Mysten Labs reveals Tessera to bring private settlement to Sui

The prototype functions as a KYC-gated network where participants can settle invoices without broadcasting transaction values to the public. While the blockchain continues to record the sender, recipient, and timestamp of each transfer, the actual amount is hidden from outside observers. Companies retain visibility into their own transaction data, effectively shielding supplier pricing, trading volumes, and treasury movements from competitors.

At the core of this privacy layer is Seal MPC, Mysten’s system for managing encrypted data through threshold cryptography. This technology allows for granular, time-bound access, granting regulators, auditors, or dispute arbiters the ability to view specific transaction values without providing control over the underlying assets. These permissions are revocable and scoped, ensuring that oversight remains compliant with institutional requirements.

Tessera builds upon the confidential transfer technology Sui introduced in June, which utilizes Twisted ElGamal encryption and zero-knowledge proofs to verify transaction validity without revealing values. Unlike anonymity-focused privacy coins, Tessera prioritizes identified participation and regulatory oversight. While the project addresses a common barrier to blockchain adoption, Mysten has yet to announce a commercial launch date or confirm specific institutional partners for the network.