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Ethereum News Today: Ethereum’s Privacy Pools: Addressing the Compliance Challenges in Cryptocurrency

Ethereum News Today: Ethereum’s Privacy Pools: Addressing the Compliance Challenges in Cryptocurrency

Bitget-RWA2025/11/19 06:32
By:Bitget-RWA

- Ethereum Foundation integrates Privacy Pools in Kohaku wallet, balancing privacy with compliance via zero-knowledge proofs and ASP monitoring. - EIL (ERC-4337) advances cross-chain interoperability, enabling unified L2 transactions through standardized account abstraction. - Cboe launches regulated ETH/BTC perpetual futures on Dec 15, offering institutional-grade alternatives to offshore contracts with 10-year expirations. - Proton Capital's 22.35% arbitrage returns and BitMine's $840M ETH buy signal gro

Ethereum's ecosystem is undergoing swift transformation, with recent milestones showcasing both cutting-edge technology and growing institutional engagement in the blockchain’s trajectory. A $3.5 million seed investment in regulatory-compliant privacy tech, the introduction of new financial derivatives, and enhancements to cross-chain infrastructure

as it addresses both regulatory and technical obstacles.

The

Foundation’s adoption of Privacy Pools within its Kohaku wallet represents a significant move toward reconciling user privacy with legal requirements. , utilizes zero-knowledge proofs and an Association Set Provider (ASP) to obscure transaction details while still allowing for real-time detection of suspicious activity. This advancement tackles a persistent issue in crypto: providing privacy without enabling illegal conduct. "We're addressing a challenge the industry has yet to solve: offering financial privacy without turning the space into a refuge for unlawful actions," stated 0xbow CEO Nathaniel Fried. , presenting a framework that could encourage wider institutional use of privacy solutions.

At the same time, Ethereum researchers are pushing forward with account abstraction to simplify cross-chain operations. The Ethereum Improvement Layer (EIL), based on the ERC-4337 protocol, is designed to bring together layer-2 (L2) networks, allowing users to perform cross-chain tasks through a single wallet transaction.

, compared EIL’s role to that of HTTP for the internet, imagining a future where wallets operate like browsers instead of isolated “islands.”
Ethereum News Today: Ethereum’s Privacy Pools: Addressing the Compliance Challenges in Cryptocurrency image 0
This project aims to make things easier for both developers and users, while promoting interoperability—an essential aspect as Ethereum’s L2 ecosystem grows.

Interest from major institutions in Ethereum has also increased, with Cboe Global Markets revealing plans for perpetual-style futures on

and Ethereum. The exchange intends to introduce these offerings on December 15, providing investors with a regulated and transparent alternative to offshore perpetual contracts. The contracts’ 10-year expiry removes the need for frequent rollovers, catering to institutional preferences for efficient portfolio management. , a data provider for these products, pointed out that the 23-hour daily trading period strikes a balance between operational efficiency and oversight, which is crucial for traditional investors entering the digital asset market.

Meanwhile, arbitrage strategies and treasury acquisitions are further evidence of Ethereum’s increasing attractiveness to institutional investors.

, reported a 22.35% return for its main arbitrage strategy in 2024, taking advantage of Ethereum’s fragmented markets to generate alpha. The firm’s fast infrastructure and market-neutral strategy have drawn interest from those seeking returns uncorrelated with broader markets. Separately, BitMine, a digital treasury specialist, by acquiring more than 200,000 tokens—worth $840 million—demonstrating continued belief in Ethereum’s long-term prospects.

Ethereum’s price movements reflect these trends. After falling close to $2,950, the token has recovered above $3,100, a key support zone. Technical signals indicate a possible challenge of the $3,470 resistance if bullish momentum persists, though a drop could send prices toward $2,850.

currently suggest mild bearish pressure, but the broader story of infrastructure improvements and institutional participation could strengthen ETH’s fundamentals.

As Ethereum shifts from a foundational blockchain to a multi-chain platform, the intersection of privacy innovations, cross-chain capabilities, and institutional-grade products points to a more mature market. Whether these advancements will maintain Ethereum’s leadership in the fast-changing crypto world remains uncertain, but the current pace of progress indicates the network’s momentum is far from fading.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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