Solana news: Helius Acquires Light Protocol to Advance Onchain Privacy on Solana

Helius Acquires Light Protocol

Helius, a leading Solana infrastructure company, has acquired Light Protocol to strengthen privacy solutions on the Solana blockchain. The acquisition aims to leverage Light Protocol's cryptography expertise and Helius's infrastructure to develop advanced privacy features.

Focus on Zero-Knowledge Privacy

Light Protocol, founded in 2021, initially focused on bringing zero-knowledge (ZK) privacy to Solana. The team later contributed to ZK Compression, a framework co-developed with Helius and launched in 2024. ZK Compression reduces data storage costs on Solana using zero-knowledge proofs, enabling scalable consumer and enterprise applications.

New Privacy Protocol for Solana

The acquisition will see Light Protocol return to its original mission, now supported by Helius's distribution and infrastructure. The combined team plans to build a ZK-based privacy protocol, targeting private payments and private DeFi on Solana. The new chain will be fully programmable and customisable for both retail and institutional use cases.

Industry Context and UK Relevance

This development comes during a period of consolidation in the crypto industry, as venture capital funding declines and firms seek strategic acquisitions. Privacy remains a growing concern, with initiatives also underway on Ethereum and other Layer 1 chains. For UK developers and users, enhanced privacy infrastructure on Solana could support compliance with local data protection standards and foster innovation in privacy-focused applications.

Looking Ahead

Helius intends to open the new privacy infrastructure to developers in the coming months. This could present opportunities for UK-based projects to integrate advanced privacy features into their Solana-based applications, supporting both consumer and institutional needs.