Protocol 25 and 26 introduced zero-knowledge primitives (BN254, Poseidon) that make private payment systems practical on Stellar. Arcane is building production infrastructure for compliance-ready privacy, enabling builders to protect sensitive financial flows on public rails while maintaining clear disclosure and reporting paths.
As Stellar's network carries more payroll, treasury operations, and institutional transfers, privacy becomes essential infrastructure. Recent protocol upgrades (Protocol 25/26) added native zero-knowledge primitives—BN254 pairings and Poseidon hash functions—making private payment systems feasible. Nethermind demonstrated technical viability, and Arcane is building production infrastructure. Arcane's compliance-ready privacy lets users shield assets into a private pool, transfer privately, and unshield for settlement, while operators maintain encrypted audit events and scoped disclosure for regulatory review.