Polygon Labs Launches Private USDT and USDC Transfers in Consumer Wallet

Polygon Labs has introduced private stablecoin payments to its consumer wallet, launching a new “Privately Send” feature built on the privacy protocol Hinkal.

The feature supports USD Coin (USDC) and Tether (USDT), allowing users to transfer funds without revealing the sender, recipient, or transaction amount on-chain. Instead, transactions are routed through a shielded pool and verified using zero-knowledge proofs, which confirm validity without exposing sensitive details.

Polygon says the feature is designed with institutional use cases in mind, such as treasury operations, payroll, and internal settlements, where full on-chain transparency has often posed challenges.

Despite the added privacy, the system incorporates Know Your Transaction (KYT) checks and remains non-custodial. The company also stressed that while transactions are obscured from public view, they remain accessible to regulators, addressing compliance concerns about shielded transfers.

Source: https://polygon.technology/blog/private-payments-are-live-on-polygon