The inaugural live application of Ethereum’s evolving privacy framework introduces institutional-grade confidentiality to the blockchain.

London, United Kingdom, May 01, 2025 — Rayls, the blockchain tailored for banks and recognized by JP Morgan Kinexys and the Central Bank of Brazil, has announced the launch of Enygma. Enygma is a privacy-preserving framework that is quantum-resistant and institutionally compliant for Ethereum and EVM-compatible blockchains. This launch signifies a substantial advancement for institutional DeFi, addressing concerns surrounding on-chain privacy for financial institutions and marking the first operational implementation of Ethereum’s anticipated privacy roadmap.
The launch is particularly timely, as Ethereum’s core developers and community are increasingly focused on enhancing the network’s inherent privacy features. Enygma’s capabilities closely mirror the objectives detailed in Ethereum co-founder Vitalik Buterin’s recent “Maximally Simple Privacy” roadmap, with Rayls converting these concepts into a live, functional, and scalable solution.

A New Chapter for Onchain Privacy
Rayls’ Enygma directly tackles a long-standing problem in decentralized finance: the need for confidential transactions and anonymous asset exchange without compromising performance, composability, or compliance, all while ensuring long-term quantum privacy. The privacy protocol is currently active on the Rayls network, employing a combination of public chains and private institutional subnets to ensure privacy, security, and compliance.
Leveraging its involvement in the Brazil Central Bank’s Drex CBDC initiative, Rayls is presenting Enygma as the next stage in privacy-preserving tools for institutions. The solution is fully compatible with existing EVM infrastructure, removing the requirement for specialized privacy chains or wallets.
“Rayls is designed to enable private transactions. Privacy is essential, especially for banks and financial institutions operating in a regulated environment,” stated Marcos Viriato, CEO of Parfin. “Enygma provides the industry with a concrete example of how privacy, programmability, and compliance can effectively coexist at scale.”

Privacy by Default
Enygma fundamentally combines advanced zero-knowledge proofs with homomorphic encryption, facilitating private transactions and shielded balances across various Ethereum token standards, including ERC-20, ERC-721, and ERC-1155.
In contrast to previous strategies that relied on separate privacy protocols or off-chain mixers, Enygma is integrated directly into the transaction layer. This allows both institutions and individual users to perform private payments and atomic asset swaps natively on Ethereum-compatible networks.
The system also features an optional compliance model centered around auditors. Institutions, dApps, or the operators of the privacy-preserving solution can appoint an independent auditor to monitor encrypted transaction data via Enygma’s “God View” feature, granting selective regulatory access without affecting the overall privacy of the network.
Setting the Benchmark for Ethereum’s Privacy Roadmap
Enygma’s architecture directly supports the four main elements of Ethereum’s current privacy discussions:

• Private payments as the standard setting for users

• Anonymization of activity across different applications

• Encrypted read access for queries involving on-chain data

• Anonymity at the network level, eliminating the need for dedicated privacy wallets.

By providing these functionalities in a live production setting, Enygma demonstrates the progress of Ethereum’s privacy ecosystem and highlights the potential for privacy-focused applications with regulatory oversight within decentralized finance.
Looking ahead, the Rayls Foundation plans to open-source both Enygma and the Rayls Privacy Node, the high-performance, EVM-compatible institutional infrastructure, later this year. This initiative will allow developers, institutions, and contributors to the Ethereum ecosystem to implement Enygma’s privacy features in their respective applications and networks.
Rayls is also working with the broader Ethereum community to integrate wallet functionalities, create bridge tools for private assets, and support smart contract privacy patterns, moving closer to its goal of programmable, auditable, and future-proofed privacy.

ENDS

About Rayls
Rayls is a blockchain designed for banks and financial institutions, aiming to bring $100 trillion in liquidity and connect 6 billion banking customers on-chain. It functions as an EVM-compatible, public-permissioned blockchain infrastructure, initially created to meet the privacy, scalability, and compliance demands of financial institutions worldwide. Rayls provides native compliance and governance controls, quantum-safe privacy preservation, and institutional-level scalability, enabling secure connections between traditional TradFi systems and decentralized finance through its unique Rayls Privacy Node infrastructure, ensuring secure and private transactions for businesses.
Rayls connects traditional liquidity and customer networks to the public blockchain, promoting the adoption of Real World Asset (RWA) tokenization, as well as the development of Stablecoins and Central Bank Digital Currencies (CBDCs).
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Media Contact
Natasha Torres- Coote
natasha@lunapr.io