Hyli: the future of institutional blockchain adoption

Privacy is vital infrastructure for institutional blockchain adoption. But privacy doesn’t mean opacity: institutions need selective disclosure to protect sensitive data while meeting compliance obligations and allowing for efficient audits.

Hyli was built for this.

A tradeoff that shouldn’t exist

Blockchains offer precious affordances. They can remove the complexity and costs of post-trade reconciliation across siloed system.

But public chains are too transparent for most institutions. Trade flows, counterparties, and timing are visible by default. Trade strategies need confidentiality, and many details should not be shared with the entire market.

Fully private blockchains sit at the other extreme. If they cannot follow compliance rules and support KYC, AML, and audit requirements, they are hard to use in regulated finance.

That leaves institutions stuck between transparency they can’t accept and privacy they can’t implement.

The Hyli approach: selective disclosure through proof-driven settlement

Off-chain execution for privacy

Hyli keeps sensitive data off-chain. Transactions execute in a private environment, and only cryptographic proofs are posted onchain for settlement and finality.

In practice, this means that the chain can verify that the rules were followed without seeing the underlying data.

The same model applies to identity. With selective disclosure, participants can prove KYC or AML compliance without revealing personal data, full documents, or internal records.

Pipelined proving for scalable settlement

Proofs on Hyli are fully decoupled from consensus. Transactions are submitted, provers work on them in parallel, and settlement happens asynchronously. This architecture distributes the proving workload and allows apps to manage their own proving costs independently.

The result: higher throughput, lower latency, and a more flexible cost model for institutions deploying at scale.

Purpose-built infrastructure for transparently trustable code

Hyli was built from the ground up, with no forked codebase or inherited technical debt. The result is a clean, auditable stack that simplifies due diligence and security review.

Our consensus layer, Autobahn, supports dedicated lanes for specific use cases. A stablecoin issuer, for example, could run transactions on a lane reserved for compliant payment flows, with predictable performance and isolation from unrelated traffic.

Account abstraction from day one

Hyli supports account abstraction natively, giving institutions full flexibility over wallet design and user experience. This enables seamless onboarding flows, custom authentication schemes, and integration with existing identity systems.

Use cases

Hyli is built for regulated financial activity that still needs confidentiality. Examples of use cases include:

• Tokenized assets. Hyli enables private settlement for real-world assets without exposing holdings, counterparties, or execution details.
• Stablecoins and payments. Hyli supports programmable money with compliance built in. Policies can be enforced at the rail level while sensitive transaction data stays protected. Dedicated lanes can isolate payment traffic for predictable throughput.
• Decentralized finance. Hyli makes it possible to lend, trade, and manage collateral with guardrails. Market participants can reduce front-running risk and information leakage while still proving that rules were followed.

Using Hyli for regulated onchain finance

European regulation is catching up to digital money. Regulations like MiCA, AMLR, and DORA are making requirements clearer and raising the bar for operational readiness. At the same time, tokenization is booming, with projections going as high as $400 billion for 2026.

Institutions want the efficiency of onchain settlement, but they cannot accept default transparency. This is the moment for infrastructure that reconciles privacy and compliance instead of treating them as a tradeoff: that’s Hyli.