- Sedona will implement Fhenix’s CoFHE infrastructure when that migration is finished, changing the platform’s privacy paradigm from hardware-based trust assumptions to cryptographic assurances.
- Sedona users will have private portfolio positions, encrypted balances, and AI agent spending limitations under the integrated model, all of which are concealed even from the agents operating inside them.
Sedona, a neo-bank and self-custodial trading platform, has announced a collaboration with Fhenix to include Confidential FHE (CoFHE) infrastructure into its Arbitrum-based platform. User balances, portfolio positions, and AI agent spending limitations will all be encrypted by default thanks to the integration, which will replace Sedona’s current Trusted Execution Environment (TEE)-based security approach with Fully Homomorphic Encryption. The technological integration is still under progress; the cooperation was announced today.
“Sedona is exactly the kind of application Confidential FHE was built for. Trading platforms and financial applications need privacy that extends beyond transactions to balances, positions and increasingly the parameters that autonomous agents operate within. By moving from trusted hardware to cryptographic guarantees, Sedona is showing how confidential finance can become a native capability on Arbitrum rather than an optional feature. We believe this partnership is an important step toward making privacy a default expectation for onchain financial applications,” said Guy Itzhaki, CEO of Fhenix.
Tyler Maxwell founded Sedona, a self-custodial neo-bank that prioritizes trading and offers spot trading, perpetuals, and structured products. The platform is now moving to Arbitrum from the Seismic ecosystem. Sedona will implement Fhenix’s CoFHE infrastructure when that migration is finished, changing the platform’s privacy paradigm from hardware-based trust assumptions to cryptographic assurances.
For both users and developers, the difference is important. Current private DeFi solutions usually depend on either committee-based models, which demand confidence in a group of operators, or trusted execution environments, which require users to trust the underlying hardware. These trust requirements are eliminated by fully homomorphic encryption, which enables calculations to be carried out directly on encrypted data. Sedona users will have private portfolio positions, encrypted balances, and AI agent spending limitations under the integrated model, all of which are concealed even from the agents operating inside them.
“We started with TEEs because they were the most practical way to deliver privacy, but our goal has always been to remove trust assumptions wherever possible. Fully homomorphic encryption lets us protect sensitive financial data through mathematics rather than hardware, providing a much stronger foundation for the future of self-custody. For many of our users – especially those in emerging markets who rely on stablecoins as their primary savings account and payment rail: financial privacy isn’t a luxury. It’s an expectation. Bringing FHE to Sedona means they can manage their assets, automate strategies, and use AI-powered tools without exposing the information that matters most,” said Tyler Maxwell, Founder of Sedona.
Fhenix is developing a fully homomorphic encryption (FHE)-powered full-stack privacy infrastructure. It makes it possible for developers to create financial apps that safeguard user information, tactics, and transactions without compromising composability by enabling encrypted smart contracts on-chain. With an initial emphasis on DeFi, Fhenix integrates with Ethereum, Arbitrum, and Base to make confidentiality a natural primitive for collateral, stablecoins, and trade. The goal of Fhenix is to make FHE available everywhere so that users, developers, and institutions may do business in an open yet secure financial system.
Sedona is a self-custodial neo-bank that prioritizes trading in order to provide customers more autonomy over their digital asset management, saving, and trading. Tyler Maxwell founded the platform, which blends onchain finance’s privacy-preserving architecture with spot trading, perpetuals, and structured products. Sedona is now moving from the Seismic ecosystem to Arbitrum, where it will use Fhenix’s Confidential FHE (CoFHE) infrastructure to use completely homomorphic encryption in favor of TEE-based security. This architecture enables private, self-custodial financial services without depending on trusted hardware by guaranteeing that customer balances, portfolio positions, and AI agent spending constraints stay encrypted by default.
