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Solana plans to establish confidential smart contracts by 2026
Solana plans to establish confidential smart contracts by 2026
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Crypto Prune > News > Solana plans to establish confidential smart contracts by 2026
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Solana plans to establish confidential smart contracts by 2026

5 hours ago 3 Min Read

New standards are being developed in the Solana network ecosystem to expand privacy capabilities.

it is, Confidential SPL Token Standard (C-SPL) technology. Promises confidential transactions and balances without abandoning public infrastructure.

El C-SPL It does not replace the basic token format, the SPL token standard Solanabut extend it. While SPL defines how tokens are created and transferred for everyone to see, C-SPL adds a layer that allows sensitive information to be hidden in those shipments.

Yannick Schrade, co-founder and CEO of Arcium, the company that developed the standard, said this on Dec. 13 during the Breakpoint 2025 event in Abu Dhabi, United Arab Emirates. C-SPL is expected to launch in the first quarter of 2026. Currently in testing phase.

What is C-SPL and what is its purpose?

During his presentation, Schrade said:

For each token that exists in Solana, you can encrypt the balance and amount transferred and hide all that information. This enables a “smart token account”, a smart contract where confidential balances and transfers take place.

Yannick Schrade, co-founder and CEO of Arcium.

C-SPL allows tokens to function in the same way as they currently do on Solana. However, without being seen by a third party The number of funds in your account or the amount transferred with each transaction.

This information is encrypted and converted into data that cannot be read by anyone without your permission.

According to Arcium, C-SPL integrates several components of the Solana ecosystem.

  • Token-2022 (a more flexible version of SPL).
  • Extension of confidential transfer (an extension that allows private transfers).
  • Arcium Cryptographic Computing.
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Using these technologies, one of the main changes is that smart contracts are executed directly in Solana. That would be the management of confidential balances.

So far, private transfers are only available in user-managed accounts, preventing their use in decentralized finance (DeFi). According to Arcium, C-SPL could potentially be used to operate lending, exchange, or payment protocols without revealing financial data.

On the other hand, this standard also aims to improve the user experience. Previous models required recipients to create a confidential account before receiving tokens. C-SPL eliminates that friction by allowing you to: Create those accounts automaticallyas occurs in general transfers.

Finally, another important aspect is the possibility to use existing SPL tokens in confidential mode without the need to issue new assets.

This would facilitate cases such as private payments, stablecoins, and RWA (tokenized real-world assets) where balance sheet disclosure is often an issue.

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