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DeFi

Sig Network and Midnight Foundation Partner to Bring Privacy to Ethereum Apps

Sig Network announced on Oct 28 a partnership with the Midnight Foundation (@midnightfdn) to let applications on Ethereum use the privacy features of @MidnightNtwrk without moving off the Eth

AnonymousCryptoCompass newsroom
October 28, 2026
3 min read
NEWS
Sig Network and Midnight Foundation Partner to Bring Privacy to Ethereum Apps
CryptoCompass editorial visual for defi coverage.

Sig Network announced on Oct 28 a partnership with the Midnight Foundation (@midnightfdn) to let applications on Ethereum use the privacy features of @MidnightNtwrk without moving off the Ethereum network, according to the Midnight announcement. The integration is currently live on Midnight's stagenet test network. Sig Network is the signing network behind Midnight's Nightmode privacy design, per the same announcement.

How the Sig Network and Midnight Setup Works

Per the Midnight announcement, Sig Network assigns an Ethereum account to each Midnight contract. A threshold of signers that Sig Network describes as independent produces the signatures, and the network signs only what the Midnight contract requests. No single signer can act alone.

The announcement describes the flow in three steps: the Midnight contract validates the request, burns the user's shielded claim and queues one Ethereum transaction. The signers then produce a standard Ethereum signature. Ethereum executes the transaction, and the outcome is attested back to Midnight.

Assets stay on Ethereum throughout, so the design does not use bridges or wrapped tokens. Because the account is an ordinary Ethereum account, it can trade on Uniswap or lend on Aave like any other. The announcement says the contracts can include compliance controls and selective disclosure, so authorised institutions can access information when needed.

Midnight is a privacy-focused partner chain to Cardano developed by Input Output. CoinDesk reported it is built around zero-knowledge proofs, with a dual-state design that separates public and private data while allowing controlled disclosure to auditors, institutions or counterparties.

What Stays Private and What Does Not

According to the Midnight announcement, user balances and identities stay shielded on Midnight, while transaction amounts and timing on the Ethereum side remain public. The stagenet deployment covers Ethereum deposits, Uniswap swaps, Aave supply and withdrawals to any Ethereum address.

The announcement lists use cases including private trading against Uniswap prices, shielded yield on Aave, private positions on prediction and perpetuals venues through a pool, and shielded deposits and withdrawals. For developers, it says they can import a Signet module into Midnight's Compact language to queue Ethereum transactions, and an example repository includes an ERC-20 vault with deposit, withdrawal, swap and supply.

A TokenPost report from Oct 20 on Midnight's Nightmode design, which uses Sig Network's signing system, also describes a working demonstration on stagenet covering Ethereum deposits, Uniswap swaps, Aave supply and withdrawals.

Limits Flagged Before the Announcement

CryptoSlate published an analysis on Oct 22, 2026, before the partnership announcement. It reported that withdrawals from Sig Network's experimental Ethereum vault depend on its signing network, even though the underlying assets stay on Ethereum. It said Sig Network's full-stack demo runs on Midnight stagenet and Ethereum's Sepolia testnet, both public testnets, with a simulated signing responder, so it does not establish that a production group of independent signers is operating.

CryptoSlate also said evaluating a live deployment requires knowing how many signers must cooperate, who operates them, how those arrangements can change and what recovery is possible when ordinary service is unavailable.

On timing, CryptoSlate reported that mainnet support is tied to Midnight's ledger v9 upgrade on Sig Network's roadmap. At the code version it reviewed, the vault's published address registry contains a stagenet address and a blank mainnet entry, which the file defines as not yet deployed or published.

Sources

Midnight: Sig Network partners with Midnight Foundation to bring privacy to applications on EthereumTokenPost: Midnight Details Nightmode Design for Private Cross-Chain DeFiCryptoSlate: A Midnight privacy-vault demo needs outside signers to release Ethereum tokensCoinDesk: Cardano ecosystem gets a privacy boost as Midnight's NIGHT goes live