Foundry’s compliance-first Zcash pool captures one-third of network hashrate, raising centralization concerns
Summary
Foundry has launched an institutional Zcash mining pool that already controls about one-third of new ZEC issuance.
The U.S.-based, compliance-focused pool targets institutional and public miners as a regulated alternative to offshore infrastructure.
Foundry positions Zcash’s selective privacy as more regulation-friendly than rivals like Monero.
Foundry Digital has rolled out an institutional-grade Zcash mining pool that has rapidly scaled to roughly 30% of the network’s total hashrate, consolidating a significant share of new ZEC issuance under a single U.S.-regulated operator.
The Rochester, New York-based firm — already responsible for about 31% of global Bitcoin production — is pitching the pool as a compliant gateway for institutional miners seeking exposure to privacy-focused assets without regulatory friction.
According to the company, the pool has experienced “rapid and sustained” growth since its March 11 launch, onboarding multiple institutional participants. It is designed specifically for professional mining firms and public companies, offering KYC verification, transparent payouts, reporting tools, and round-the-clock support.
CEO Mike Colyer described the move as both a strategic bet on Zcash and a response to institutional demand, noting that while the asset has matured, its mining infrastructure has lagged behind.
Zcash’s use of zero-knowledge proofs enables shielded transactions with optional disclosure, a feature Foundry argues makes it more compatible with regulatory frameworks than fully opaque privacy coins like Monero.
However, the pool’s rapid rise also revives concerns around mining centralization. Foundry already commands a significant share of Bitcoin’s hashrate, and extending similar dominance into Zcash concentrates influence over block production within a single corporate entity.
For Zcash, the trade-off is clear: increased institutional adoption and regulatory alignment come at the cost of a more centralized mining landscape.
