Confidential Transfer

Confidential Transfer

Confidential Transfer is a Token-2022 extension. It encrypts token balances and transfer amounts using zero-knowledge proofs, so the values are not publicly visible on-chain. Account owners and recipients see the values via their own ElGamal key.

Auditor key

Token issuers can optionally configure an auditor key — typically the issuer themselves. With this key, an authorized party can read encrypted amounts without those amounts becoming public. Important for regulated stablecoins that need compliance visibility.

Risk without an auditor key

Mints with active Confidential Transfer but no auditor key are forensic blackboxes — the money flow is unreconstructable on-chain. Wallet-forensics tools such as Atlas or Solscan cannot follow such transfers.

Availability

Confidential Transfers require per-account ElGamal keypair setup. As of 2026, UX in wallets like Phantom, Solflare, and Backpack is still limited — the extension is used mainly in specialized custodian tools.

Deep dive

Pillar Token-2022 explained.