Fhenix and Canopy have formed a technical partnership to embed confidential computation directly into the Canopy Stack, giving developers a direct path to building sovereign onchain applications that keep user data encrypted during processing. The collaboration removes the need for teams to assemble a separate cryptography stack or employ specialist cryptographers before they can deploy private application logic.
The integration introduces a new Canopy Confidential App template powered by Fhenix’s CoFHE coprocessor for fully homomorphic encryption. Developers will be able to add encrypted computation through a familiar TypeScript library, making confidentiality part of the application from the outset rather than a feature grafted on later. The approach extends Canopy’s existing platform model, in which the stack manages underlying infrastructure so builders can concentrate on the application itself.
Public-by-default infrastructure serves many onchain use cases effectively, yet it fails when applications must handle commercially sensitive, personal, or strategic information. Some teams have responded by retreating to closed networks. Fhenix and Canopy are pursuing an alternative strategy: preserving the openness of the network while ensuring that data remains encrypted throughout its lifecycle.
The technical architecture operates through Canopy’s plugin and runtime layer without altering base consensus. A user’s input is encrypted within the Canopy wallet and submitted as a standard transaction. Fhenix’s CoFHE system processes the encrypted data offchain, and when a result must be disclosed, a trust-minimized mechanism returns a signed value that Canopy verifies before state is settled. Builders access this entire flow through familiar tooling, without managing a separate privacy stack or encryption keys.
Canopy’s core components are already operational, including plugin lifecycle hooks, the state bridge, plugin scaffolding, and the wallet runtime. Fhenix has deployed CoFHE across Ethereum, Arbitrum, and Base. Development of the remaining encrypted-transaction components is ongoing.
The architecture enables concrete applications across multiple sectors. In an onchain game, a player’s hand, units, and map knowledge can remain concealed. Participants submit moves privately and learn only the outcome of each encounter, such as who prevailed, how much damage was inflicted, or which territory changed control.
The same model applies to business workflows. A buyer can issue a request for proposals, receive encrypted bids from multiple suppliers, and publish only the winner and winning price when the deadline arrives. The unsuccessful bids need not be exposed to other participants.
“Every team we talk to hits the same wall. They have a real use case, and it requires not publishing their users’ data to the world,” said Adam Liposky, CEO of Canopy in a written statement. “Until now the answer was to hire a cryptographer. Now it’s a plugin,” he added.
“Open networks should not require open data. By bringing CoFHE into the Canopy Stack, developers can build sovereign apps that compute on sensitive information while it stays encrypted,” said Guy Itzhaki, CEO of Fhenix in a written statement. “Confidentiality becomes part of the application architecture, not a separate system teams have to build around it,” he added.
The Fhenix integration is currently in development and is scheduled for release in the fourth quarter of 2026. Canopy is live on public testnet, where it has recorded 16.8 thousand forks and maintains more than one hundred thousand daily active wallets.
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