Zero-knowledge proof technology enables institutions to transact regulated assets privately on public blockchain infrastructure without sacrificing compliance or auditability

TORONTO, May 27, 2026 /PRNewswire/ - Polymath, the regulated asset infrastructure company behind Polymesh, today announced the launch of Confidential Assets, a native, protocol-layer privacy feature that allows financial institutions to transact tokenized securities and real-world assets on a public blockchain while keeping positions, balances, and counterparty details fully private. The launch marks a significant step in resolving one of the most persistent barriers to institutional adoption of tokenized finance.

Until now, institutions seeking to participate in tokenized markets have faced an uncomfortable choice: accept the full transparency of public blockchain infrastructure exposing sensitive trading positions, client data, and transaction flows to competitors and the market, or retreat to private, permissioned chains that solve confidentiality but create isolated silos with limited interoperability. Confidential Assets on Polymesh eliminates that trade-off.

Built directly into the Polymesh protocol rather than layered on as a third-party integration or Layer 2 solution, Confidential Assets uses zero-knowledge cryptography to shield transaction details from public view while preserving regulators', auditors', and authorized parties' ability to access the information they require. In practice, an institution can prove it holds a compliant, regulated asset and execute a transfer without revealing the size of its position or the identity of its counterparty to the broader market. According to Polymath's CEO, Martin Halford:

"The question the market has been asking is not whether assets can be tokenized — they can. The question is whether tokenization can be done at an institutional scale, with the privacy and compliance standards that real financial infrastructure demands. Confidential Assets is our answer to that question."

Polymesh is a public-permissioned blockchain built from the ground up for regulated financial assets. Unlike general-purpose chains where compliance is retrofitted through smart contracts, Polymesh treats identity verification, corporate governance, and settlement finality as native protocol functions.

The announcement comes as tokenization of real-world assets accelerates across private equity, private credit, real estate, and fund structures. Industry estimates suggest the addressable market for tokenized financial assets could reach into the trillions of dollars over the coming decade. Polymath, which has been building regulated asset infrastructure since 2017 and contributed the original ERC-1400 security token standard to the industry, is positioning Confidential Assets as a foundational layer for that market. According to Halford:

"The winners in tokenization will be the platforms that make regulated assets usable, private, compliant, and liquid. Protocol-layer privacy is the missing piece."

Polymath also confirmed that a post-quantum cryptography-ready version of Confidential Assets is in development, designed to future-proof institutional infrastructure against next-generation cryptographic threats, an increasingly important consideration for assets that may remain on-chain for decades.

Polymesh achieved SOC 2 Type 1 compliance in 2025, and the Confidential Assets feature is available immediately to institutions building on the Polymesh network.

About Polymath

Polymath is a regulated asset infrastructure company founded in 2017. Its Polymesh blockchain is purpose-built for securities and real-world assets, with identity, compliance, governance, settlement, and confidentiality built into the protocol layer. Polymath contributed the ERC-1400 security token standard and has supported issuers, investors, and institutions across private equity, credit, real estate, funds, and other asset classes. For more information, visit www.polymath.network.

Note to editors: Quotes are available for attribution to Martin Halford, CEO. Additional background, case studies, and technical briefings available on request. Polymath spokespeople are available for interview.

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SOURCE Polymath Research Inc.