Stellar Private Payments Introduces ZK Proofs on XLM Network Upgrade

Stellar Private Payments Launches With ZK Proofs and ASP Controls

Stellar Private Payments is now open source, and this is a meaningful step for the Stellar network. The update allows private deposits, transfers, and withdrawals using zero-knowledge proofs. At the same time, it includes built-in safeguards through something called Association Set Providers (ASPs). 

It means users can move money without revealing balances or transaction details. But unlike fully anonymous systems, this setup still allows certain controls to prevent misuse. That balance between privacy and responsibility makes update important.

How Stellar Private Payments Work? 

The system uses zero-knowledge proofs, specifically Groth16 proofs, to verify transactions without exposing sensitive data. It runs on Soroban smart contracts, which are platform’s smart contract framework.

Source: X (formerly Twitter) 

Here’s what users can do:

• Deposit tokens into a private pool

• Transfer funds without showing the amount

• Withdraw funds by proving ownership

To prevent illegal activity, ASPs manage approved and blocked public keys using special Merkle trees. This means the network can confirm whether someone belongs to an allowed group without revealing personal details. It adds protection without removing privacy.

There is also a working demo. Developers can deploy the contracts, run a frontend locally, and test the system. This shows that this concept is not just an idea, it's a working code.

Current Development Stage

It’s important to understand that this is still an early-stage release. Stellar Private Payments is a proof of concept and has not yet gone through a full security audit. Like most early blockchain tools, it will need testing, feedback, and improvements.

However, the fact that it is open source is a positive sign. Developers can now build on it, improve it, and possibly turn it into something bigger over time.

Stellar Price Today and Technical Outlook

XLM is trading around $0.166, up about 6–7% in the last 24 hours. The market cap is near $5.45 billion, and trading volume is around $121 million as per the CoinMarketCap.

Source; CoinMarketCap 

The Stellar price recently bounced from the $0.15 support level, which many traders saw as a strong demand zone. As long as XLM holds above the pivot level near $0.1619, it may try to move toward $0.1713. If it drops below $0.1594, it could revisit the $0.15 area.

This rebound looks mostly technical, helped by a broader crypto market recovery. Still, updates like private payments add a long-term narrative to the ecosystem.

XLM Price Prediction

If XLM stays above $0.1619, the short-term outlook remains slightly positive. A break above $0.1713 could strengthen the recovery. But if support fails, the market may slow down before making another move.

Conclusion

Private Payments brings privacy-focused transactions to the network while keeping safeguards in place. Even though it is still early and needs further development, the open-source release is a strong step forward.

The real impact will depend on adoption. If developers and projects start using it, this could become an important upgrade for Stellar’s future.