Unveiling the Confidential ERC-20 Framework: Compliant Privacy using FHE

Inco Network and Circle Research announced 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 keeping compliance controls. The framework uses Fully Homomorphic Encryption (FHE) within the EVM, and offers delegated viewing for auditors, regulators, and law enforcement along with programmable transfer rules such as anti-money laundering limits. The article presents it as a way for legitimate users to keep payroll, supply chain payments, and peer-to-peer payments private while managing misuse risk. Circle states that publishing the research does not imply it is productizing or endorsing the framework.