Hashgraph, the developer behind the Hedera network, has announced the launch of HashSphere, a private, permissioned blockchain tailored for enterprises in regulated industries.
Set to go live in Q3 2025, HashSphere is designed to facilitate low-cost, compliant cross-border stablecoin transactions for banks and asset managers.
Built on Hedera’s (HBAR) technology, HashSphere will offer EVM compatibility, allowing institutions to develop and deploy smart contracts while ensuring adherence to regulatory requirements such as KYC and AML rules.
The platform is currently in beta testing and is working with industry players, including Australian Payments Plus.
Compliance and privacy concerns
Many enterprises have been hesitant to adopt blockchain due to compliance concerns, privacy concerns, and security risks tied to public networks. While public blockchains like Ethereum (ETH) offer transparency and decentralization, they often lack the regulatory safeguards required by financial institutions.
HashSphere aims to provide a controlled environment where only verified participants can engage in transactions, ensuring data protection, security, and regulatory compliance.
Andrew Stakiwicz, head of solutions at Hashgraph, said that HashSphere seeks to eliminate key barriers to enterprise blockchain adoption, including vendor lock-in, scalability limitations, and the security risks associated with public networks.
Unlike public chains that rely on anonymous validators, HashSphere restricts participation to verified entities, offering greater security and control.
Another key feature of HashSphere is its interoperability with Hedera’s public ledger, allowing businesses to leverage the benefits of both private and public blockchain ecosystems.
This flexibility could allow financial institutions to stay compliant while taking advantage of the efficiency and cost savings of decentralized technology.
