Developers at Polygon have launched a new feature called Private Payments, allowing users to send USDC and USDT privately through the Polygon Wallet.
Every stablecoin transfer on a public chain broadcasts who sent it, who received it, and how much moved.
— Polygon | POL (@0xPolygon) May 4, 2026
For a business moving money, privacy is paramount.
We just launched private payments on Polygon. Here's how it works. pic.twitter.com/8MQpEXHnwh
This solution was developed in collaboration with the privacy protocol Hinkal. It employs ZK proofs to conceal the sender, recipient, and transaction amount. External observers can only see that a valid operation occurred on the network, without access to its financial details.
Source: Polygon.The feature is aimed at institutional use cases:
- corporate transfers;
- transactions between legal entities;
- payments to contractors and suppliers;
- internal transfers between departments;
- B2B segment.
Developers emphasized that the lack of privacy has hindered banks, treasuries, and payment teams from transferring significant volumes of stablecoins on public networks.
It's important to note that privacy here does not equate to complete anonymity. Each transaction undergoes an integrated KYT check before execution—data remains accessible for compliance monitoring but is hidden from the market. Hinkal does not take custody of funds during the transfer, maintaining a non-custodial model.
As a reminder, in January, Polygon Labs acquired two crypto startups for $250 million. Following the acquisition, company representatives announced staff reductions and a strategic shift towards stablecoin payments.