Platforms ether.fi and Hinkal have announced a partnership aimed at improving user privacy when spending crypto assets using credit cards linked to the Ethereum network.
ether.fi, a decentralized finance (DeFi) protocol, allows users to stake, borrow, and provide liquidity. Furthermore, it is Ether.fi Cash, self-custodial Visa card (virtual and physical).
Hinkal is a privacy protocol in chains It uses smart contracts and cryptographic proofs such as zero-knowledge (ZK) to enable confidential transactions on public networks.
In addition, hinkal hot wallet self-custody rights Hide details such as amount and source without revealing the user’s identity.
The two companies announced the integration on December 12th through X’s official accounts.
Ether.fi offers cards but no privacy in chains
To use the ether.fi card, users must deposit funds. “Member Safe” (Member Repository).
those vault These are smart contracts that store funds intended to support card payments. These can operate on second layer (L2) networks such as Ethereum or Scroll.
The “problem” is that Ethereum is a public network. Therefore, anyone can observe the transfer of money from one personal wallet to another in a browser. vault That will secure the card.
That link will make the call public financial graph (financial graph), i.e. Relationship between balance sheet, funding sources, and past movements.
The integration with Hinkal aims to resolve that point. hinkal is shield wallet (Armor Wallet) uses ZK to hide amounts and relationships between transactions.
How does Hinkal bring privacy to the use of ether.fi Ethereum cards?
In this integration, users first deposit funds into the section. “Shield Pool” A private fund called Hinkal. That initial deposit is visible, but The road ends there.
Then the user runs “”.I’ll remove the shield.” Send only the amount you need (by removing the shield) to an intermediate public address, and then send the funds from there. vault From ether.fi. The result is No link in chains directly between wallet User main and card.
Therefore, in Ethereum No direct link registered between the user’s main wallet (where funds can be held for staking or DeFi strategies) and the account associated with the card.
By intervening a privacy layer, the integration is Reduce analyst risk. in chains or a third party Rebuild users’ digital paths to wealth, strategy, and economic behavior.
Increased privacy does not equal anonymity
Currently, this protection works within the scope of your network. However, on the other hand, ether.fi requires KYC (Know Your Customer) to issue cards using the platforma requirement derived from AML (anti-money laundering) regulations and Visa policies.
This means that the user’s identity is somehow linked to their account. off chainThat is, outside of the public Ethereum registry.
In that sense, collaboration does not provide anonymity; Better privacy management in chains. This model allows for daily movements in such a way that the size and origin of a user’s capital is not revealed. To an outside observer.