Hinkal Protocol has launched its Shared Privacy Protocol. The new system enables confidential transactions across multiple blockchains.
The announcement came at EthCC 7. Hinkal outlined several key features of the protocol.
Stakers can deploy native and staked assets. This generates additional yield. Yield tokens remain tradable on other decentralized applications.
Traders benefit from an expanded Shielded pool. This obscures trading strategies. It also maximizes capital deployment across chains.
Decentralized exchanges and applications can integrate the protocol. This grants users new privacy capabilities.
Georgi Koreli, Hinkal's co-founder and CEO, stressed the importance of on-chain privacy. "It's critical for full crypto adoption in the institutional financial sector," he said.
Koreli noted rapid adoption among institutional clients. He called the launch "a key milestone in unleashing community power and breaking privacy barriers."
Hinkal claims institutional investors seek DeFi privacy comparable to traditional markets. However, achieving this requires substantial "Shielded TVL" on each blockchain, which is not an easy task.
First of all, the crypto landscape's fragmentation poses challenges that need to be ovecome. Over 200 Layer-1 and Layer-2 blockchains exist. That translates into liquidity lacking incentives and privacy in DeFi is not scalable until now.
Evgeny Gokhberg, founder of Re7 Capital and Hinkal investor, commented on the protocol. "It's the solution we've been searching for," he said. Gokhberg emphasized the need for compliant, discrete liquidations without disclosing transaction data.