What is Sui’s new private stablecoin transaction feature?

Sui said it will make stablecoin transactions private by default through a new protocol upgrade. The feature is designed to prevent users’ payment histories from being fully visible on the public blockchain.

Why is Sui adding privacy to stablecoin transactions?

Mysten Labs said institutions and users often avoid fully transparent blockchain systems because transaction histories can expose sensitive financial activity. The company believes privacy tools are necessary for wider enterprise and institutional blockchain adoption.

How will private transactions work on Sui?

According to Mysten Labs, only the sender, receiver, and approved entities such as regulators or issuers would be able to view transaction details. The system aims to balance privacy with regulatory compliance.

Why do institutions care about blockchain privacy?

Institutions handling bonds, stocks, payments, or tokenised assets may not want all transactions publicly visible. Privacy controls can help companies protect sensitive financial data while still operating on blockchain infrastructure.

What did Mysten Labs say about tokenised assets on Sui?

Mysten Labs co-founder Adeniyi Abiodun said the privacy model could eventually expand beyond stablecoins into tokenised stocks, bonds, and other crypto assets. The company believes issuer-controlled visibility is important for real-world asset adoption.

What are gasless stablecoin transactions on Sui?

Sui recently introduced gasless stablecoin transfers that allow users to send stablecoins without paying transaction fees in SUI tokens. The feature is intended to reduce friction for blockchain-based payments and improve user accessibility.

Why is privacy becoming a bigger trend in crypto?

As blockchain adoption grows, more companies and institutions want systems that protect sensitive financial information while remaining compliant with regulations. Public-by-default blockchain transparency can create security, privacy, and competitive concerns for larger organisations.

How is Sui different from traditional privacy coins?

Sui’s approach reportedly allows regulators and approved issuers to access transaction visibility when necessary. Traditional privacy-focused crypto systems often aim for complete anonymity, which can create regulatory concerns.

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Sui rolls out private stablecoin transaction upgrade

Written by Liezl GambePublished May 25, 2026, 7:23 AM

Sui said it will introduce private stablecoin transactions by default in a major protocol upgrade designed to improve institutional adoption and payment privacy.

Mysten Labs co-founder Adeniyi Abiodun said the feature would allow users to transact without exposing their payment history publicly across the blockchain network.

“Companies that want to issue bonds, stocks, or RWAs on chain need issuer-controlled visibility,”

Abiodun stated.

The privacy system would reportedly limit transaction visibility to senders, receivers, and approved parties such as issuers or regulators instead of exposing wallet activity across the entire network.

Mysten Labs said the functionality is already being tested and could later expand beyond stablecoins into tokenised stocks, bonds, and broader crypto asset transactions.

The rollout reflects growing institutional demand for blockchain privacy tools that preserve compliance visibility while reducing the transparency risks traditionally associated with public blockchain networks.

Last week, Sui also introduced gasless stablecoin transfers that remove SUI token fees for users, with the company positioning the feature as another step toward reducing friction in blockchain-based payments and stablecoin adoption.

At the time of reporting, Sui price was $1.04.