Adeniyi Abiodun, co-founder of Mysten Labs, said the new feature will allow users to use Sui’s network without revealing their holdings to the entire internet. He is banking on this capability to encourage institutions to build on Sui to provide controlled visibility of their operations.
Important points:
- Sui announced that stablecoin transactions will soon become private by default, resolving key institutional hurdles.
- By eliminating a major friction point in the market, Sui enabled fee-free stablecoin transfers, driving mass adoption.
- Currently in testing, Mysten Labs plans to extend this privacy to three assets next: stocks, bonds, and cryptocurrencies.
Sui to include private stablecoin transactions on mainnet
Privacy issues in blockchain, once a thorn in the side, are now a desirable feature in projects seeking institutional participation.
Blockchain project Sui has announced that it will implement private transactions in the near future to address the issue of a fully public approach for users and institutions conducting online transactions.
Adeniyi Abiodun, co-founder of Mysten Labs, explained that while traditional networks protect transaction history by withholding information and maintaining confidentiality, blockchain networks cannot operate in the same way due to their design.
Sui’s privacy rollout will make all stablecoin transactions private by default, primarily to prevent users who use these assets for payments from having their entire payment history exposed to third parties.
Abiodun declared that only senders and recipients can observe the sending and receiving of funds and no other data will be shared.
He also revealed that Sui’s privacy approach will allow regulators and issuers to be transparent about what users are doing with their tokens. This differs from traditional privacy schemes that impose complete privacy on regulators and even publishers.
Abiodun explained that this feature has already been tested and will be expanded to stocks, bonds, and even crypto assets at a later date.
In April, Abiodun cited institutional interest that such a movement could awaken.
“Companies that want to issue bonds, stocks, or RWAs on-chain need visibility that is controlled by the issuer. Companies must decide that only the sender, receiver, and possibly regulators can see the details. Once privacy is enabled, Sui provides it to companies at the protocol level.” he said.
Last week, Sui also enabled gasless stablecoin trading, allowing all users to trade for free with no SUI fees, eliminating one of the biggest friction points in the mass adoption of stablecoin payments.
