Stellar Development Foundation outlines a three-part strategy to bring privacy to Stellar while maintaining openness and compliance. The approach includes funding research, building zero-knowledge infrastructure, and developing open-source privacy solutions like confidential tokens.
Stellar Development Foundation has announced a comprehensive privacy strategy designed to balance public blockchain transparency with enterprise privacy needs. The strategy operates on three work streams: supporting academic research and ecosystem builders through the Stellar Community Fund and Academic Research Grant Program; investing in core privacy infrastructure including zero-knowledge proofs and integrating Risc Zero zkVM verifier into Soroban; and building open-source solutions like confidential tokens in collaboration with the Confidential Token Association. SDF emphasizes that privacy will be opt-in and configurable at the application layer while maintaining compliance-ready administrative tools. The next Stellar protocol release will focus on privacy with proposed additions for confidential token properties, ZK proof verification, and privacy-preserving applications.
