The Midnight Foundation today announced a strategic integration with Blockdaemon aimed at making privacy-preserving application development faster and easier for developers and enterprises. This move brings together Midnight’s zero-knowledge architecture with Blockdaemon’s institutional infrastructure, a combination that the two organizations say will increase institutional access to privacy-first blockchain capabilities.
Over the past year, privacy has regained importance as crypto becomes more and more mainstream. Andreessen Horowitz’s State of Crypto 2025 report underlines that privacy is “coming back to the fore” and points to increasing interest in privacy tools and zero-knowledge systems for rollups, compliance tools and mainstream services. This trend, the report suggests, could be a key factor in the wider adoption of blockchain technology.
Blockdaemon, which provides node management, APIs, staking and custody-related services to a wide range of institutional customers, will integrate Midnight into its product suite, giving its customers direct access to Midnight’s privacy-protecting features. Blockdaemon currently secures more than $110 billion in digital assets on behalf of more than 400 institutional clients, a scale that the Midnight Foundation believes will make it easier for large organizations to pilot and implement privacy-first use cases without building and operating complex, custom infrastructure.
For Midnight, the integration means the privacy-focused tooling and smart contract primitives can be used through familiar developer interfaces. Midnight’s technology, which uses zero-knowledge proofs, including ZK-SNARKs, to validate data without making it public, supports selective disclosure and confidential smart contracts. Midnight’s ZSwap ledger, the Foundation says, enables protected atomic swaps of tokens and metadata in on-chain transactions, a capability considered fundamental to private cross-chain operations and enterprise use.
“Partnering with Blockdaemon significantly lowers the barriers to entry for development teams exploring privacy-first use cases,” said Fahmi Syed, president of the Midnight Foundation. “By combining Midnight’s advanced zero-knowledge architecture with Blockdaemon’s proven infrastructure, we are creating a frictionless path for enterprises and builders to adopt privacy as a core design principle.”
Blockdaemon will in turn integrate Midnight into its trusted node management, APIs and developer tools, allowing institutional customers to deploy, manage and interact with Midnight smart contracts under enterprise security and compliance standards.
“The integration of Midnight’s privacy-first technology into Blockdaemon’s infrastructure marks an important step toward embedding privacy as a mainstream 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 Protocols Officer at Blockdaemon.
Facilitating the adoption of privacy-preserving apps by companies
The announcement comes as regulators and companies increasingly demand privacy controls that can coexist alongside compliance frameworks such as the EU Markets in Crypto-Assets Regulation (MiCA) and the General Data Protection Regulation (GDPR). Midnight’s approach allows organizations to adjust privacy levels to meet regulatory requirements, while maintaining verifiability where necessary.
Industry observers see the collaboration as part of a broader effort to make advanced cryptographic techniques such as zero-knowledge proofs accessible to mainstream builders. Rather than forcing companies to hire specialized teams to manage self-managed nodes and custom privacy infrastructure, this type of integration embeds privacy features into the stacks that institutions already use, reducing costs, operational complexity, and time to market.
Midnight himself launched his foundation earlier this year to guide the network’s growth, promote developer tools, and guide the project toward decentralized governance. The Midnight Network describes its design as “rational privacy,” with the goal of giving users and institutions precise control over what data is exposed and when. Shielded Technologies, the technical delivery arm behind Midnight, has developed the underlying protocol and tools as the ecosystem prepares for broader adoption.
Founded in 2017, Blockdaemon has positioned itself as an institutional gateway to Web3 by offering a range of infrastructure services, from dedicated nodes and APIs to staking and MPC wallets, that major custodians, exchanges and financial firms rely on. Its operations and partnerships with cloud and data center providers provide the foundation for the kind of high-availability and compliance infrastructure Midnight believes is necessary for enterprise deployments.
As Midnight and Blockdaemon begin rolling out integration, businesses and developers will be able to experiment with confidential smart contracts, selective disclosure workflows, and privacy-aware cross-chain transactions through Blockdaemon’s familiar interfaces. The two organizations say they expect the partnership to set a new standard for how privacy and compliance can coexist with accessibility and performance when building Web3 responsibly.
The Midnight Foundation is advancing the development and adoption of Midnight, a privacy-enhancing blockchain developed by Shielded Technologies for confidential smart contracts and selective disclosure. Blockdaemon provides institutional blockchain infrastructure and secures more than $110 billion for more than 400 institutions, including exchanges, custodians and financial firms.