EY Debuts Privacy Sandbox on March 26 to Lower ZK Adoption Barriers
Ernst & Young (EY), a member of the "Big Four" accounting firms, launched its Blockchain Privacy Sandbox on March 26, 2026, a significant step to bridge enterprise systems with public blockchains. The web-based development environment allows organizations to experiment with privacy-preserving smart contracts on Ethereum Virtual Machine (EVM)-compatible networks. By using Starlight, an open-source Zero-Knowledge Proof (ZKP) compiler developed by EY, the sandbox removes the need for complex local setups and specialized expertise, directly addressing a primary obstacle to corporate blockchain adoption.
Organizations increasingly want to use public blockchains while protecting sensitive business data. The EY Blockchain Privacy Sandbox provides a practical environment to experiment with privacy-preserving smart contracts and validate use cases before committing to full-scale implementation.
— Clare Adelgren, EY Global Blockchain Leader.
COTI Nightfall Launch Validates EY's Open-Source Strategy
On the same day as the sandbox announcement, crypto infrastructure firm COTI revealed its plans to launch COTI Nightfall, an Ethereum ZK Rollup. This development serves as immediate validation for EY's ecosystem strategy, as Nightfall is built upon the same open-source ZKP technology EY originally developed and released to the public domain. COTI's deployment is planned for its testnet in the coming weeks, with a mainnet launch scheduled for later in 2026.
This commercial adoption demonstrates a clear path from experimentation in EY's sandbox to real-world deployment. COTI is positioning Nightfall for enterprise-grade compliance and institutional workflows, creating a direct link between traditional corporate needs and decentralized infrastructure. The collaboration highlights a growing trend of established financial players providing foundational technology for the Web3 ecosystem, a move supported by EY's leadership.
Initiative Targets Projected $7.6B Enterprise Privacy Market
EY's strategic focus on privacy infrastructure is timed to capture a significant share of the expanding market for ZKP technology. A report by Grand View Research projects the global ZKP market will grow to approximately $7.6 billion by 2033, driven by increasing enterprise demand for data confidentiality on public ledgers. The sandbox is designed to help businesses assess the feasibility of ZKP applications before integrating them into core enterprise systems.
This push for accessible privacy tools aligns with broader institutional market trends, including the tokenization of real-world assets and the search for compliant decentralized finance (DeFi) solutions. By providing a secure and simplified on-ramp for ZKP experimentation, EY is positioning itself as a key enabler for corporations looking to harness the transparency of public blockchains without compromising sensitive business data.
