Privacy Pools Welcomes Sky's USDS Stablecoin

Privacy Pools, the onchain privacy solution initiated by Ethereum co-founder Vitalik Buterin, is now incorporating Sky’s USDS stablecoin. This move signifies the service's expansion into multi-asset Privacy Pools, as announced on Wednesday. The team stated on X, "This is just the beginning. Over the coming weeks, we’re rolling out support for more assets, ecosystems, and use cases, giving these assets the compliant privacy they deserve." Developed by the blockchain startup 0xbow, Privacy Pools utilize a zero-knowledge-powered mixnet system along with an 'Association Set Provider' to ensure that only 'clean' funds participate. This protocol aids everyday crypto users in achieving privacy while adhering to regulatory standards. The concept of the Association Set Provider was proposed by Buterin in a 2023 paper co-authored with Chainalysis researcher Jacob Illum and academics Matthias Nadler and Fabian Schar. Unlike traditional mixers like Tornado Cash, the association sets in Privacy Pools function as gatekeepers, blocking illicit funds from entering the mixing pool. Rune Christensen, creator of Sky, noted on X, "USDS Privacy Pools: hide which deposit is yours and prove your coins aren’t from bad actors, all in a ZK proof. Privacy ✅ USD Stability ✅ No bad actors ✅ Very proud of this and how it delivers on the original vision of Dai, tying it together with the modern Sky Ecosystem." Earlier in June, 0xbow announced plans to support major stablecoins including Tether’s USDT, Circle’s USDC, and Sky’s algorithmic DAI. The latest integration of Sky’s USDS aims to create a harmonious balance between decentralization and regulatory compliance. Co-founded by Ethereum veterans Ameen Soleimani, Nathaniel Fried, and Zak Cole, 0xbow has attracted funding from Bankless, Number Group, Public Works, and several angel investors, including Buterin. Disclaimer: The Block is an independent media outlet delivering news, research, and data. As of November 2023, Foresight Ventures is a majority investor in The Block and holds investments in various crypto companies. Crypto exchange Bitget serves as an anchor LP for Foresight Ventures. The Block operates independently to provide objective, impactful, and timely information about the crypto industry. Current financial disclosures are available.