⏱ 2 min read
In-wallet stablecoin transfers are private while Ethereum deposits remain public; early rollout limits include a $2,500 per-transaction cap and a shared $50,000 daily deposit ceiling.
Aztec Labs has relaunched zk.money, a self-custodial privacy wallet, on Aztec Network, its privacy-first Ethereum layer-2. The company said users can send and receive stablecoins without exposing balances, amounts or recipients onchain inside the wallet. “Onchain transactions between two individuals shouldn’t mean publishing your financial history to the world,” CEO Joe Andrews said.
Aztec’s posts on X describe a tag system—such as bob.zk.money—that resolves via the Ethereum Name Service (ENS) to a deposit address. The developer documentation says private functions run on the user’s device, which generates zero-knowledge proofs to validate transactions without revealing details.
Privacy is scoped. Aztec noted that deposits from Ethereum remain public, while payments made within zk.money are private. Users can send USDC, USDT or DAI from an exchange or an Ethereum wallet.
Rollout is gated. Aztec set a $2,500 cap per transaction and a $50,000 daily deposit ceiling shared across users during the early phase. That structure suggests a cautious ramp and will limit near-term throughput, even if it helps the team manage risk and performance as the anonymity set grows.
Control of funds stays with users. Because zk.money is self-custodial, Aztec says it cannot spend or freeze user funds and that no privileged administrator controls the wallet.
Aztec said the original zk.money, launched in 2021, drew more than 75,000 wallets and $100 million in volume before the team shelved it to build its own network. The company previously raised $17 million in a Paradigm-led round and expanded zk.money with Aztec Connect, a toolkit for bringing its privacy tech to DeFi protocols.
The relaunch lands as Ethereum developers discuss ways to make privacy features more usable. Developers are weighing proposals for next year’s Hegotá upgrade that could let privacy pools pay their own transaction fees without intermediaries. In a post this weekend, co-founder Vitalik Buterin said special-purpose apps could achieve “very strong privacy” with zero-knowledge proofs.
What to watch next
- Whether and how quickly Aztec raises or removes the $2,500 per-transaction cap and the $50,000 daily deposit ceiling.
- Adoption metrics: tags claimed, active wallets and total transfer volume on Aztec Network.
- Technical performance and user experience for on-device proving as activity scales.
- Progress on Ethereum governance around privacy-related fee mechanics in the Hegotá upgrade track.
This content is for informational purposes only and does not constitute financial advice.
🧠 HafidWatch Take
Wider adoption of zk.money depends not only on easing transaction caps but also on how regulatory scrutiny shapes stablecoin issuers’ policies around privacy. Even if Aztec removes current limits, issuers might still restrict private transfers due to compliance concerns, slowing growth. Additionally, the effectiveness of on-device proving and user experience at scale will be crucial; technical or usability issues could undermine confidence and restrict uptake regardless of policy changes. Monitoring these factors alongside adoption metrics will reveal whether zk.money can truly become a seamless privacy layer on Ethereum.
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