Sui makes stablecoin transfers private by default

Mysten Labs announced that Sui will make all stablecoin transfers private by default. Under the change, only the sender and the recipient can see transferred amounts; token issuers and regulators can be granted visibility when required. The feature is in testing on the Sui network.

Adeniyi Abiodun, co-founder of Mysten Labs, explained the change addresses a common concern among firms that public blockchains expose transaction histories and deter on-chain issuance of regulated assets.

“Companies that want to issue bonds, stocks, or RWAs on chain need issuer-controlled visibility. They need to decide that only sender, receiver, and maybe a regulator can see the details. When privacy goes live, Sui will give them that at the protocol level,” Abiodun stated.

Mysten Labs is focusing initial tests on stablecoins because they are widely used for payments and settlement, where public histories can reveal commercial behavior and customer flows. The company plans to extend private transfers to tokenized stocks, bonds and other crypto assets in later phases.

Last week Sui also removed gas fees for stablecoin transfers, enabling zero-fee transactions. Mysten Labs described the combination of private-by-default transfers and gasless stablecoin transactions as addressing common frictions for on-chain payments and corporate issuers.

Mysten Labs has not given a firm date for mainnet deployment. The company plans a staged rollout that will let developers and institutional partners evaluate issuer-controlled visibility and how it interacts with compliance requirements and existing token standards.