Helios acquires Light protocol to enhance Solana privacy

TLDR

• Helius buys Light Protocol to create stronger privacy tools than Solana
• Light Protocol returns to its original zero-knowledge privacy mission
• Helius targets private payments and private DeFi on Solana
• ZK Compression’s work provides Helius with a base for its privacy infrastructure
• Solana’s privacy efforts grow as cryptocurrency consolidation reshapes the sector

Helius has acquired Light Protocol to expand Solana’s privacy infrastructure and push zero-knowledge tools into payments and DeFi. The deal returns Light Protocol to its early privacy mission after its later work on ZK Compression. It also gives Helios a stronger crypto team as privacy becomes a bigger priority across cryptocurrencies.

Helios moves to enhance Solana privacy

Helius, the Solana infrastructure company founded by Mert Mumtaz, has acquired Light Protocol to develop privacy tools for Solana. The company plans to integrate Light Protocol’s cryptographic work with its own infrastructure and developer reach. As a result, the acquisition targets private payments and private DeFi applications Solana.

Light Protocol started in 2021 with a focus on Solana’s zero-knowledge privacy. The project later shifted toward ZK Compression, which Helius and Light Protocol helped develop. The framework was launched in 2024 and focused on reducing Solana data storage costs.

ZK Compression uses zero-knowledge proofs to reduce the cost of storing data on-chain. Developers can build larger consumer and enterprise applications without facing the same storage burden. Helius now wants to expand this technology base to include privacy-focused infrastructure.

Light Protocol returns to its original mission

Light Protocol will now return to its initial goal of building privacy systems for Solana users. The acquisition pairs its crypto research with Helius’ distribution, infrastructure and market access. The teams plan to build a ZK-based privacy protocol for Solana applications.

According to the announcement, the new privacy infrastructure remains unnamed. However, Helios described it as fully programmable and configurable to meet different user needs. This architecture can support both retail products and enterprise use cases.

Helios It plans to open up its privacy infrastructure to developers in the coming months. This rollout could allow creators to test private transfers, DeFi tools, and custom privacy features. In turn, the Light Protocol could become a core part of Solana’s privacy layer.

Cryptocurrency privacy is gaining new momentum

The deal comes during a broader consolidation phase in the cryptocurrency sector. Venture capital funding has slowed, and many projects have reduced operations or ceased. Stronger infrastructure companies have used acquisitions to expand technical teams and product lines.

Privacy has also returned as a major topic across blockchain development. The Ethereum Foundation has funded several privacy projects Zikash Gain renewed interest. Mumtaz has publicly supported stronger privacy tools across Solana and cryptocurrencies.

Mumtaz said cryptocurrencies need privacy to support broader blockchain use. He compared blockchain privacy to HTTPS, which helped secure online commerce. He also argued that cryptocurrencies still underutilize cryptography, and Helios now aims to change that.