Ethereum's zk.money Relaunch Brings New Private Payment Options

Aztec Labs has reintroduced zk.money, a self-custodial wallet that enhances transaction privacy on the Ethereum network. This revamped wallet utilizes the Aztec Network to obscure details such as payment amounts and recipient identities while still allowing users to send funds through recognizable names or links.

Users can deposit stablecoins like DAI, USDC, and USDT into the wallet, although USDC and USDT will be converted to DAI, which is the only currency supported for transactions within zk.money. Despite the private nature of transactions on the Aztec Network, initial deposits from Ethereum remain publicly traceable, exposing the sender and amount.

Each transaction, including deposits, payments, and withdrawals, is limited to $2,500, with a daily deposit cap of $50,000 for all users. These restrictions are considered temporary safeguards during the wallet's early Alpha phase. Aztec Labs aims to raise these limits as confidence in the system builds and further versions are released.

The wallet has not undergone complete auditing, raising concerns about potential bugs and security risks. Aztec Labs CEO Joe Andrews acknowledged these issues and mentioned that a separate system named Oxide will be implemented to verify payments and address software errors.

Andrews stated, “On-chain transactions between two individuals shouldn't mean publishing your financial history to the world.” He emphasized that zk.money is designed to provide users with privacy without compromising their control over funds.

Originally launched in 2021, the previous version of zk.money was discontinued in 2024 after serving over 75,000 wallets and processing more than $100 million in transactions. The new iteration aims to offer enhanced privacy features in a landscape where Ethereum transactions often expose user data.