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, enables encrypted balances, shielded addresses and selective disclosure, allowing users to transact privately while still proving compliance when required, according to an email statement shared with CoinDesk on Thursday.
The timing reflects a broader shift across the industry. XRP Ledger this week introduced Zero-knowledge proof (ZKP) features aimed directly at institutional users seeking to transact without revealing sensitive data on public finances.
That effort highlights what many see as a core barrier to institutional adoption: transparency. While public blockchains provide trust through transparency, they also reveal balances, counterparties and transaction flows – something institutions typically avoid in traditional finance (TradFi).
Any such development carries extra weight when applied to Bitcoin. As the largest digital asset – at times worth more than the rest of the crypto market combined – Bitcoin remains the primary gateway for institutional capital. This means that improvements to its functionality, particularly around privacy and ease of use, have the potential to impact the entire sector more deeply than similar upgrades on smaller networks.
VerifiedX applies this model directly to Bitcoin-linked activity instead of building a separate privacy chain. Assets can move between transparent and shielded states, while “view keys” enable selective access for auditors or regulators.
In addition to payments, the system supports programmable use cases such as private lending, trading and automated transactions, including agent-driven financing, all without revealing on-chain positions or intent.
