Aztec Labs has officially relaunched its privacy wallet zk.money on the Aztec Network, an Ethereum layer 2 solution focused on privacy. The self-custodial wallet, discontinued three years ago, now returns with new privacy features and transaction limits.
New wallet introduces private stablecoin payments
The upgraded zk.money wallet enables users to send and receive stablecoins without disclosing transaction details such as wallet balances, amounts transferred, or recipient information to the public. Instead of traditional wallet addresses, users can claim and use readable tags like bob.zk.money to facilitate private payments.
Joe Andrews, CEO of Aztec Labs, said in a statement that financial privacy should not compromise user transparency. He emphasized,
Onchain transactions between two individuals shouldn’t mean publishing your financial history to the world.
Users link their readable tags to deposit addresses using the Ethereum Name Service (ENS), allowing for simpler and more convenient transfers.
Aztec Network, operating as a separate layer atop Ethereum, validates transactions while prioritizing privacy. Transactions made within the zk.money wallet remain concealed from public view, keeping balances and activity private.
Mini dictionary: Zero-knowledge proofs are cryptographic methods that let one party confirm to another that a statement is true without sharing the underlying information. This technique underpins privacy features on many blockchain protocols by validating transactions without revealing any details.
Privacy boundaries and wallet structure
Transactions within zk.money rely on the user’s device to generate zero-knowledge proofs, which act as cryptographic receipts for verification without exposing sensitive data. Users can fund their wallets with USDC, USDT, or DAI tokens from exchanges or Ethereum-based wallets, but deposits entering Aztec from Ethereum are still visible onchain.
Aztec Labs maintains that zk.money operates as a purely self-custodial tool, stating the company has no ability to freeze or spend users’ funds. No administrator or third party holds special privileges over the wallet operations.
Transaction limits and rollout caps
To manage growth during this early phase, Aztec Labs has imposed strict transaction limits. Each payment is capped at $2,500, and there is a shared daily deposit ceiling of $50,000 for all users.
| Limit | Amount |
|---|---|
| Per transaction | $2,500 |
| Daily deposit pool (all users) | $50,000 |
The transaction caps are designed to ensure a controlled rollout and protect the network’s integrity as usage increases.
Background and context
The original zk.money wallet, launched in 2021, attracted more than 75,000 wallets and processed over $100 million in transaction volume. The team paused the service to focus on building its own network infrastructure.
In the same year, Aztec Labs secured $17 million in a funding round led by Paradigm and further developed its privacy protocol toolkit, Aztec Connect, to link privacy features with DeFi applications.
Privacy is emerging as a top concern for Ethereum developers, especially as preparations for the Hegotá upgrade progress. One proposal aims to allow privacy pools to cover their own transaction fees, removing the need for intermediaries.
Vitalik Buterin, Ethereum co-founder, described Hegotá as likely the last “normal” fork for the network, mentioning future efforts will focus on integrating technologies like recursive STARKs, automated formal verification, and quantum resistance. He noted that zero-knowledge proofs have the potential to deliver robust privacy for special-purpose applications in line with his vision for a “cryptographic world computer.”
At the time of the announcement, Ethereum was trading around $2,669.77, down 2.33% in the previous 24 hours.
