Helius, the Solana infrastructure firm founded by Mert Mumtaz, has acquired Light Protocol to enable its experienced team to focus on Solana privacy solutions. The acquisition returns Light Protocol to its original mission of building zero-knowledge privacy infrastructure, pairing its cryptography expertise with Helius's distribution and infrastructure capabilities. This move comes amid a period of consolidation in the crypto industry as venture capital financing declines, while interest in onchain privacy rises across the ecosystem, including at the Ethereum Foundation and for Layer 1 chains like Zcash.
Helius Acquires Light Protocol for Solana Privacy Focus
According to an announcement shared with The Block, Light Protocol was founded in 2021 to bring zero-knowledge privacy to Solana before it shifted to ZK Compression, which was co-developed by Helius and launched in 2024. ZK Compression is an infrastructure framework aimed at reducing the cost of storing data on Solana using zero-knowledge proofs, enabling developers to build large-scale consumer and enterprise apps.
The acquisition returns Light to its original mission, pairing its cryptography with Helius's distribution and infrastructure. This includes building a ZK-based privacy protocol for private payments and private DeFi on Solana.
Light Protocol Shifts from ZK Compression to Privacy Infrastructure
The new privacy infrastructure, unnamed in the statement on Wednesday, is fully programmable and configurable to enable customization for both retail and institutional use cases. Helius plans to open the new privacy infrastructure to developers in the coming months, according to the announcement.
Crypto Industry Consolidation Drives Acquisition Activity
The acquisition comes amid a moment of consolidation in the crypto industry as venture capital financing dries up. Several projects, including well-established protocols, have opted to wind down, while some more capitalized firms look to expand through acquisitions.
Mert Mumtaz Advocates for Onchain Privacy as Core Priority
"Crypto without privacy is not crypto," Mumtaz said. "Just as HTTPS made the HTTP internet safe and scalable for global commerce, privacy will do the same for blockchains. Solana has a huge ecosystem, is the fastest chain in existence, but will never scale unless privacy is taken as a PO priority."
"It is comical that 'cryptographic' currencies barely make use of cryptography today; we are going to change that," he added. Mumtaz has become an outspoken advocate for onchain privacy and has championed Solana-based tools alongside his support for Zcash.
FAQ
What did Helius acquire and why?
Helius acquired Light Protocol to enable its experienced team to focus on Solana privacy solutions. The acquisition returns Light Protocol to its original mission of building zero-knowledge privacy infrastructure, pairing its cryptography with Helius's distribution and infrastructure.
What is ZK Compression and how does it relate to Light Protocol?
ZK Compression is an infrastructure framework aimed at reducing the cost of storing data on Solana using zero-knowledge proofs, enabling developers to build large-scale consumer and enterprise apps. It was co-developed by Helius and launched in 2024. Light Protocol shifted its focus to ZK Compression before the acquisition returned it to privacy infrastructure development.
When will the new privacy infrastructure be available to developers?
Helius plans to open the new privacy infrastructure to developers in the coming months, according to the announcement.
