Polygon Labs has launched a new feature enabling private stablecoin payments within its consumer wallet, utilizing a shielded transfer option developed with privacy protocol Hinkal. This feature, now available for USDC and USDT, allows users to send stablecoins on Polygon without revealing the sender, receiver, or transaction amount onchain. Transfers are processed through a Hinkal shielded pool and verified using zero-knowledge proofs, ensuring transaction validity while maintaining privacy.
The initiative targets institutional payment flows that have avoided public chains due to transparency concerns. Polygon Labs highlights confidentiality as a critical requirement for institutional finance, aiming to attract treasury teams, fintechs, and businesses needing private transaction capabilities. The wallet now includes a "Privately Send" option, routing transactions through Hinkal's shielded pool. The protocol ensures compliance with Know Your Transaction (KYT) screening and operates non-custodially, addressing regulatory concerns. This launch is part of Polygon's broader Open Money Stack initiative, which includes recent partnerships with Visa and Meta.
Polygon Introduces Shielded USDC and USDT Payments with Hinkal
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