Sedona teams up with Fhenix to bring FHE-based confidential finance to Arbitrum

Self-custodial trading platform Sedona said it has entered a partnership with Fhenix to integrate Fhenix’s confidential fully homomorphic encryption, or FHE, infrastructure into Arbitrum. The setup is intended to replace Sedona’s current trusted execution environment security model and keep user balances, positions, and AI agent spending limits encrypted by default. Sedona also said it is in the process of moving from the Seismic ecosystem to Arbitrum, with the Fhenix deployment scheduled after that migration is completed. Unlike trusted execution environments, which rely on hardware trust assumptions, fully homomorphic encryption allows computation to be performed directly on encrypted data. Sedona said this removes the need to trust hardware or operators and gives self-custodial financial privacy a stronger cryptographic foundation. The item was distributed by Chainwire.