Sui has started public beta testing of confidential transfers on Devnet, adding a privacy layer that encrypts token balances and transfer amounts onchain while leaving sender addresses, recipient addresses, token types, and timestamps visible. The feature was announced on June 8, with a Testnet release scheduled for later this year. The design takes a different path from classic privacy coins by keeping room for oversight.
Balances and amounts are hidden, but transaction metadata stays visible
Under the new model, token issuers can enable a confidential mode that removes balances and transfer values from public view. Sui uses Twisted ElGamal cryptography on Ristretto255 together with zero-knowledge proofs so the network can verify a transfer without revealing the underlying numbers. Mysten Labs said this allows the chain to validate transactions while preventing overdrafts and unauthorized token creation.
The code has been released as open source on GitHub. Mysten Labs also said the implementation has not yet been audited and should still be treated as a work in progress. According to the company, users can prove ownership of balances or verify transaction amounts without exposing private keys.
Audit keys and issuer controls separate Sui from privacy coins
Sui’s framework differs sharply from networks such as Monero. Instead of concealing every part of a transaction, it keeps some fields public and allows authorized parties to receive auditor keys that can decrypt balances when needed. Issuers also retain the ability to freeze or seize assets under specific conditions. That makes the feature closer to a compliance-oriented privacy tool than a fully opaque payment system.
The contrast is clear in the report’s comparison with Monero, which hides senders, recipients, and amounts through ring signatures, stealth addresses, and Ring Confidential Transactions. Because outside parties cannot inspect that data, Monero has repeatedly faced exchange delistings tied to compliance concerns. Sui is testing a model that keeps encrypted transfers compatible with audit access.
Bridge, TRM Labs, and Merkle Science are evaluating the setup
The system is already being reviewed by firms that need transaction privacy without giving up regulatory obligations. Bridge is evaluating the technology for stablecoin and payments use cases. TRM Labs and Merkle Science are examining how transaction monitoring, investigations, and risk assessment tools work inside the encrypted framework.
That focus reflects a practical issue for payment companies, treasury teams, and stablecoin issuers. Fully public transaction sizes and wallet balances can reveal commercial relationships, hedging activity, or operating strategy. Sui’s confidential transfers are built to reduce that exposure while preserving auditability.
The launch comes at a sensitive time for the network. The report notes that Sui suffered three mainnet outages in late May, raising fresh questions about reliability as it seeks broader institutional adoption.
SUI gained nearly 5%, though higher-timeframe resistance remains in place
Markets responded positively to the privacy rollout. On June 9, SUI rose nearly 5% after the announcement and was trading around $0.76 at the time of writing.
Even so, the broader chart setup remains mixed. On the daily timeframe, SUI is still trading below its 20-day moving average at $0.91 and 50-day moving average at $0.98, showing that sellers still control the larger trend after the token fell from its May peak near $1.40. The report adds that MACD remains below the zero line, although downside momentum has started to ease.
On the 4-hour chart, SUI has rebounded from the $0.68 to $0.70 support area and is trying to break above the top of a descending channel that has guided the price lower for almost a month. A bullish MACD crossover has also appeared on that timeframe. The first major test sits near $0.80, where channel resistance and the Supertrend indicator converge. If price clears that area, traders may look toward the $0.91 20-day moving average and then the $1.00 psychological level. If resistance holds, support near $0.70 and the recent swing low around $0.68 remain the next levels in focus.