Privacy Pools Introduces Private Payment Feature for Stablecoins with Support from Vitalik Buterin

The project Privacy Pools, which is focused on on-chain privacy, has introduced support for stablecoins such as USDT, USDC, and DAI. This will enable the use of these assets for private transactions.

Launched by Amin Soleimani and Zach Cole, the project 0xbow presented Privacy Pools in March. At the heart of the protocol is the Association Set Provider concept, proposed by Ethereum co-founder Vitalik Buterin in 2023. This concept facilitates the separation of funds from suspicious origins while maintaining on-chain privacy.

To utilize Privacy Pools, users need to connect their 0xbow wallet and deposit ERC-20 standard tokens. Through zero-knowledge proofs, they can withdraw anonymized assets to new addresses.

0xbow has secured funding from Bankless, Number Group, Public Works, and several angel investors, including Buterin himself.

It’s worth noting that in 2023, Vitalik Buterin referred to privacy as «the biggest remaining issue» for the Ethereum network and suggested potential solutions.

In 2024, Buterin outlined various use cases for cryptocurrencies in everyday life, including the application of ZKP mechanisms to verify «identity, credentials, or reputation.»