Developers at Polygon have launched the Private Payments feature, enabling the private transfer of USDC and USDT through the Polygon Wallet.
Every stablecoin transfer on a public chain broadcasts who sent it, who received it, and how much moved.
For a business moving money, privacy is paramount.
We just launched private payments on Polygon. Here’s how it works. pic.twitter.com/8MQpEXHnwh
— Polygon | POL (@0xPolygon) May 4, 2026
The solution is implemented in collaboration with the privacy protocol Hinkal. ZK-proofs are used to conceal the sender, recipient, and transaction amount. External observers can only see the fact of a valid operation on the network, not its financial details.
The feature is aimed at institutional scenarios:
- corporate transfers;
- settlements between legal entities;
- payment for contractor and supplier services;
- internal transfers between divisions;
- B2B segment.
Developers emphasized that the lack of privacy has hindered banks, treasuries, and payment teams from transferring significant volumes of stablecoins on public networks.
Privacy here is not equivalent to full anonymity. Each operation undergoes an integrated KYT check before execution—data remains accessible for compliance monitoring but hidden from the market. Hinkal does not hold funds during the transfer: the model remains non-custodial.
Back in January, Polygon Labs acquired two crypto startups for $250 million. Following the deal, company representatives announced staff reductions and a strategic shift towards stablecoin payments.