Polygon Wallet Launches Private Stablecoin Payments

Polygon, an Ethereum scaling network, has launched a new feature in its wallet enabling private stablecoin payments, allowing users to send tokens like USDC and USDT without revealing the sender, receiver or amount on the public blockchain.

The "Privately Send" option, now available at wallet.polygon.technology, routes transactions through a shielded pool provided by privacy protocol Hinkal. Zero-knowledge proofs verify the transfers' validity while concealing details from external observers. The system is noncustodial, with funds remaining under user control, and every transaction undergoes Know Your Transaction (KYT) screening for compliance. Users can generate audit files for regulators or tax authorities as needed.

Polygon described the update as addressing a critical barrier to institutional adoption. "Confidentiality has been the single biggest gap between onchain rails and what institutional finance actually needs to move serious stablecoin volume," the company stated. "Banks, treasuries and payments teams already live with confidentiality on traditional rails. They won't move operational flows onto a ledger that broadcasts every counterparty and every amount to every...