Fhenix Combines With Sunscreen to Build Quantum-Resistant FHE for Finance, AI and Payments
Blockchain privacy firm Fhenix announced on July 2 the acquisition of Sunscreen, an early-stage developer specializing in fully homomorphic encryption (FHE) for Web3 applications. As part of the deal, Sunscreen founder Ravital Solomon will join Fhenix to lead the company’s cryptographic research operations.
The acquisition combines Fhenix’s and Sunscreen’s respective expertise in advanced cryptography, including TFHE and BFV encryption schemes, encrypted computation, and post-quantum security. This consolidation comes as the cryptocurrency industry increasingly views encrypted computation as essential infrastructure for mainstream adoption, especially with the growing migration of institutional capital, tokenized real-world assets, stablecoins, and artificial intelligence systems to blockchain networks.
Since its launch in 2022 with an open-source FHE compiler, Sunscreen expanded into zero-knowledge tooling, threshold-encrypted systems, and privacy architectures. Solomon specializes in adapting lattice-based, post-quantum cryptography for smart contracts and production environments.
“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.” Zyskind added that the acquisition aims to accelerate the deployment of a quantum-safe privacy layer across major blockchain networks, including Ethereum, Arbitrum, and Base.
Fhenix has been expanding its privacy stack through CoFHE, its encrypted computation infrastructure tailored for Ethereum Virtual Machine (EVM) applications. Recent research initiatives have focused on threshold FHE decryption, exact arithmetic, and scaling encrypted computing to handle real-world blockchain workloads.
“I started Sunscreen because I believed advanced cryptography should shift from theoretical to usable,” said Solomon. “What excited me about joining Fhenix is the combination of ambitious research and a clear path to deployment.”
The unified research division will focus on developing scalable, quantum-resistant FHE systems. Fhenix officials stated that the long-term goal is to build the cryptographic foundations necessary to support confidential onchain data processing across financial services, digital payments, identity verification, and AI applications.