Ethereum Foundation: 2026, a Year of Upheaval — Banks in EthSystems’ Sights
The year 2026 will be remembered as a period of profound transformation for the Ethereum Foundation (EF). According to a detailed chronicle published by CoinDesk, the organization steering the development of the world’s second-largest blockchain ecosystem has undergone a series of major upheavals, while its EthSystems arm is now targeting the traditional banking sector. These developments, set against a backdrop of network maturation following the transition to proof-of-stake, are reshaping the Foundation’s role and strategy.
The CoinDesk chronicle, republished by the Protocol Newsletter, provides a comprehensive overview of the changes that have taken place since the start of the year. Internal restructurings, departures of long-standing executives, a strategic reorientation toward institutional applications, and a stated ambition to compete with traditional financial infrastructure: the Ethereum Foundation of 2026 bears little resemblance to the one of 2025.
EthSystems: Banks in the Crosshairs
The EthSystems branch, created to develop blockchain solutions for financial institutions, has considerably expanded its scope of action. Initially focused on pilot projects with a few European banks, EthSystems now targets the entire traditional banking sector, offering solutions for asset tokenization, interbank settlement, and institutional decentralized finance.
Several major international banks have already joined test programs using Ethereum technology to improve the efficiency of their post-trade and settlement operations. The stated goal is to demonstrate that the Ethereum blockchain can serve as a foundational infrastructure for the traditional financial system, delivering significant efficiency gains compared to legacy systems.
This EthSystems push into banking is accompanied by a more aggressive tone from the Foundation’s leaders. Several public statements have emphasized the need to “move beyond proof-of-concept” and enter an industrialization phase for blockchain solutions in traditional finance. Banks are now seen not as distant potential partners, but as customers to be won over.
Internal Upheavals at the Foundation
The Ethereum Foundation itself has not been spared turmoil. The year 2026 has been marked by significant changes in its organization and governance. Several historical figures in Ethereum’s development have left their posts, while new profiles, more business- and institutional-application oriented, have joined the organization.
This generational transition has been accompanied by an overhaul of decision-making processes within the Foundation. The era when major technical decisions were made informally by a small group of developers seems to be over. The Foundation has put in place more formal governance structures, with dedicated committees and expanded consultation processes.
These changes have not been without tension within the Ethereum community. Some veteran developers have voiced concerns about a drift toward excessive “corporate” culture, fearing that the pursuit of institutional adoption may come at the expense of the foundational values of decentralization and openness that made Ethereum successful.
Technical Challenges of 2026
On the technical front, several major initiatives have marked the year. Continuous protocol improvements, particularly in scalability via layer 2 solutions, have significantly reduced transaction costs and increased network capacity. The rollup ecosystem, in particular, has reached a level of maturity that now allows for large-scale applications.
The Foundation has also invested heavily in research on privacy and security, two areas deemed critical for institutional adoption. Zero-knowledge proof protocols have been integrated into the solutions offered by EthSystems, meeting banks’ requirements for transaction confidentiality.
At the same time, the development of Ethereum 2.0, now fully operational after The Merge in 2022, continues with incremental enhancements that strengthen the network’s security, decentralization, and energy efficiency. Ethereum’s energy consumption remains 99.9% lower than during the proof-of-work era, a strong argument for convincing institutions subject to strict ESG criteria.
Implications for the Crypto Ecosystem
The transformation of the Ethereum Foundation and EthSystems’ push into banking have profound implications for the entire crypto ecosystem. On one hand, institutional adoption of Ethereum could pave the way for an unprecedented wave of investments and infrastructure deployments, reinforcing ETH’s position as the reference digital asset for institutions.
On the other hand, the “corporatization” of the Foundation raises questions about the future of Ethereum’s decentralized governance. The tension between the organizational efficiency needed to conquer the institutional market and the preservation of the decentralization principles that distinguish Ethereum is at the heart of current debates within the community.
As the price of Ether hovers around $1,920, these structural developments could have a significant impact on the perception and valuation of the asset over the medium and long term. Institutional investors, in particular, are closely monitoring these developments, viewing them as a key indicator of the maturity of the Ethereum ecosystem.
The Renewed Role of the Protocol Newsletter
The media coverage of these upheavals by CoinDesk’s Protocol Newsletter has played an important role in raising awareness of the scale of changes within the Foundation. The newsletter, known for its in-depth analysis of technical and strategic developments in the Ethereum ecosystem, has published a series of articles tracing the complete timeline of events in 2026, offering readers a unique perspective on the evolution of the organization.
This sustained media coverage has helped fuel debate within the Ethereum community, between those who welcome a necessary professionalization and those who lament a loss of original values. The debate, far from settled, reflects the inherent tensions in the maturation of an ecosystem transitioning from adolescence to adulthood.
Outlook for the Second Half of 2026
The second half of 2026 promises to be equally eventful for the Ethereum Foundation and EthSystems. Several major announcements are expected in the coming months, particularly regarding large-scale banking partnerships and production deployments of tokenization solutions. The course set by the Foundation’s leadership is clear: make Ethereum the reference infrastructure for institutional tokenized finance.
The coming months will also be decisive for the Foundation’s governance. The implementation of the new decision-making structures will be tested by difficult trade-offs among the interests of the ecosystem’s various stakeholders: developers, validators, users, and institutions. The Foundation’s ability to navigate these complex waters will largely determine Ethereum’s trajectory in the years ahead.
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