Confidential ERC-20 framework for compliant onchain privacy

Inco Network and Circle Research have released a co-authored whitepaper introducing the Confidential ERC-20 Framework, which wraps standard ERC-20 tokens into confidential versions that mask balances and transfer amounts while maintaining compliance controls. The framework uses Fully Homomorphic Encryption within the EVM and offers delegated viewing for auditors, regulators, and law enforcement, along with programmable transfer rules such as anti-money laundering checks and transfer limits. The authors position it for uses such as supply chain payments, payroll, and peer-to-peer transactions. The publication states that it does not imply Circle is productizing or endorsing the framework.