Polygon Wallet launches privacy payment functionality for USDC and USDT.

According to Mars Finance, Polygon Labs launched a stablecoin privacy payment feature in its consumer wallet on Monday. This feature, developed in partnership with the privacy protocol Hinkal, currently supports USDC and USDT. The Polygon wallet now features a "Privately Send" option, allowing users to send stablecoins from Polygon through a Hinkal shielded pool. The sender, receiver, and transfer amount are not publicly disclosed on the blockchain. The transfer is verified using zero-knowledge proofs; external observers can confirm the transaction has occurred but cannot view the participants or the amount. Polygon Labs stated that this feature targets institutional payment scenarios and aims to address the issue of excessive transparency in public blockchain payments. The design also includes a built-in Know Your Transaction (KYT) screening process and operates on a non-custodial model, meaning no operator holds user assets during the transfer process.