Fhenix Goes Live on Ethereum and Arbitrum, Letting Contracts Compute on Hidden Balances appeared first on Unchained .
Open source - LS
Laura Shin@laurashinPost on X ·
Fhenix said its CoFHE coprocessor is now in production on Ethereum and Arbitrum mainnet, so smart contracts can run on encrypted balances and positions without exposing them. https://t.co/JzKkjNG8wr https://t.co/DW4xzOxeEf
Open source - BS
BSCN@BSCNewsPost on X ·
Arbitrum welcomes Fhenix Encryption mainnet @Fhenix brings its CoFHE solution live to @Ethereum & Layer 2 rollup network @Arbitrum, providing native Fully Homomorphic Encryption (FHE) on EVM execution chains. The protocol brings to market a Dual Mode Token standard that lets users and smart contracts switch between publicly visible and encrypted execution in a single liquid pool, without the fragmentation associated with traditional privacy pools.
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