Flare has developed a privacy layer, Encrypted Finance, for the XRP Ledger and Bitcoin, enabling confidential transactions without revealing wallet identities. The system, currently live on Flare's Coston2 testnet, uses Flare Data Connector to verify events on the XRP Ledger and Bitcoin while maintaining user anonymity. Transactions are processed in encrypted environments via Flare Confidential Compute, ensuring privacy. The infrastructure supports 48 transaction types, including swaps and cross-chain transfers, and addresses the transparency challenges faced by institutional participants on public blockchains. It includes selective disclosure mechanisms for compliance, allowing users to prove solvency or transaction history without full public disclosure. A mainnet launch date has not been announced.