Khan from the Stellar Development Foundation explains Stellar Private Payments (SPP), a zero-knowledge proof-based privacy solution built by NetherMind that enables confidential transactions on Stellar while maintaining compliance through Association Set Providers.
Khan, Senior Developer Advocate at the Stellar Development Foundation, presents Stellar Private Payments (SPP), an open-source proof of concept by NetherMind that brings privacy-preserving transactions to Stellar using zero-knowledge proofs. SPP leverages Protocol X-Ray's native ZK verification in Soroban smart contracts to enable private transfers where sender identity, recipient, amount, and transaction history remain hidden. The system uses a compliance-first design with Association Set Providers (ASPs) that maintain approval and exclusion trees, allowing builders to create privacy solutions that are both confidential and regulatory-compliant. Khan discusses use cases including private payroll, confidential DEX trading, private remittances, institutional treasury management, and sealed-bid auctions, comparing SPP favorably to Tornado Cash, Railgun, Aztec, and Zcash by emphasizing its compliance-by-design approach and integration with Stellar's fast, inexpensive payment rails.