Sedona Integrates Fhenix FHE to Encrypt User Balances, Removes 100% Trusted Hardware Reliance

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According to an announcement on July 15, Sedona, a self-custodial trading platform, partnered with privacy infrastructure firm Fhenix to integrate Confidential Fully Homomorphic Encryption (FHE) into its system. The upgrade replaces Sedona's existing trusted execution environment (TEE) model with cryptographic encryption, ensuring user balances, portfolio positions, and AI agent spending parameters remain encrypted even during processing. The integration removes 100% reliance on trusted hardware. Sedona, which is migrating from the Seismic ecosystem to Arbitrum, plans to deploy the Fhenix infrastructure on Arbitrum once the migration is complete. "Fully homomorphic encryption lets us protect sensitive financial data through mathematics rather than hardware," said Sedona founder Tyler Maxwell.
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