Hyli, stablecoin infrastructure for verifiable compliance
The ledger doesn't need to see everything to be trustworthy. Hyli makes privacy the default and proof the shared foundation.
The European Union’s stablecoin market is maturing fast.
Issuers, the EU regulated entities that mint and redeem stablecoins, are moving from onchain experimentation to production payment flows, treasury operations, and regulated distribution. It is no longer enough to settle correctly: the infrastructure also needs to protect sensitive financial activity and enable compliance and audits.
Hyli is built for that reality: a proof-driven settlement layer with privacy by default, and traceability through selective disclosure.
What stablecoin issuers need from a privacy layer
Most systems force an uncomfortable trade-off. Public chains make activity legible to everyone, forever. Typical private setups hide activity, but often make independent verification, interoperability, and audit trails harder.
This is particularly constraining in the European Union. Privacy expectations are high, regulatory scrutiny is explicit, and European sovereignty matters. A workable infrastructure choice needs to satisfy all three.
When issuers say they need privacy, they don’t mean anonymity. They mean controlling who can see what, and when. Issuers also need a strong way to prove rules were followed. Banks won’t work with infrastructure partners if they cannot answer the regulators questions to confirm they are compliant.
Confidentiality for sensitive financial flows
Amounts, counterparties, and activity patterns must not become public signals.
Once flows are visible, observers can infer commercial relationships, inventory, and operating cadence. For issuers serving corporates, payment institutions, and regulated entities, that leakage is unacceptable.
Programmatic settlement
Issuers need a practical way to handle multi-step conditions and atomic DvP. Atomic settlement matters when multiple requirements must hold at once, such as payment plus compliance checks.
They also allow institutions to apply rules consistently and automatically, closing the window for human error.
Verifiable compliance
Know Your Customer (KYC) and Know Your Business (KYB) checks, eligibility constraints, transfer rules, and limits need to be enforceable and provable. Issuers need to demonstrate that rules were applied consistently, without publishing everyone’s data.
A good privacy layer enables both this and the confidentiality mentioned above.
Auditability without permanent onchain data exposure
Traceability should come from selective disclosure, not from making every transaction globally readable by default.
Auditors and regulators often need a scoped view. The public does not. A good privacy layer will offer this scoped view on-demand, enabling comprehensive checks without sharing more than is necessary.
Hyli, your privacy layer for stablecoin issuance in Europe
Hyli is a privacy layer for tokenized assets and digital money, built for regulated use cases.
Hyli does not execute business logic onchain: computation happens off-chain and the chain verifies cryptographic proofs of transaction validity. That separation is the heart of our model, keeping sensitive execution private while preserving shared verification and clean settlement.
Separating intent from proof
Hyli uses a two-step transaction lifecycle that separates intent from proof. With this model, issuers can run execution privately, keep sensitive business data offchain, and still settle on a shared, verifiable rail.
On Hyli, transfer rules, eligibility, and limits are enforced through validity proofs. You can demonstrate that compliance rules were applied without publishing everyone’s transaction history. Validity proofs close the window for human error. They rely on mathematical guarantees and atomic execution, performing personal and transaction-level checks in every operation.
Selective disclosure: privacy and audit can coexist
Selective disclosure keeps sensitive details confidential by default, while still supporting rigorous audits.
When an issuer, auditor, or regulator needs to verify a specific flow, they can request the minimum information required for that check, without turning the ledger into a public dataset.
Read more about selective disclosure:
Alex Sirac
Why choose Hyli for your stablecoin
- Confidentiality for sensitive flows: sensitive business data stays private by default, while settlement remains verifiable.
- Programmatic settlement: bundle conditions, including compliance checks, into one provable settlement step.
- Verifiable compliance: eligibility, transfer rules, and limits are encoded into validity proofs.
- Auditability: scoped visibility on demand for auditors and regulators, without public exposure.
What Hyli means for stablecoins in Europe
A privacy layer that preserves verification does not just add privacy: it changes what stablecoins can realistically be used for in regulated markets.
Hyli enables stablecoins that can support:
- Institutional payments and treasury flows without public leakage.
- B2B settlement where confidentiality is a requirement, not an optional feature.
- Cross-border settlement without exposing commercial relationships.
The same rail can support tokenized assets and DvP-style flows thanks to its built-in atomicity.
The question is not public or private. It is what your infrastructure reveals by default, and how you prove rules were followed.
Hyli makes privacy the default and proof the shared foundation.
Building stablecoin infrastructure for Europe? Let's explore how Hyli's privacy layer fits your compliance and confidentiality requirements.