Stellar Smart Contracts Get Privacy Upgrade as Privacy Pools Prototype Goes Live
- Stellar is testing a Privacy Pools prototype.
- The network reports about 2 billion transactions in 2025 and 2 99.99% lifetime uptime.
Stellar has started testing a Privacy Pools prototype on its smart contract platform, aiming to support private transfers with compliance options built into the design. The Stellar Development Foundation described the release as a prototype and said the work remains early stage.
The project uses zero knowledge proofs to enable selective disclosure, which lets users keep transaction details private while still proving specific facts when needed. Stellar framed the approach as a way to make privacy compatible with regulated workflows, instead of treating them as opposites.
In its announcement on X, Stellar said the prototype uses ZK powered selective disclosure and a model it says can support compliant private transfers. The foundation also signaled that the code and design may change as testing continues.
Stellar Privacy Pools Prototype. Source: StellarOrg on X
Stellar Adds a Compliance Layer to Private Transfers
The prototype introduces authorized set providers, or ASPs, which can define who may join a privacy pool under specific rules. Stellar presented ASPs as a mechanism for creating private transfer sets that can align with compliance requirements without making all activity public by default.
The Stellar blog post said the goal is selective disclosure rather than blanket anonymity. That means users can keep information private in normal conditions, then disclose only what is required to a counterparty, auditor, or other permitted party.
The foundation has also published separate research focused on privacy strategy, while it tests different approaches through prototypes.
Stellar said it processed about 2 billion transactions in 2025 and moved about $13 billion in real world asset payment volume while keeping 99.99% lifetime uptime, as summarized in our earlier news story.
Meanwhile, Stellar reported faster developer growth and higher smart contract usage, including a 37% rise in full time developers since January and about 1 million contract invocations per day after a 700% quarterly jump.
It also pointed to partnerships, including work with US Bank and PWC to test custom stablecoin issuance on the network
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