Solana infrastructure firm Helius has taken a new step to strengthen the network’s privacy-focused foundation by acquiring Light Protocol. The move is expected to pave the way for enterprise-grade zero-knowledge based solutions for private payments and confidential decentralized finance (DeFi) applications.
Scope of the acquisition
Known for its developer tools in the Solana ecosystem, Helius completed the transaction under the leadership of its founder and CEO Mert Mumtaz. The acquisition merges Light Protocol’s cryptography expertise with Helius’s distribution capabilities and technical foundation. Together, the two teams aim to develop private transfers and confidential DeFi products on the Solana network.
According to Helius, the new system is being designed as a programmable and flexible privacy infrastructure, adaptable to a variety of use cases.
Founded in 2021 with a focus on zero-knowledge privacy for Solana, Light Protocol later shifted its attention to ZK Compression technology and began working with Helius. Introduced in 2024, this framework was developed to reduce on-chain storage costs.
Mini glossary: A zero-knowledge proof is a cryptographic method that mathematically proves the validity of information without revealing the information itself. ZK Compression applies this approach to minimize on-chain data load and enables applications to scale at lower costs.
Light Protocol returns to its initial vision
With the acquisition, Light Protocol is returning to its original mission. The team is now developing a zero-knowledge privacy protocol specifically designed for Solana applications. The project does not yet have a finalized name.
Helius plans to make this infrastructure accessible to developers in the coming months. The first phase will focus on pilot programs for private transfers, confidential DeFi apps, and customizable privacy settings. The company’s approach aims to appeal to both individual users and enterprise clients by building a flexible and broad-based platform.
Industry sees renewed focus on privacy
This transaction is seen as part of a broader trend of mergers and acquisitions in the crypto sector, which has accelerated recently. In a climate where many projects are downsizing or closing due to shrinking venture capital, infrastructure firms with strong balance sheets are pursuing strategic acquisitions to enhance technical capabilities.
Simultaneously, privacy solutions are regaining prominence in blockchain. The Ethereum Foundation is reportedly channeling resources into privacy-focused projects, while both developer and user interest in Zcash has been revitalized. Mert Mumtaz is also among those consistently emphasizing the need for stronger privacy tools in both Solana and the wider crypto landscape.
Mumtaz argues that privacy is fundamental for mainstream blockchain adoption, suggesting it could serve a role similar to HTTPS encryption in online commerce.
Through this acquisition, Helius intends to bring the crypto sector’s rich history of cryptography directly to user-facing products. The company aims to transform the technical foundation built by Light Protocol into a core component of Solana’s privacy layer.
