Polygon: ZKP private payments go live; USDC and USDT can be sent privately

On May 5, Polygon announced on its official X account that it is partnering with Hinkal to launch a privacy stablecoin payment solution based on zero-knowledge proofs (ZKP). It supports private transfers of USDC and USDT via the Polygon network. The solution also integrates a transaction screening (KYT) mechanism, allowing regulators to verify a transaction’s compliance while protecting transaction privacy.

Technical architecture and feature details

According to Polygon’s May 5 announcement, this private payment solution uses zero-knowledge proofs (ZKP) to allow users to send USDC and USDT without revealing the sender, the recipient, or the transaction amount, and without involving custody of funds.

Polygon’s announcement explains that the solution is realized through a shielded liquidity pool built by Hinkal. A zero-knowledge provider (ZKP) can manage confirmations without accessing specific transaction details; the shielded liquidity pool also includes a KYT mechanism for regulators to verify the legality of transactions.

Polygon quoted a statement from its partner in the announcement: “Confidentiality is not an optional feature, but a fundamental requirement.”

Target audience and market positioning

According to Polygon’s May 5 announcement, the solution is designed to provide institutions with privacy protection similar to traditional banking—keeping transaction counterparty information confidential to the market, while allowing regulators to access it. Polygon said this model addresses institutional needs in payments, payroll, and finance, offering a solution for institutions that do not want to sacrifice financial information confidentiality for the sake of speed and cost advantages.

Current availability and future plans

According to Polygon’s May 5 announcement, the private payment feature has been launched in the Polygon wallet. Users can use the private transfer feature through the option added to the wallet. Polygon said in the announcement: “We are developing more privacy products to improve the wallet, and we will share specific details once each feature is ready.”

FAQ

How does Polygon’s private payment feature protect transaction privacy?

According to Polygon’s May 5 announcement, the feature uses ZKP and a shielded liquidity pool built by Hinkal to complete transaction confirmations without revealing the sender, the recipient, or the transaction amount, and without involving custody of funds.

Does the private payment feature meet regulatory requirements?

According to Polygon’s May 5 announcement, the shielded liquidity pool integrates a KYT (transaction screening) mechanism for regulators to verify the legality of transactions, maintaining compliance while protecting user privacy.

Where is this feature available today?

According to Polygon’s May 5 announcement, the private payment feature has been launched in the Polygon wallet, and users can use the private transfer feature through the option added in the wallet.