Fhenix CoFHE Goes Live on Ethereum and Arbitrum for Private DeFi
TLDR
Fhenix launched its CoFHE encryption coprocessor on the Ethereum and Arbitrum mainnets on Oct. 21, 2026.
The tool lets smart contracts process encrypted data without exposing balances, positions or trading strategies.
A new dual-mode token design lets holders switch between public and private balances in one transaction.
Fluton and Alpha Engine launched as the first design partners, and Consensys Diligence audited the system.
Three more apps are set to launch in Q4 2026, and two institutional partnerships are expected soon.
Fhenix has launched its confidential computing technology on the Ethereum and Arbitrum mainnets. The tool lets smart contracts process encrypted data without exposing the information underneath.
The company announced the launch on Oct. 21, 2026. It also released CoFHE, its fully homomorphic encryption (FHE) coprocessor, into production.
The system is built to keep balances, positions and trading strategies private while decentralized apps carry out their operations.
Public blockchains make transactions and contract activity visible to anyone. That has made them harder to use for financial services that rely on private information.
Fhenix is presenting the technology as a base layer for confidential decentralized finance and tokenization. The company points to a potential $1.5 trillion tokenization market that it says is held back by privacy limits.
How CoFHE Works
CoFHE handles heavy encrypted computations offchain. It then sends the results back to smart contracts on Ethereum and Arbitrum.
Fhenix says the system’s throughput adjusts to demand. This means apps are not limited to a fixed processing rate.
Developers can add privacy features using a Solidity import and encrypted data types. These are designed to work much like normal variables, so builders can keep their usual workflows.
The launch also includes a dual-mode token design. Holders can switch balances between public and confidential modes in a single transaction, without wrapping or bridging the asset.
Because the token stays on its original blockchain, Fhenix says it remains compatible with existing wallets, exchanges and DeFi protocols.
“When I started Fhenix three years ago, I couldn’t have imagined how far it would take us,” said founder Guy Zyskind. “CoFHE is now live on Ethereum and Arbitrum mainnet, with competitive performance and a UX that’s simple for any builder who wants privacy in their dApp.”
Zyskind also said Fhenix is working with Tandem on a confidential stablecoin. The company did not share further details or a release timeline.
Design Partners and Security Review
Two design partners launched alongside the network. Fluton is building a confidentiality engine that uses encrypted intents for activity across blockchains, apps and assets.
Alpha Engine is building a confidential network for onchain finance. Strategists can submit encrypted strategies and compete for liquidity without revealing their methods.
Fhenix said both projects passed technical and security reviews before going live. Consensys Diligence also audited the system ahead of the launch.
Steven Goldfeder, co-founder and CEO of Offchain, said privacy has been a major hurdle for institutions. “Confidentiality is one of the biggest barriers between institutions and public blockchains,” he said.
He added that the Arbitrum launch gives developers a way to have both confidentiality and composability within the ecosystem.
Three more decentralized apps are scheduled to launch on CoFHE during the fourth quarter of 2026. Fhenix also expects to announce two institutional partnerships in the coming weeks.
The team is taking part in the Colosseum hackathon to test demand for confidential apps on Solana.
