Polygon launched a new private stablecoin payments feature aimed at institutions and enterprises, through an integration with the Hinkal privacy protocol. The tool allows users to route transactions through a shielded pool, concealing senders, recipients and amounts on-chain. Verification is backed by zero-knowledge proofs.
The initiative aims to bridge the gap between the operational demands of institutional finance and the current capabilities of public networks. “Confidentiality has been the biggest gap between onchain rails and what institutional finance actually needs to move serious stablecoin volume,” the Polygon team stated. Community figure known as Smokey specified that the privacy being sought is operational, not regulatory.
For onchain payments to go mainstream, businesses need privacy.
Not “hide from regulators” privacy.
Operational privacy.
Payroll, vendor payments, treasury flows, supplier relationships, customer payments. None of that should be broadcast to the entire market by default.… https://t.co/BKFZW0cUk3
— smokey (@Smokey_) May 4, 2026
The system preserves regulatory compliance mechanisms: each private transaction goes through a KYT —Know Your Transaction— process before execution, and users can generate audit files to present to tax authorities or regulators. Polygon emphasized that “privacy means opacity for the market, not for regulators.”
Source: https://polygon.technology/blog/private-payments-are-live-on-polygon
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