Catenaa, Tuesday, July 08, 2025-Privacy Pools, the onchain privacy protocol co-developed by Ethereum co-founder Vitalik Buterin, is introducing support for major stablecoins, broadening its functionality for private, compliant crypto transactions.
In a statement lastweek, the protocol announced that users will soon be able to deposit and withdraw stablecoins such as Tether’s USDT, Circle’s USDC, and MakerDAO’s DAI.
The move effectively allows stablecoins to function like digital cash on Ethereum, enhancing both user privacy and transaction utility.
Privacy Pools was created by developers Ameen Soleimani and Zak Cole to provide a privacy tool that filters illicit assets while enabling clean, traceable use.
The protocol incorporates a unique mechanism called the “Association Set Provider,” a mixnet-based model proposed by Buterin in 2023 to enable selective privacy by excluding tainted funds.
Users interact with the protocol using a 0xbow Wallet, which supports the deposit of ERC-20 tokens into a privacy layer powered by zero-knowledge proofs. These proofs allow assets to be withdrawn anonymously to new shielded addresses, preserving privacy without sacrificing regulatory compliance.
The wallet infrastructure and core technology behind Privacy Pools are being developed by 0xbow, a startup that has attracted funding from investors such as Bankless, Public Works, and Number Group. Individual backers include Buterin and several prominent angel investors.
With stablecoin integration, Privacy Pools is positioning itself as a key infrastructure piece for those seeking secure, transparent, yet private digital finance tools on Ethereum.
The update comes amid increasing global interest in privacy-preserving technologies that adhere to legal frameworks.
