
Merkle Science brings confidential transfers to Sui, keeping balances hidden while compliance teams get access. The company raised $5.75M for its tools. No launch date set.
Merkle Science and Mysten Labs are building confidential transfers on Sui. The setup hides account balances from public view while giving compliance teams a structured backdoor. Justus Delp, VP of Business Solutions at Merkle Science, described the approach as a shift from retroactive analysis to privacy-by-default. Balances are encrypted. Compliance access becomes a permission layer, not a byproduct of full transparency.
Merkle Science was founded in 2018 and sells tools for transaction monitoring and investigation. Its Compass and Tracker products are used by law enforcement agencies and financial institutions. The company raised $5.75 million in a Series A round in 2021 to scale those capabilities.
The partnership with Mysten Labs is designed to bake the compliance architecture into Sui from the ground up. Delp, who holds a PhD from the University of Edinburgh, called it a fundamental change in how the firm thinks about on-chain assets. The new model assumes privacy as the default state, he said.
Merkle Science already serves privacy-focused protocols. It has formed partnerships with Aleo, Finoa, and Stablecoin Standard as part of its broader compliance capabilities. The confidential transfers initiative extends that philosophy to the infrastructure layer.
Delp said the company is working with regulators and industry bodies to align the design with existing rules. No timeline was given for a public launch on Sui, though the technical integration is complete.
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