Polygon launches Wallet Privacy feature to hide senders, receivers and amounts on-chain
Ethereum scaling solution Polygon has launched private stablecoin payments in an effort to attract more businesses and institutions to the chain.
In a statement on Sunday, Polygon introduced its new wallet that allows users to make transactions privately in a protected pool, handled by zero-knowledge authentication. The move is part of integration with privacy protocol Hincal.
“For onchain payments to go mainstream, businesses need privacy,” Polygon Community Leader Smokey said on X. Privacy should not be hidden from supervisors.
Privacy was one of the biggest aspects of crypto in 2025, with many crypto assets tied to privacy projects rising despite the broader market crash last year. Polygon highlighted the importance of privacy, stating that many institutions would not be able to operate on a large scale without it.
“Secretacy is the single biggest gap between on-chain rail and the institutional finance needed to really move serious stablecoin volumes,” Polygon said.
“Banks, treasuries and payment groups live in secrecy on traditional rails. They don't move to a ledger that distributes every counterparty and every amount to every observer on the network.”
Payment processing for private transactions versus standard transactions. Source: Polygon
Polygon's new feature is enabling users to hide transactions from the public while maintaining compliance and auditability. “Privacy is transparency for the market, not transparency for regulators,” Polygon said.
This is done in two key ways. First, every private transaction on Polygon “goes through a KYT (Know Your Transaction) filter before execution.” Meanwhile, Hinkal documents suggest users can generate audit files to submit to tax authorities or regulators.
The move from Polygon comes just weeks after Layer-1 blockchain Aptos made its own privacy play with the launch of the secretive APT coin on April 24.
The coin is pegged to the value of the Aptos (APT) token and uses zero-knowledge authentication to encrypt and verify transaction information.
Related: DeFi can block stolen funds, but not everyone agrees it should.
The total market capitalization on Polygon peaked at $3.6 billion on April 10, according to data from Defillama, making it the eighth largest stablecoin chain.
In July of last year, the US passed the stable coin-friendly Genius Act, which led to higher interest and trading rates on the asset. On Sunday, Western Union became the latest traditional financial institution to launch a stablecoin on Solana with its USD-pegged USDPT.
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