The Midnight Foundation today announced a strategic integration with Blockdaemon aimed at making the development of privacy-preserving applications faster and easier for developers and enterprises. The move brings together Midnight’s zero-knowledge architecture and Blockdaemon’s institution-grade infrastructure, and both organizations say the combination will expand institutions’ access to privacy-first blockchain capabilities.
Over the past year, privacy has come back into the spotlight as cryptocurrencies move into the mainstream. Andreessen Horowitz’s State of Crypto 2025 report highlights that privacy is “coming back to the forefront,” noting increased interest in privacy tools and zero-knowledge systems across rollups, compliance tools, and mainstream services. The report suggests that this trend could be a key factor in the widespread adoption of blockchain technology.
Blockdaemon, which provides node management, API, staking and custody-related services to a wide range of institutional customers, will integrate Midnight across its product suite, giving customers direct access to Midnight’s privacy protection capabilities. Blockdaemon currently secures over $110 billion in digital assets on behalf of over 400 institutional clients. The Midnight Foundation says this will make it easier for large organizations to experiment with and deploy privacy-first use cases without having to build and operate complex bespoke infrastructure.
For Midnight, this integration means privacy-focused tools and smart contract primitives available through a familiar developer interface. Midnight’s technology uses zero-knowledge proofs such as ZK-SNARK to verify data without revealing it, supporting selective disclosure and confidential smart contracts. Midnight’s ZSwap ledger enables secure atomic swaps of tokens and metadata in on-chain transactions, a foundational feature for private cross-chain activity and enterprise use, according to the foundation.
“Partnering with Blockdaemon significantly lowers the barrier to entry for development teams seeking privacy-first use cases,” said Fahmi Syed, President of Midnight Foundation. “By combining Midnight’s advanced zero-knowledge architecture with Blockdaemon’s proven infrastructure, we are building a frictionless path for enterprises and construction companies to embrace privacy as a core design principle.”
Blockdaemon, for its part, will incorporate Midnight into trusted node management, APIs, and developer tools to enable institutional customers to deploy, manage, and operate Midnight smart contracts based on enterprise security and compliance standards.
“Integrating Midnight’s privacy-first technology into Blockdaemon’s infrastructure marks a significant step toward embedding privacy as the default standard in enterprise blockchain environments. This partnership will enable institutions to meet evolving compliance requirements while maintaining the scalability, reliability, and interoperability they expect from Blockdaemon’s infrastructure,” said Demetrios Skalkotos, Chief DeFi and Protocol Officer at Blockdaemon.
Making it easier for businesses to adopt privacy protection apps
The announcement comes as regulators and companies increasingly demand privacy controls that can coexist with compliance frameworks such as the EU’s Market for Cryptoassets (MiCA) regulation and the General Data Protection Regulation (GDPR). The foundation says Midnight’s approach allows organizations to adjust privacy levels to meet regulatory requirements while maintaining verifiability as needed.
Industry observers see the partnership as part of a broader effort to make advanced cryptographic techniques, such as zero-knowledge proofs, available to mainstream builders. Rather than forcing enterprises to hire specialized teams to run self-managed nodes or bespoke privacy infrastructure, this type of integration embeds privacy capabilities into the stack that enterprises already use, reducing cost, operational complexity, and time to market.
Midnight itself launched a foundation earlier this year to manage the network’s growth, promote developer tools, and shepherd the project toward decentralized governance. Midnight Network describes its design as “reasonable privacy” and aims to give users and institutions fine-grained control over what data is made public and when. Midnight’s technology delivery arm, Shielded Technologies, has been developing the underlying protocols and tools as the ecosystem prepares for widespread adoption.
Founded in 2017, Blockdaemon positions itself as the institutional gateway to Web3 by providing a suite of infrastructure services that large custodians, exchanges, and financial companies rely on, from dedicated nodes and APIs to staking and MPC wallets. Midnight says the company’s operations and partnerships with cloud and data center providers support the highly available, compliant infrastructure required for enterprise deployments.
As Midnight and Blockdaemon begin rolling out the integration, enterprises and developers will be able to experiment with confidential smart contracts, selective disclosure workflows, and privacy-aware cross-chain transactions through Blockdaemon’s familiar interface. The organizations say they hope this partnership will set a new standard for how privacy and compliance can coexist with accessibility and performance in responsible Web3 construction.
The Midnight Foundation is driving the development and deployment of Midnight, a privacy-enhancing blockchain developed by Shielded Technologies for confidential smart contracts and selective disclosure. Blockdaemon provides institutional blockchain infrastructure and has secured over $110 billion for over 400 institutions spanning exchanges, custodians, and financial companies.
