Ethereum Foundation Launches Privacy Cluster for Web3 Security

The Ethereum Foundation (EF) has reaffirmed its long-term commitment to user privacy with the launch of an expanded Privacy Cluster. It consists of a multidisciplinary group of 47 researchers, cryptographers, and engineers working on applied cryptography, private transactions, and selective disclosure tools.

The new cluster builds on years of open-source R&D under the foundation’s Privacy & Scaling Explorations (PSE) team, formalizes several projects already in motion, including Private Reads & Writes, Private Proving, and Private Identities. Each of these elements are designed to bring secure, privacy-preserving functionality to Ethereum users and institutions.

The group also oversees the Institutional Privacy Task Force (IPTF), which translates compliance and operational standards into technical specifications for real-world business use.

According to the EF, privacy is not an optional feature but a “requirement for trust at civilizational scale.” The foundation described its mission as ensuring users can transact, communicate, and build without surveillance, aligning with Ethereum’s role as the base layer for open digital economies.

Expanding privacy from protocol to institutions

The foundation’s approach spans every layer of the stack, from cryptographic research to enterprise applications. Projects like Semaphore (anonymous signaling), MACI (private voting), and zkEmail have already been adopted across the broader ecosystem.

While the project is currently revealed mostly in theory, its next phase focuses on integrating privacy into institutional use cases, such as real-world assets (RWA), fund management, and compliance-driven payments.

This vision is mirrored in the EF’s Kohaku Wallet, an open-source SDK aimed at making strong cryptography accessible to average users, and in new zero-knowledge initiatives that let organizations verify data without revealing it. Collectively, these developments aim to redefine how privacy operates within decentralized systems — not as an exception, but as the default.

A parallel evolution: XRPL’s institutional privacy push

Ethereum’s renewed privacy focus comes as other blockchain ecosystems pursue similar goals. The XRP Ledger (XRPL), backed by Ripple, is developing its own privacy architecture built around zero-knowledge proofs and encrypted balances, targeting institutional adoption under clear regulatory frameworks.

Ripple’s engineers have emphasized privacy as a prerequisite for large-scale financial onboarding, a sentiment strikingly similar to Ethereum’s institutional stance. Both Ethereum and XRPL are converging on a new paradigm: privacy as compliance. Ethereum’s task force turns regulations into code, while Ripple builds encrypted layers that preserve oversight for regulators.

This shift marks a new phase for blockchain: privacy and transparency no longer collide but coexist. From Ethereum’s labs to XRPL’s enterprise stack, networks are racing to prove compliance and freedom can share the same codebase.