Fhenix Announces New Partnership

The integration brings Fhenix’s CoFHE encrypted-computation layer into the Canopy Stack, allowing developers to build apps that use sensitive data without exposing it.

Fhenix and Canopy are integrating confidential computation into the Canopy Stack, giving developers a direct way to build sovereign onchain apps that keep user data encrypted while it is being used. The integration removes the need for teams to assemble a separate cryptography stack or hire specialist cryptographers before they can ship private application logic.

The new Canopy Confidential App template is powered by Fhenix’s CoFHE coprocessor for fully homomorphic encryption (FHE). Developers will be able to add encrypted computation through a familiar TypeScript library, making confidentiality part of the app from the start rather than a feature added later. The approach extends Canopy’s existing platform model: the stack handles the underlying infrastructure so builders can focus on the application.

Public-by-default infrastructure works for many onchain use cases, but it breaks down when applications handle commercially sensitive, personal, or strategic data. Some teams respond by moving to closed networks. Fhenix and Canopy are taking a different approach: keep the network open while keeping the data encrypted.

How it works

Confidential operations are added through Canopy’s plugin and runtime layer without changing its base consensus. A user’s input is encrypted in the Canopy wallet and submitted as a standard transaction. CoFHE processes the encrypted data offchain, and when a result must be disclosed, a trust-minimized process returns a signed value for Canopy to verify before state is settled. Builders access the flow through familiar tooling, without managing a separate privacy stack or encryption keys.

The core Canopy components are already live, including plugin lifecycle hooks, the state bridge, plugin scaffolding, and the wallet runtime. CoFHE is currently deployed across Ethereum, Arbitrum, and Base. Work on the remaining encrypted-transaction components is in progress.

What it enables

In an onchain game, a player’s hand, units, and map knowledge can remain encrypted. Players submit moves privately and learn only the outcome of each encounter, such as who won, how much damage was dealt, or which territory changed hands.

The same model applies to business workflows. A buyer can open an RFP, receive encrypted bids from multiple suppliers, and publish only the winner and winning price at the deadline. The losing bids do not need to be revealed to the other participants.

Adam Liposky, CEO of Canopy: “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. Until now the answer was to hire a cryptographer. Now it’s a plugin.”

Guy Itzhaki, CEO of Fhenix: “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. Confidentiality becomes part of the application architecture, not a separate system teams have to build around it.”

Availability

The Fhenix integration is in development and is scheduled to roll out in Q4 2026. Canopy is currently live on public testnet, with 16.8k forks and more than 100,000 daily active wallets.

About Canopy

Canopy is an agent-native development framework for launching sovereign onchain apps. It condenses complex application infrastructure into readable code so that agents and non-technical founders can build, deploy, and scale a complete onchain app in a single session, secure from block zero, with no infrastructure to manage. Canopy is backed by Arrington Capital, Borderless Capital, and HashKey, and is currently live on public testnet.

• Website: canopynetwork.org
• Public testnet: testnet.app.canopynetwork.org
• Ecosystem rewards: rewards.canopynetwork.org
• Docs: canopy-network.gitbook.io/docs 

About Fhenix

Fhenix is a protocol building confidential computing infrastructure using fully homomorphic encryption (FHE) for EVM compatible chains. Its core products, including the CoFHE coprocessor and the FHERC-20 token standard, enable smart contracts to compute directly on encrypted data: keeping balances, transfers, and contract state private without ever decrypting onchain. Fhenix makes encrypted computation accessible to Solidity developers with minimal changes to existing workflows. Learn more at www.fhenix.io.

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