The Polygon team unveiled a private transaction feature in its wallet, allowing users to conceal the sender, recipient, and transfer amount while maintaining compliance through KYT checks and audit capabilities.
Polygon announced the launch of a new feature in its crypto wallet that enables confidential transfers in stablecoins USDC and USDT. The solution is designed for businesses and institutional users.
The feature was developed in partnership with the Hinkal privacy protocol. It relies on routing transactions through a shielded pool using zero-knowledge proof (ZKP) technology, which allows transactions to be verified without revealing underlying data. A new “Privately Send” option was added to the wallet.polygon.technology interface, letting users choose a private transfer mode. In this mode, external observers can confirm that a transaction occurred but cannot access information about the participants or the amount.
The introduction of private payments is aimed at corporate use cases where disclosing payment data creates operational and competitive risks. The new feature can be used for:
- contractor payments;
- treasury management;
- internal transfers between legal entities;
- settlements between counterparties.
Polygon emphasizes that privacy is a critical requirement for scaling stablecoin usage in corporate finance. Banks, treasury departments, and payment teams aren’t willing to move operational flows to public networks where all transaction details are exposed. According to the company, the lack of privacy limited the volume of corporate transfers on blockchains.
At the same time, the new feature remains compliant with regulatory requirements. All private transactions undergo Know Your Transaction (KYT) checks before execution, and users can generate audit reports for regulators and tax authorities.
The launch comes amid growing interest in privacy-focused solutions. For example, Circle is developing a new private stablecoin, USDCx, on the Aleo blockchain, targeting banks and enterprise clients. Meanwhile, Taurus introduced a smart contract for stablecoins with full transaction privacy and compliance support, and the Ethereum team is working on privacy solutions for both individual and institutional users.
