The post Stellar (XLM) Adds Zero-Knowledge Proof Tools for Enterprise Privacy appeared on BitcoinEthereumNews.com.

Luisa Crawford
Jan 16, 2026 20:47

Stellar (XLM) introduces ZK proof capabilities enabling enterprises to conduct private transactions on public blockchain while maintaining compliance requirements.

Stellar (XLM) has rolled out zero-knowledge proof capabilities designed to give enterprises the transaction privacy they need without abandoning public blockchain transparency. The move targets a fundamental barrier keeping institutional players on the sidelines: the inability to hide sensitive financial data on an open ledger. The timing matters. Privacy-focused blockchain solutions are attracting serious capital right now—a competing zero-knowledge proof project just secured over $100 million in backing this month, according to recent reports. Stellar appears to be positioning itself to capture enterprise demand before that window closes. The Pseudonymity Problem Here’s the uncomfortable truth about blockchain “privacy”: it barely exists. What most networks offer is pseudonymity—a wallet address that acts as a thin mask. Anyone with a block explorer can trace transaction trails, and modern forensic tools can link those addresses back to real identities, spending patterns, and business relationships with uncomfortable accuracy. For retail users making small transfers, this exposure might be tolerable. For a corporation running payroll, paying suppliers, or managing treasury operations? It’s a dealbreaker. Competitors could monitor cash flows. Regulators might question data protection compliance. Employees could see each other’s salaries. How ZK Proofs Solve This Zero-knowledge proofs let one party prove a statement is true without revealing the underlying information. In practical terms, a business could verify it has sufficient funds for a transaction without exposing its actual balance. A payment could be validated without broadcasting the amount or counterparty to the entire network. The cryptographic trick works through a challenge-response system. The verifier asks the prover to perform actions that can only be completed correctly with knowledge of the hidden…

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Filed under: News - @ January 17, 2026 1:13 am