The solution, which uses zero-knowledge proofs to verify every transfer, will allow companies moving large volumes to maintain the secrecy of these movements, improving transaction confidentiality. The system implementation encompasses KYT screening from regulators.
Key Takeaways:
Polygon partnered with Hinkal to launch a ZKP-powered private payment solution for USDC and USDT. Polygon claims this release gives institutions bank-like privacy while retaining KYT compliance. Available now in the Polygon wallet, the network will next develop more privacy offerings for users. Polygon Implements Private Payments to Entice Institutional AdoptionFor this solution to work, Hinkal leverages a special shielded pool, with ZKPs managing confirmations without accessing specific details. Nonetheless, the shielded pool involves know-your-transaction (KYT) screening for regulators to verify the legality of the operations.
With this move, Polygon claims to deliver an equivalent to how banking transactions work today, where operations are private for the market but can be accessed by regulators, in a faster, cheaper, and always available network.
The feature is already available to users of the Polygon wallet, who have a new option available to use this private send functionality. Polygon hinted at developing more confidentiality-oriented functions in the near future, stressing that it was “working on more privacy offerings to complement the wallet and will share specifics as each piece is ready.”
