A growing push to bring privacy to public blockchains has reached Bitcoin, with VerifiedX unveiling a new layer designed to protect transactions while maintaining auditability.
The system, called Prism, allows for encrypted balances, protected addresses and selective disclosure, allowing users to transact privately while proving compliance when necessary, according to an email announcement shared with CoinDesk on Thursday.
The timeline reflects a broader shift across the industry. The XRP Ledger this week introduced zero-knowledge proof (ZKP) features aimed directly at institutional users looking to transact without exposing sensitive data on public ledgers.
This effort highlights what many see as a major barrier to institutional adoption: transparency. While public blockchains provide trust through openness, they also expose balances, counterparties and transaction flows – something institutions generally avoid in traditional finance (TradFi).
Such a development carries additional weight when applied to Bitcoin. As the largest digital asset – sometimes worth more than the rest of the crypto market combined – Bitcoin remains the primary gateway for institutional capital. This means that improvements to its features, including privacy and usability, have the potential to influence the entire industry more profoundly than similar upgrades on smaller networks.
VerifiedX applies this model directly to Bitcoin-related activities rather than creating a separate privacy chain. Assets can move from a transparent to a protected state, while “viewing keys” allow selective access to auditors or regulators.
Beyond payments, the system supports programmable use cases such as private lending, trading and automated transactions, including agent-driven finance, all without revealing on-chain positions or intentions.
