Zcash Developers Break Free, Launch New Wallet After Splitting from Electric Coin Company

Zcash just got a fresh injection of independence. The core developers behind the privacy-focused cryptocurrency have officially cut ties with their former corporate steward, the Electric Coin Company, and have immediately rolled out a brand-new, community-driven wallet.

Building Beyond the Brand

This isn't just a software update—it's a philosophical shift. The move signals a decisive step towards a more decentralized development model, one that bypasses the traditional corporate gatekeeper. The new wallet, built from the ground up by the same engineers who know Zcash's codebase intimately, promises tighter integration and faster iteration, all while keeping user privacy as the non-negotiable core.

The Road Ahead for Private Transactions

For users, it means direct access to the brains behind the operation, potentially accelerating feature development and security enhancements. For the market, it's a bold bet that a top-tier privacy asset can thrive on pure technical merit and community support, without a centralized marketing budget—a refreshing concept in a sector where hype often outperforms the underlying tech. After all, on Wall Street, they'd call this 'unlocking shareholder value'; in crypto, we just call it building.

The launch proves that sometimes, the most innovative code emerges not from a boardroom, but from a clean break.

TLDR

• Former Electric Coin Company employees are launching a new Zcash wallet called “cashZ” within weeks, using the existing Zashi codebase
• The team left ECC on Wednesday due to disagreements over nonprofit governance rules and the need to move faster
• Former ECC CEO Josh Swihart says the team wants to return to cypherpunk principles and scale Zcash to billions of users
• The Zcash protocol remains unchanged and the same development team continues working on the network
• ZEC token dropped over 21% after the split but recovered slightly to $430, though it remains down 86% from its 2016 all-time high

Former Electric Coin Company employees announced plans to launch a new Zcash wallet called “cashZ” just hours after their departure from the organization. The team left ECC on Wednesday following disputes over nonprofit governance structures.

NEW:Former Electric Coin Company developers have launched "cashZ," a new #Zcash wallet built on the Zashi codebase.

The team aims to scale the privacy coin to billions of users following a governance dispute with the Bootstrap board. pic.twitter.com/sDQiqbvJYa

— Bitcoin.com News (@BitcoinNews) January 8, 2026

Josh Swihart, who previously served as CEO of Electric Coin Company, revealed the new wallet project on Thursday. The wallet will be built using the same codebase as Zashi, the existing Zcash wallet developed by the team at ECC.

The new wallet is expected to launch within a few weeks. Users currently on Zashi will be able to migrate to cashZ without complications.

More than 3,800 people have already signed up for the new wallet through the cashZ website. The team emphasized they are not creating a new cryptocurrency but focusing exclusively on Zcash development.

The departure from ECC stemmed from disagreements about organizational structure and governance. Bootstrap, the 501(c)(3) nonprofit overseeing ECC’s work, clashed with leadership over control and restructuring plans for the Zashi wallet.

Swihart described the situation as a “constructive discharge” of the team. Bootstrap maintained that nonprofit legal and fiduciary constraints limited what actions they could approve.

Why the Team Left

The former ECC team cited three main reasons for starting a new company. First, they want to return to Zcash’s cypherpunk roots and build an organization around those principles.

Second, Swihart argued that fighting for privacy rights requires an organization that can MOVE quickly. Nonprofits focus on following rules while startups prioritize innovation and speed.

Third, the team believes Zcash has grown beyond being a small project. To compete with Bitcoin, Ethereum, and Solana, Zcash needs an organizational structure designed for rapid scaling.

Swihart stated the goal is to “scale Zcash to billions of users.” He believes startups can achieve this scale while nonprofits cannot.

The team stressed that privacy in cryptocurrency should be normal, just like privacy with physical cash. They argue this requires courage and an organization free from bureaucratic constraints.

Swihart pointed to what he called “endless drama” caused by entanglements between nonprofit foundations and tech startups in crypto. He sees the new company structure as a way to avoid these issues.

Market Response

The Zcash token experienced immediate price volatility following the announcement. ZEC dropped more than 21% and fell below $400 on Thursday.

The token saw a minor recovery during early Friday trading. ZEC moved back to around $430 as markets digested the news.

Despite the recent bounce, ZEC remains down 86% from its 2016 all-time high of $3,191. The token is also down 38% from its 2025 peak of nearly $700.

The entire team that built Zashi remains focused on Zcash development. Swihart reassured users that the Zcash protocol itself is completely unaffected by the organizational changes.

The same engineers who worked at Electric Coin Company will continue building on the Zcash network. They will operate under the new corporate structure instead of the nonprofit framework.