Polygon wallet launches privacy payment features for USDC and USDT

According to The Defiant, Polygon Labs launched a stablecoin privacy payment feature in its consumer wallet on Monday, in collaboration with the privacy protocol Hinkal, currently supporting USDC and USDT.

It is reported that the Polygon wallet has added a "Privately Send" option, allowing users to send stablecoins on Polygon through Hinkal's shielded pool, where the sender, receiver, and transfer amount will not be publicly disclosed on-chain. The related transfers will be verified through zero-knowledge proofs, enabling external observers to confirm that valid transfers have occurred, but they cannot see the participants or the amounts.

Polygon Labs stated that this feature is aimed at institutional payment scenarios, designed to address the issue of excessive transparency in public chain payments. The design also incorporates Know Your Transaction (KYT) screening and operates in a non-custodial mode, meaning no operating party holds user assets during the transfer process.