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- Polygon adds private USDC and USDT transfers through the Hinkal-powered wallet option.
- Shielded pools hide the sender, receiver, and amount while keeping transfers verifiable.
- KYT checks remain in place as users keep direct control of funds during transfers.
Polygon has launched private stablecoin payments through its wallet system, adding a new transfer option for USDC and USDT users. The rollout, built with the Hinkal Protocol, keeps sender, receiver, and payment amounts hidden from public on-chain records during live transactions.
The update is shared on Monday in an official release. Polygon said the system uses zero-knowledge proofs to confirm transfers without exposing sensitive payment details.
The feature is now available inside Polygon wallets. Users can choose a “Privately Send” option instead of using the standard transfer flow.
Once an option is selected, the payment moves through a shielded pool powered by Hinkal. The transfer can still be verified, but outside observers cannot see the parties or the amount.
Polygon Keeps Compliance Checks in Private Transfers
Polygon said the model gives users privacy from the market while keeping compliance checks in place. It added that each private transaction goes through KYT screening before execution.
The company described the change as important for businesses that use stablecoins. Public blockchain transfers can reveal payroll, supplier payments, branch movements, and internal fund activity.
Those records are normally visible to anyone watching the network. Polygon said the new process helps reduce that exposure while keeping blockchain payments fast and low cost.
The system is also non-custodial. During the process of transferring user funds, no company or middle service assumes control of their user funds.
Rather, assets are transferred directly between one wallet and another using the protocol. Polygon claimed that this maintains control for users when making the payment.
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The wallet interface has also been updated with the private transfer option and regular sends next to one another. After the selection, the system executes the shielded pool and zero-knowledge proof process in the background.
Polygon indicated that it is an effort to bring digital payments nearer to the privacy of traditional banking. In regular banking, transaction information is not accessible, whereas blockchain information is frequently accessible.
Polygon Pushes Private Payments for Business Use Cases
The company indicated that the feature targets any payments that require confidentiality. It provided examples of worker payments from company branch to company branch, supplier payments, and internal fund movement.
The system fails to eliminate checks to be passed before a transaction is accepted. Polygon stated that privacy implies market transparency, rather than transparency to regulators.
In its X post, Polygon stated that public transfers of stablecoins display the sender, receiver, and amount transferred. It added that businesses require more privacy in cases where they use blockchain rails in money movement in their daily businesses and regular payment flows.
CEO of Polygon Labs, Marc Boiron, also made comments about the launch on X. He said that privacy could have many forms onchain, and Polygon would like to offer various forms of privacy.
Boiron said Railgun has been available since 2021. He explained that the Hinkal-powered alternative is one more option for businesses that require private payments with inbuilt compliance tools.
The implementation provides an additional privacy barrier to the stablecoin payment system of Polygon. It also gives business users a way to move USDC and USDT without making sensitive transfer data public.
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