Finst

Helius Expands Solana Privacy With Light Protocol Acquisition

Helius is strengthening its Solana team with Light Protocol and betting on a new ZK privacy protocol. The company wants to make private payments and DeFi possible.

By Luc Vesters
• 2 min read
Helius Expands Solana Privacy With Light Protocol Acquisition

Key Takeaways

  • Helius has acquired Light Protocol to strengthen its team and focus on privacy solutions within the Solana ecosystem.
  • Light Protocol originally brought zero-knowledge privacy to Solana and later shifted to ZK Compression, a technology that lowers data storage costs.
  • Helius wants to build a ZK-based privacy protocol for private payments and private DeFi, and expects it to be available to developers in the coming months.

Helius, an infrastructure company for Solana founded by Mert Mumtaz, has acquired Light Protocol to strengthen its team and focus on privacy solutions within the Solana ecosystem. The move comes at a time when the crypto sector is consolidating and interest in onchain privacy is growing.

Focus on Privacy and Scalability

Light Protocol was founded in 2021 with the goal of bringing zero-knowledge privacy to Solana. The company later shifted its focus to ZK Compression, a technology co-developed by Helius and launched in 2024. ZK Compression lowers the cost of storing data on Solana by using zero-knowledge proofs, making it possible to build large-scale consumer and enterprise applications.

With the acquisition, Helius can combine Light Protocol's cryptographic expertise with its distribution and infrastructure. The company wants to develop a ZK-based privacy protocol that supports private payments and private DeFi on Solana. This new infrastructure will be fully programmable and configurable, making it suitable for both retail and institutional use cases. Helius expects to make the privacy solutions available to developers in the coming months.

Consolidation and Growth in the Crypto Sector

The acquisition comes during a period when the crypto market is going through a phase of consolidation. As venture capital dries up, several projects are choosing to shut down, while better-funded companies are expanding through acquisitions. Interest in privacy is also growing across the crypto industry, not just on Solana, but on other chains like Ethereum and Zcash as well.

Mert Mumtaz stressed the importance of blockchain technology: "Crypto without privacy is not crypto. Just like HTTPS made the internet secure, privacy will do the same for blockchains." He points to Solana as one of the fastest blockchains, but says it cannot fully scale without privacy. That view highlights the strategic importance of the acquisition for Helius and the broader adoption of privacy solutions across the crypto market.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.