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Zcash News Update: Privacy Coins Transform the Future of Cryptocurrency Through Encrypted, Self-Directed Financial Systems

Zcash News Update: Privacy Coins Transform the Future of Cryptocurrency Through Encrypted, Self-Directed Financial Systems

Bitget-RWA2025/11/12 13:40
By:Bitget-RWA

- Zcash (ZEC) now leads privacy coins with 20–25% shielded ZEC and 30% shielded transactions, surpassing Monero in market cap. - Zcash's Zashi wallet normalizes privacy by default, while Project Tachyon targets 10,000+ private transactions/second for scalability. - Institutional support grows: Lighter raised $68M for fee-free derivatives, and Zama acquired Kakarot to advance FHE-based confidentiality. - Regulators tighten rules on privacy coins, with UK draft laws and Tornado Cash trials redefining anonymi

The renewed interest in privacy-centric cryptocurrencies is transforming the digital asset sector, with

(ZEC) at the forefront. By 2025, Zcash has transitioned from a specialized privacy solution to a comprehensive encrypted financial network, as highlighted in a . The use of shielded addresses has grown rapidly, with 20–25% of ZEC in circulation now stored in encrypted wallets and 30% of all transactions utilizing the shielded pool, according to . The Zashi wallet, developed in-house, has set shielded transactions as the standard, making privacy a default aspect rather than an optional feature, as noted by .

Zcash News Update: Privacy Coins Transform the Future of Cryptocurrency Through Encrypted, Self-Directed Financial Systems image 0
Eli Ben Sasson, who co-founded Zcash and leads StarkWare, commended the Kakarot team for advancing Ethereum’s cryptography, according to . At the same time, Zcash’s Project Tachyon, under Sean Bowe’s leadership, is working to boost transaction capacity to thousands of private transfers per second, reinforcing its position as a scalable encrypted platform, as reported. This progress has enabled Zcash to overtake Monero in market share, making it the top privacy coin by market capitalization, as reported.

The movement for enhanced privacy extends beyond Zcash. Vitalik Buterin, co-founder of

, stressed the importance of layered cryptographic methods to strengthen privacy and security. In a conversation on November 11, Buterin pointed out that zero-knowledge proofs (ZK) alone are insufficient for non-coercion resistance in scenarios such as voting, and that combining them with trusted execution environments (TEEs) or fully homomorphic encryption (FHE) is necessary for comprehensive privacy, as reported. He recommended hybrid systems, like ZK paired with FHE, to preserve privacy even if one layer is compromised, as reported.

Institutional support is accelerating these developments. Lighter, a decentralized derivatives exchange utilizing zk-rollup technology, secured $68 million in funding at a $1.5 billion valuation, with backing from Founders Fund, Haun Ventures, and Robinhood. The capital will be used to broaden institutional services, increase liquidity, and launch new monetization features, while keeping retail trading free of fees, as

reported. Over the past 30 days, Lighter’s perpetual trading volume hit $279.5 billion, with $1.15 billion locked in the platform, establishing it as a significant force in decentralized derivatives, as reported.

Zama, a company focused on FHE cryptography, has furthered privacy technology by acquiring KKRT Labs (Kakarot). This acquisition is intended to enhance confidentiality on public blockchains, with ambitions to process more than 10,000 confidential transactions per second. KKRT Labs, recognized for its expertise in ZK-rollups, brings advanced skills in modular rollup frameworks and proof-of-concept designs, as

reported. The merged organization will prioritize applications such as confidential stablecoin payments and DeFi, united by a commitment to open-source development and privacy-centric infrastructure, as reported.

Regulatory actions are also influencing the privacy coin sector. The UK government has proposed new regulations for exchanges and stablecoins, while the Bank of England has announced temporary limits on stablecoin holdings, as

reported. These regulatory shifts, along with the Tornado Cash legal proceedings and OFAC’s removal of the protocol from its list, are redefining the legal landscape for financial privacy, as reported.

Market trends highlight the increasing appetite for privacy. Since late September, Zcash has climbed over 700%, outperforming both

and Ethereum during a bearish macroeconomic period, as reported. Monero (XMR) and earlier privacy coins like (DCR) and (DASH) have also experienced gains, reflecting a broader move toward anonymity as a safeguard in an age of AI-powered surveillance, as reported.

As the crypto industry contends with ETF inflows and macroeconomic headwinds, privacy coins are reviving the cypherpunk vision of untraceable digital money. For investors, the negative correlation between privacy coins and traditional risk assets points to a rising preference for self-custody and financial autonomy—a trend that could reshape the future direction of the sector.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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