Key Highlights
- Polygon launched private USDC and USDT payments using zero-knowledge proofs to hide transaction details.
- Wallet users can now send via a “Privately Send” option through a shielded pool.
- The system keeps compliance checks through KYT screening and is designed for businesses needing payment privacy.
Polygon, a blockchain platform, announced the rollout of private stablecoin payments on its network through its wallet system in partnership with Hinkal Protocol.
According to the official release, the update, shared on Monday, allows users to send USDC and USDT on Polygon without exposing sender, receiver, or transaction amounts onchain. The firm said it uses zero-knowledge proofs to verify transfers while keeping details hidden from public view.
“Every stablecoin transfer on a public chain broadcasts who sent it, who received it, and how much moved. For a business moving money, privacy is paramount. We just launched private payments on Polygon,” the firm wrote on X.
Shielded pool keeps transactions hidden
The feature is now active inside Polygon wallets, where users can choose a “Privately Send” option instead of the standard transfer flow.
When selected, transactions are routed through a shielded pool powered by Hinkal instead of being recorded as a fully visible onchain transfer, which confirms that a transaction is valid without revealing sensitive data. Observers can still verify that a transfer happened, but they cannot see the parties involved or the value sent.
Polygon explained that “privacy here means opacity to the market, not opacity to regulators. Each private transaction passes through KYT screening before execution.” This means compliance checks are still applied before transactions are approved, even though the transaction details remain hidden from public blockchain observers.
Direct transfers without custody
The system has a non-custodial feature, meaning no company or middle service will hold the user’s money during the transfer. Instead, the money is moved directly from one wallet to another using the protocol. In short, there is no point where a third party controls the assets.
This is intended to preserve the speed and low-cost nature of blockchain payments while adding a privacy layer typically associated with traditional financial systems.
Built for real business payments
Polygon said the private payment system is built for use cases where confidentiality matters most. These include paying workers, sending money between company branches, paying suppliers, or handling internal transfers. On public blockchains, all of this would normally be visible, which can create problems for privacy.
Inside the Polygon wallet interface, users now see a private transfer option alongside regular sends. If they choose private transfer, the system automatically uses the shielded pool and zero-knowledge proof process to complete the transaction safely.
Polygon says this feature is meant to make blockchain payments closer to traditional banking privacy, while still keeping blockchain speed and low cost. In normal banking systems, transaction details are not visible to the public, but on blockchain, they usually are. This new system tries to close that gap.
Marc Boiron, CEO of Polygon Labs, commented on the development in an X post, stating, “Privacy can take multiple shapes onchain. Our job is to make the type of privacy you want available. We have had Railgun available since 2021. Now you get another option that is easy for businesses to incorporate for their payments needs with compliance options built into it to meet their regulatory obligations.”
Broader context
Most blockchain networks are inherently transparent, allowing anyone to track wallet activity and transaction flows. While this supports openness, it can be limiting for businesses that require confidentiality.
With this update, Polygon is attempting to bridge that gap by offering privacy features alongside compliance and auditability, aligning blockchain payments more closely with traditional financial privacy standards.
Also Read: Visa Expands Stablecoin Rails With Polygon Integration
