How Polygon’s New Private Stablecoin Payments Work for Businesses and Institutions

TLDR

• Polygon has launched private stablecoin payments using zero-knowledge proofs via a Hinkal integration
• Transactions are hidden from the public but remain visible to regulators through KYT screening and audit files
• Polygon’s stablecoin market cap hit an all-time high of $3.6 billion on April 10
• Aptos launched its own privacy coin, Confidential APT, on April 24
• Western Union launched a USD-pegged stablecoin on Solana on the same day as Polygon’s announcement

Polygon has rolled out a new wallet feature that lets users send stablecoin payments privately on its network. The goal is to bring more businesses and financial institutions onto the chain.

The feature routes transactions through a shielded pool. Zero-knowledge proofs handle the verification, meaning the sender, receiver, and amount are all hidden from public view on the blockchain.

The feature was built through an integration with Hinkal, a privacy protocol. Polygon community lead Smokey described it on X as “operational privacy,” not a tool to hide activity from regulators.

Every private transaction passes through KYT, or Know Your Transaction, screening before it goes through. Users can also generate audit files to share with tax authorities or regulators if required.

Polygon said confidentiality has been the biggest gap between blockchain payment rails and what institutional finance needs. It argued that banks and payment teams already work with confidential systems in traditional finance and are unlikely to move large volumes to a public ledger.

The Push for Onchain Privacy

Privacy was a major theme across crypto in 2025. Many tokens tied to privacy projects gained in value even when the broader market was down.

Polygon is not the only blockchain making a privacy move. Layer-1 chain Aptos launched Confidential APT on April 24. That coin is pegged to the value of the Aptos token and also uses zero-knowledge proofs to hide transfer details.

The stablecoin market on Polygon has been growing. Its total stablecoin market cap reached an all-time high of $3.6 billion on April 10, according to DefiLlama. That made it the eighth-largest stablecoin chain at the time.

Stablecoin Activity Picking Up

Interest in stablecoins has been rising since the US passed the GENIUS Act in July last year. The law was seen as friendly to stablecoins and helped push up trading volumes across the asset class.

Western Union also made a move on Sunday, launching a USD-pegged stablecoin called USDPT on Solana. It was the latest traditional finance company to enter the stablecoin space.

Polygon’s new private payment feature is now live and available to users on its network.

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