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Avalanche has introduced a new privacy-focused solution, launched on September 16, 2026, that enables users to securely store, send, and receive supported digital assets with transaction details remaining confidential on the network.
Privacy technology and encrypted transactions
The technology, developed by blockchain platform $COTI, brings confidential transaction processing to the Avalanche Network. According to $COTI, all transaction information remains encrypted throughout the process, allowing blockchain-based applications to manage sensitive data while safeguarding privacy.
To achieve this, $COTI relies on Multi-Party Computation and leverages Garbled Circuits cryptography. This method allows multiple parties to jointly compute encrypted data without revealing any underlying information. The input of transactional data occurs off-chain, and only an encrypted output is shared on the blockchain.
With this approach, users can decrypt their own transaction information locally through their client, meaning that actual transaction amounts are never publicly visible on the blockchain.
Mini dictionary: Garbled Circuits, a cryptographic method used in secure multi-party computation, allows parties to jointly compute a function over their inputs while keeping those inputs private.
Although the $COTI solution is fully launched, parts of its documentation still refer to the Fuji testnet, indicating ongoing development and refinement.
Janus Henderson joins Avalanche as validator
Avalanche’s recent developments include the participation of Janus Henderson, a global asset manager overseeing approximately $500 billion in assets. Janus Henderson has become a validator on the Avalanche network, directly contributing to the platform’s security and resilience.
By acting as a validator, Janus Henderson takes part in governance and consensus mechanisms, bolstering Avalanche’s role as a venue for tokenized finance and onchain credit solutions.
The asset manager is also involved in Tranched, a credit platform focused on onchain financial markets. Janus Henderson holds an equity stake in Tranched and will support its issuance activities, signaling commitment to integrating traditional finance infrastructure with blockchain technology.
Tranched currently manages approximately $300 million in onchain assets and holds over $3 billion in active deal pipeline, according to the announcement.
| Institution/Platform | Involvement | Assets/Value |
|---|---|---|
| Janus Henderson | Avalanche validator, equity investor in Tranched | $500 billion (total managed); $300 million (Tranched onchain assets) |
| Tranched | Onchain credit platform, backed by Janus Henderson | $300 million AUM; $3 billion deal pipeline |
Institutional demand for blockchain privacy
These two developments underscore the growing demand among financial institutions for solutions that address both transparency and privacy on public blockchains. Institutions often require transaction confidentiality, while public blockchains have traditionally prioritized open visibility.
$COTI’s privacy features aim to bridge this gap by keeping sensitive financial activity confidential while still leveraging the transparency and security of blockchain systems.
Institutional participation as validators and stakeholders also marks another step in connecting traditional financial markets with blockchain-based infrastructure.
By adopting confidentiality technology and attracting major asset managers as validators, Avalanche is positioning itself to meet institutional requirements for privacy, security, and robust financial infrastructure on public blockchain networks.