The Privacy Pools project, focused on on-chain privacy, has added support for stablecoins USDT, USDC, and DAI. This will enable the use of these assets for private payments.
? Stablecoin privacy is almost here ?
Privacy Pools is adding support for $USDT, $USDC, and $DAI — bringing stablecoin privacy to Ethereum.
More assets. More privacy. pic.twitter.com/l9v4rFWoRf
— privacypools (@0xprivacypools) June 25, 2025
The 0xbow project, launched by Amin Soleimani and Zach Cole, introduced Privacy Pools in March. The protocol is based on the Association Set Provider concept proposed by Ethereum co-founder Vitalik Buterin in 2023. It allows for the separation of funds of suspicious origin while maintaining on-chain privacy.
To use Privacy Pools, users connect the 0xbow wallet and deposit ERC-20 standard tokens. With zero-knowledge proofs, they can withdraw anonymized assets to new addresses.
0xbow has secured funding from Bankless, Number Group, Public Works, and several business angels, including Buterin.
In 2023, the Ethereum co-founder described privacy as the “biggest remaining problem” of the network and proposed a solution.
In 2024, Buterin listed use cases for cryptocurrencies in everyday life. Specifically, he suggested applying ZKP mechanisms for verifying “identity, credentials, or reputation.”