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<a href="https://x.com/Fhenix" rel="noopener noreferrer nofollow">@Fhenix</a> has brought its CoFHE solution live on <a href="https://x.com/Ethereum" rel="noopener noreferrer nofollow">@Ethereum</a> and the Layer 2 rollup network <a href="https://x.com/Arbitrum" rel="noopener noreferrer nofollow">@Arbitrum</a>, offering native Fully Homomorphic Encryption (FHE) on EVM execution chains. The launch lets smart contracts compute on encrypted data without revealing it, and it introduces a Dual Mode Token standard aimed at solving the liquidity split common in privacy tools.
<h2 id="what-cofhe-brings-to-ethereum-and-arbitrum">What CoFHE brings to Ethereum and Arbitrum</h2>
FHE is a form of cryptography that lets a computer do math on data without decrypting it first, <cite>as Unchained explains</cite>. <cite>According to the project, CoFHE went live on the Ethereum and Arbitrum mainnets on October 21, 2026.</cite><cite>Until the launch, CoFHE had run only on public test networks.</cite>
The design moves the heavy work away from the host chain. <cite>According to Fhenix, CoFHE handles the encrypted computation off-chain and passes the results back to contracts on the two chains.</cite><cite>Developers add it with one Solidity import and encrypted data types that, the company said, behave like normal variables.</cite>
The rollout is gated at first. <cite>The mainnet starts out permissioned, so contracts must be approved for an allowlist before they can use CoFHE in production.</cite><cite>Testnets remain fully open to developers and users.</cite><cite>The company also said Consensys Diligence audited the system.</cite><cite>CoinTurk noted that a publicly accessible audit report had not been located.</cite>
<h2 id="dual-mode-tokens-aim-to-avoid-fragmented-liquidity">Dual Mode tokens aim to avoid fragmented liquidity</h2>
The Dual Mode Token standard lets users and smart contracts move between public and encrypted balances without splitting an asset into separate pools. <cite>It gives a compatible token both public and confidential balances under one canonical contract address.</cite><cite>A holder can shift a balance into confidential mode in one transaction and switch it back when needed, according to the company.</cite>
<cite>Fhenix said those tokens never leave their home chain, are not wrapped or bridged, and keep working with existing wallets, exchanges and DeFi apps.</cite><cite>Arbitrum said the mainnet launch brings FHE-driven privacy features to its network, and users can now switch transactions from public to private mode through Fhenix Dual Mode.</cite>
There are caveats. <cite>Applications still have to integrate the confidential interfaces.</cite><cite>The announcement also supplied no sustained application throughput, latency distribution or cost benchmark.</cite>
More launches are planned. <cite>Two apps launched on day one, three more are planned for the fourth quarter, and a confidential stablecoin is in the works with Tandem.</cite>
Sources:
<a href="https://unchainedcrypto.com/fhenix-goes-live-on-ethereum-and-arbitrum-letting-contracts-compute-on-hidden-balances/" rel="noopener noreferrer nofollow">Unchained: Fhenix goes live on Ethereum and Arbitrum</a> <a href="https://cryptobriefing.com/fhenix-launches-cofhe-ethereum-arbitrum/" rel="noopener noreferrer nofollow">Crypto Briefing: Fhenix launches CoFHE coprocessor on Ethereum and Arbitrum</a> <a href="https://hackernoon.com/fhenix-launches-cofhe-on-ethereum-and-arbitrum-for-confidential-smart-contracts" rel="noopener noreferrer nofollow">HackerNoon: Fhenix launches CoFHE for confidential smart contracts</a>

Arbitrum welcomes Fhenix Encryption mainnet

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