Aptos has launched its “Confidential APT” privacy token on the mainnet, a new asset pegged 1:1 with the native APT token that uses zero-knowledge proofs to conceal transaction details. The move follows a nearly unanimous on-chain governance vote to approve the new privacy-enhancing feature for the Layer 1 blockchain.
“If a company runs payroll on-chain with visible amounts, every employee's salary is permanently public — to coworkers, competitors, recruiters, everyone,” Sherry Xiao, a founding engineer at Aptos Labs, said in an interview. “Same with treasury moves, settlement flows, trading strategies.”
The new token employs ZK-proofs to encrypt token balances and transfer amounts, while the wallet addresses of the sender and receiver remain visible on the public ledger. This approach distinguishes it from privacy coins like Monero (XMR) which obscure all transaction details. The goal is to solve what Xiao calls an “operational dealbreaker” for many businesses considering on-chain activities.
By concealing financially sensitive information, Confidential APT aims to mitigate risks for individuals such as portfolio sniping and targeted scams, while enabling enterprise use cases like confidential payroll and private treasury management. The system includes a built-in compliance mechanism; an "auditor key" can be used to access transaction data for investigations, but only after a successful on-chain governance vote authorizes it.
The need for financial privacy has been a significant barrier to the enterprise adoption of blockchain technology. Publicly visible salary payments or treasury movements can expose sensitive corporate data to competitors and malicious actors. Confidential APT directly addresses this by allowing organizations to shield specific financial figures, a crucial feature for on-chain capital management.
While individual users are expected to be the initial adopters, Xiao noted that a proven track record is key for enterprise uptake. “If Confidential APT runs on mainnet for six months with solid volume and no issues, that's the proof point that shortens the enterprise sales cycle,” she added. The built-in audit function is designed to ensure the token can meet regulatory standards, providing a pathway for compliance without sacrificing user privacy by default.
This article is for informational purposes only and does not constitute investment advice.
