Privacy Pools adds stablecoin support for private Ethereum transfers

Privacy Pools, the onchain privacy solution backed by Ethereum co-founder Vitalik Buterin, is adding support for stablecoins, thereby providing a pathway for using assets like USDT and USDC like cash, according to an announcement on Wednesday.

The protocol plans to add support for Tether’s USDT, Circle’s USDC, and Sky’s algorithmic DAI stablecoin.

Privacy Pools was created by crypto veterans Ameen Soleimani and Zak Cole as a way to enable onchain privacy while remaining compliant. It uses a mixnet design first proposed by Buterin in 2023 called an "Association Set Provider" to filter out illicit or unwanted funds.

Users connect to the protocol using a compatible 0xbow Wallet to deposit ERC-20 tokens. The protocol uses zero-knowledge proofs to enable users to withdraw freshly anonymized assets into new shielded addresses.

0xbow, the startup building the tech, raised funds from Bankless, Number Group, Public Works, and several angels, including Buterin.