Chainlink Launches Privacy Suite, Including CCIP Private Transactions, Blockchain Privacy Manager, and DECO Sandbox

According to official news, the Chainlink platform announced the launch of two new privacy protection features and updates to existing features, enabling financial institutions to maintain data confidentiality, data integrity and support regulatory compliance when trading across multi-chain economies. Among them, the Blockchain Privacy Manager allows institutions to integrate their private blockchain networks with existing systems (such as traditional enterprise backends) while limiting on-chain data exposure. This feature enables private chains to integrate with public chain platforms, providing access to key off-chain data such as proof of reserve (PoR), net asset value (NAV), market prices and identity data without exposing sensitive private chain data to third parties. Institutions can also use the public CCIP network to connect private blockchains to other public or private chains, while only displaying the on-chain information required for the institution to process each transaction. Using the Blockchain Privacy Manager, CCIP Private Transactions utilize a novel on-chain encryption/decryption protocol that enables institutions to use the public CCIP network to conduct transactions across multiple private blockchains while keeping transaction details completely confidential. End-to-end encryption prevents Chainlink node operators or other third parties from accessing sensitive content of institutional cross-chain transactions, including token amounts, sender/receiver addresses, and data instructions. Cryptographic keys are generated and held by institutional users and can be selectively shared with authorized parties of their choice, such as counterparties, compliance auditors, or financial regulators. Chainlink’s new privacy-preserving features are already being used by major financial institutions for cross-chain settlement of tokenized assets and complement the Chainlink platform’s existing privacy-preserving features, including DECO - a ZK-oracle technology for verifying network data in a privacy-preserving manner. In the near future, the team plans to make the DECO sandbox publicly accessible, providing pre-configured use cases that showcase DECO’s privacy-preserving features.