According to Foresight News, Polygon announced this week that Polygon CDK completed a privacy upgrade, introducing a new Validium configuration based on Succinct’s SP1 Hypercube zero-knowledge proof system. The upgrade enables institutions to retain raw transaction data on their own infrastructure while submitting only encrypted commitments and zero-knowledge proofs to Ethereum, achieving “private data, public verification.” The system maintains liquidity interoperability with Ethereum and other chains through AggLayer.
The upgrade provides five composable privacy levels covering permission-based access, confidential chains (Validium), trusted execution environments (TEE), fully homomorphic encryption tokens (FHE), and client-side zero-knowledge private transactions. It supports integration with enterprise identity systems including Okta and Azure AD, targeting traditional financial institutions such as banks, payment companies, and asset managers planning to move on-chain.