Fhenix and Monaco Research Collaborate to Explore the Intersection of Confidentiality and High Performance Trading
Tel Aviv, Israel, June 4th, 2026, Chainwire
Fhenix and Monaco Research are excited to announce a research collaboration to investigate how fully homomorphic encryption (FHE) can bring meaningful confidentiality to onchain trading infrastructure. Together, these teams are exploring the design space around dark pools, encrypted request-for-quote (RFQ) systems, and the broader challenge of enabling private execution in decentralized markets, without sacrificing the trust guarantees and liquidity that make DeFi compelling.
The motivation is straightforward. Public blockchains expose every order, position, and strategy to the entire network. For future market participants, this transparency creates costs in the form of information leakage, MEV extraction, and adversarial front running that erode execution quality. Monaco Research’s exploration of high performance trading infrastructure and Fhenix’s deep work on FHE-based confidential computation create a natural intersection. The collaboration focuses on whether encrypted order flow and private state can coexist with public liquidity in the form of fair, verifiable confidential matching, a problem that demands rigorous mechanism design thinking from both sides.
As a part of this effort, potential crossovers are being evaluated with Fhenix’s FHERC-20 confidential token standard, which enables encrypted balances and transfers while preserving EVM composability. The ability to transact in tokens whose on-chain balances remain hidden opens new possibilities for confidential settlement and position privacy within trading protocols. This is early-stage research between two teams that take the hard problems seriously.
Guy Itzhaki, CEO of Fhenix, stated, “Financial markets run on information. The challenge is deciding who should have access to it, when, and under what conditions. This collaboration with Monaco Research explores a fundamental question: Can we bring meaningful confidentiality to onchain trading without compromising fairness, verifiability, or liquidity? It’s a difficult problem, which is exactly why it’s worth working on.”
About Monaco Research
Monaco Research is the software development team behind the Monaco protocol, responsible for designing and building the core infrastructure that powers Monaco’s high-performance global trading network. The team focuses on advancing decentralized trading technology, including offchain order matching, onchain settlement, and the broader technical architecture that enables institutional-grade trading capabilities for decentralized applications.
About Fhenix
Fhenix is a protocol building confidential computing infrastructure using fully homomorphic encryption (FHE) for EVM compatible chains. Its core products, including the CoFHE coprocessor and the FHERC-20 token standard, enable smart contracts to compute directly on encrypted data: keeping balances, transfers, and contract state private without ever decrypting onchain. Fhenix makes encrypted computation accessible to Solidity developers with minimal changes to existing workflows. Learn more at www.fhenix.io.