Clients of digital asset infrastructure company Taurus, including Deutsche Bank and State Street, have launched the first private stable contract to hesitate to use Stablecoins to address privacy issues.
Built on Aztec NetworkThis is a privacy-focused Ethereum Layer 2 powered by the A16Z, the contract combines zero-knowledge privacy with compliance features modeled on USDC, including mint/burn control, emergency pauses, blacklists and audit records.
This move coincides with the rapid growth of steady adoption of daily transactions outside of cryptocurrencies. As the U.S. Senate passes the Genius Act to create a regulatory framework for asset classes, Taurus said it expects global Stablecoin supply to accelerate and reach $1-2 trillion by 2030.
Taurus said that with this private stable contract, financial institutions regarding privacy will be able to issue stable financial institutions in payments or Treasury applications, while balances and transfers remain encrypted.
For example, a company can use this private stable person for a cross-border payroll without revealing the employee’s name or amount to a competitor or random onlookers. At the same time, if the regulator needs access, the system’s design can be accessed.
“This addresses our concern that we have repeatedly heard about the issuance of Stablecoins, central banks and regulators being considered,” Taurus Chief Security Officer JP Aumasson said. “We show that the privacy and security of Stablecoin users can be protected while retaining the capabilities of industry-standard Stablecoins.”
