Hinkal Pay Launches Private Crypto Payments with Compliance Controls

**Hinkal has launched integration with Openfort**, enabling products built on Openfort's wallet infrastructure to add privacy features through the Hinkal API. **How it works:** - Openfort handles user authentication, wallet creation, security, and signature generation - Hinkal processes signatures in a secure enclave to create private balances and zero-knowledge proofs - A relayer broadcasts operations so user addresses never appear as senders - Withdrawals cannot be traced back to their funding deposits **Private capabilities include:** - Withdrawals and transfers - Token swaps - Batch payments to multiple recipients **Privacy features selective disclosure** through viewing keys, allowing users to share transaction history with auditors, regulators, or counterparties while keeping it hidden from others. This integration follows Hinkal's recent security incident and contract redeployment across all supported chains.

Hinkal Wallet is phasing out legacy account types and requiring affected users to migrate. **Action Required:** - Update to the latest Hinkal Wallet version - Reopen the extension to check for migration notice - If no notice appears, no action needed **Migration Steps for Legacy Users:** 1. Copy and securely save all private keys 2. Remove Hinkal Wallet (don't uninstall until keys are saved) 3. Reinstall using official links 4. Create new wallet through onboarding 5. Import saved private keys to restore addresses **Security Reminder:** Never share private keys with anyone. Hinkal will never request them. This follows December's announcement about adding private key import/export support for public accounts.

Stablecoin adoption and regulatory frameworks are advancing together, both dependent on institutional capital flow. Institutions require two critical elements to move on-chain: - **Privacy** - Trading positions, treasury operations, and counterparty relationships must remain confidential and cannot exist on public ledgers - **Compliance** - Regulated institutions need sanctions screening, audit trails, and reporting capabilities These requirements are not mutually exclusive. Regulators demand selective disclosure to appropriate parties at the right time, achieved through viewing keys and Know Your Transaction (KYT) monitoring. **Compliant privacy** means confidentiality and compliance can coexist simultaneously. A panel discussion in Palo Alto on June 2 will explore this framework, featuring representatives from [Merkle Science](https://merkle.science), Crossmint, Centrifuge, Arca, Wave Digital, and Mento Labs.

**Hinkal has developed a privacy solution that addresses institutional needs while maintaining regulatory compliance.** The platform distinguishes itself through built-in verification hooks that allow institutions to execute private transactions without sacrificing audit trails. This approach solves a critical problem: institutions require privacy to protect trade strategies and prevent front-running, but compliance teams have historically rejected privacy tools that appear designed for illicit activity. **Key features include:** - ZK proofs for transaction privacy - Stealth addresses for user anonymity - UTXO pools on EVM chains - Multiple users operating through single addresses with zero information leakage The architecture was presented at Devcon Argentina by Hinkal's CTO, demonstrating enterprise-grade privacy that integrates seamlessly with existing DeFi protocols. The solution represents a shift from earlier privacy tools by prioritizing compliance alongside anonymity. Research credit: [@KeyringResearch](