[Resource Topic] 2025/209: NovaTEE: Private Clearing and Settlement on Trusted Execution Hardware

Welcome to the resource topic for 2025/209

Title:
NovaTEE: Private Clearing and Settlement on Trusted Execution Hardware

Authors: Ahmet Ramazan Ağırtaş, James Ball, Michael Belegris, Gustave Charles-Saigne

Abstract:

NovaTEE is a novel private multilateral settlement network designed to address critical inefficiencies in both traditional financial markets and cryptocurrency trading. The current clearing landscape suffers from fragmented capital allocation, restrictive prime brokerage relationships, and prolonged settlement timeframes in traditional finance, while cryptocurrency markets face challenges with over-collateralization, siloed lending pools, and security risks from centralized exchanges.

We introduce a settlement system that leverages Trusted Execution Environments (TEEs) and threshold cryptography to enable secure, private, and efficient settlement of obligations between multiple parties. The system utilizes a distributed key generation model and novel clearing mechanisms to optimize capital efficiency through multilateral netting, while maintaining strong privacy guarantees and regulatory compliance capabilities. By combining TEE-based security with advanced cryptographic protocols, including zero-knowledge proofs and sparse Merkle trees for data verification, our solution enables efficient cross-venue and cross-chain settlement while protecting sensitive trading information. This approach significantly reduces capital requirements for market participants, optimizes transaction costs, and provides institutional-grade clearing infrastructure without compromising on security or privacy. The system’s architecture ensures that no single party has complete access to transaction details while maintaining auditability through a distributed backup network, offering a practical solution for institutional adoption of on-chain settlement.

ePrint: https://eprint.iacr.org/2025/209

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