Private by Default: Canopy and Fhenix Bring Confidential Apps Onchain

Blockchains were built to make everything visible. Every balance, every bid, every transaction sits in the open by design. That transparency is useful for some things and a dealbreaker for most real ones. It is the reason a payroll system, a sealed-bid auction, or a company's settlement flow has stayed off-chain: no one wants their sensitive data published to the world.

Today we are changing that. Canopy is partnering with Fhenix to launch Canopy Confidential Apps, a new way to build sovereign onchain apps where user data stays encrypted even while it is being used, with no cryptography expertise required.

What we are launching

Canopy Confidential Apps are built on Fhenix's CoFHE, an off-chain fully homomorphic encryption (FHE) coprocessor, integrated into the Canopy Stack. Apps launched from the Canopy Confidential Apps template get encrypted computation out of the box. Confidentiality becomes a property of the app itself, reachable through a familiar TypeScript library instead of a custom cryptography stack.

It is the same idea behind Canopy's security model, applied to privacy. Just as every Canopy app is secure from block zero without the builder wiring it up, Confidential Apps make privacy something the platform provides, not something each team has to engineer on its own. Canopy already lets anyone launch a real onchain app in a single session. Now that app can keep its users' data private from the start.

Why now

The timing follows a real shift in what institutions are asking for. Firms that want to settle onchain have largely concluded that public-by-default networks are unusable for their business, and the market has answered with a wave of permissioned and privacy-enabled chains. Canopy Confidential Apps take a different path to the same goal: rather than closing the network to get privacy, they keep the data encrypted and leave the network open.

How it works

Confidentiality runs through Canopy's plugin and runtime layer, not its base consensus, so builders add private operations without changing how Canopy works underneath. In practice, an app encrypts a user's input in the Canopy wallet and sends it as a standard transaction. Fhenix's CoFHE performs the heavy encrypted computation off-chain. When a result needs to be revealed, a trust-minimized process returns a signed value that Canopy verifies before any state settles. Builders reach all of it through familiar tools, with no privacy stack or key management of their own.

What it unlocks

Picture a game where every player's hand, units, and map knowledge stay encrypted. Players submit their moves privately and see only the result of each encounter, who won, how much damage was dealt, which territory changed hands. That is routine off-chain and effectively impossible on a public blockchain today.

The same property applies to business processes that stall on exactly this problem. A buyer opens an RFP, six suppliers submit encrypted bids, and at the deadline the app publishes only the winner and the winning price. The losing bids are never decrypted by the participating parties. From confidential DeFi to institutional settlement to onchain gaming with hidden state, the pattern is the same: act on private data without ever exposing it.

From the teams

"Every team we talk to hits the same wall," said Adam Liposky, CEO of Canopy. "They have a real use case, and it requires not publishing their users' data to the world. Until now the answer was to hire a cryptographer. Now it's a plugin."

"Open networks should not require open data," said Guy Itzhaki, CEO of Fhenix. "By bringing CoFHE into the Canopy Stack, developers can build sovereign apps that compute on sensitive information while it stays encrypted. Confidentiality becomes part of the application architecture, not a separate system teams have to build around it."

What is next

The Fhenix integration is underway now and will roll out in Q4 2026. Today's news is the partnership itself, with the ready-to-use integration coming soon. Our technical teams will work through the details together after launch, and we will share more as it comes together, including a joint deep dive down the road.

If you are building onchain and privacy has been the thing standing in your way, this is for you. Canopy is live on public testnet today, with more than 100,000 daily active wallets.

• Website: canopynetwork.org
• Public testnet: testnet.app.canopynetwork.org
• Ecosystem rewards: rewards.canopynetwork.org
• Docs: canopy-network.gitbook.io/docs

Token Disclaimer

CNPY rewards are not offered or intended as an investment, and nothing in this announcement should be construed as investment advice or as a recommendation to purchase any security or token. Recipients should not rely on this announcement in connection with any investment decision.

Forward-Looking Statements

This post contains forward-looking statements, including statements regarding Canopy's expected product development timelines, planned mainnet launch, anticipated global expansion, multi-year runway, and other future events or conditions. Forward-looking statements are based on management's current expectations and assumptions and are subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied. Canopy undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.