COTI is extending its privacy infrastructure to Avalanche, bringing Privacy-on-Demand to applications operating on the network. The integration is designed to give developers and users access to confidential computation without requiring assets or smart contracts to move to a separate privacy-focused blockchain.
The move comes as privacy becomes a larger consideration for institutional finance, stablecoins and real-world assets. Avalanche already provides configurable infrastructure for public and private networks, while COTI is positioning its technology as an additional privacy layer that applications can activate when confidentiality is required.
COTI Adds Privacy-on-Demand to Avalanche
According to COTI, Privacy-on-Demand is now available for Avalanche applications and assets. The system uses privacy-preserving computation to process information without exposing the underlying data, allowing developers to add confidentiality to existing blockchain applications rather than rebuilding them on a separate network.
COTI says its approach is based on Garbled Circuits and multiparty computation. Its technical documentation describes the broader privacy architecture as enabling computation over protected information while supporting programmable confidentiality for decentralized applications.
One of the main differences in the model is that privacy can be requested when it is needed. Tokens and contracts can remain on Avalanche, while private computation is handled through COTI’s infrastructure. This could be relevant for applications dealing with information that businesses would not normally want exposed through a fully transparent public ledger.
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The company also highlights selective disclosure as part of its approach. Instead of making transaction information completely inaccessible, applications can determine who is authorized to access protected information, a feature that COTI says can help address compliance requirements while preserving confidentiality.
COTI is targeting several categories of Avalanche applications with the integration. These include institutional finance, real-world assets, stablecoin settlement, payments, private DeFi and Avalanche L1s that require additional confidentiality.
The integration also arrives as Avalanche continues developing infrastructure aimed at regulated finance. Avalanche’s current builder documentation describes privacy and compliance as core infrastructure capabilities, including validator-controlled networks, data residency options and protocol-level transaction permissions for Avalanche L1s.
COTI’s contribution is different from simply operating a private Avalanche network. Privacy-on-Demand is intended to provide application-level confidential computation while allowing assets and smart contracts to remain within the existing Avalanche environment.
Privacy Portal Opens Private AVAX and USDC
COTI has also made its Privacy Portal available for Avalanche C-Chain users. The application allows users to convert supported assets into private representations, with COTI initially highlighting AVAX and USDC as available assets.
The model gives users control over privacy keys used to access protected information. COTI says private balances can subsequently be held, transferred and received while remaining hidden from general public blockchain observers.
The integration could have particular relevance for stablecoins and institutional transactions. Businesses often need blockchain settlement while limiting the public visibility of counterparties, transaction amounts or other commercially sensitive information, creating a potential use case for programmable privacy.
COTI is also positioning the infrastructure for Avalanche’s expanding L1 ecosystem. Developers can use Avalanche to create customized chains with their own validator and compliance configurations, while COTI’s privacy infrastructure is intended to provide another option for applications requiring confidential computation.
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The technology is not limited to financial transfers. COTI says Privacy-on-Demand can support confidential business logic involving tokens, real-world assets, NFTs and other programmable applications. The company has also promoted private application development involving AI tools and machine-to-machine workflows.
For Avalanche users and developers, the significance of the integration will ultimately depend on actual adoption. The availability of privacy infrastructure does not automatically mean institutions will deploy confidential applications, and COTI’s claims about performance advantages over alternative privacy technologies remain claims from the provider rather than independent benchmarks.
Still, the integration adds another privacy option to Avalanche’s expanding infrastructure stack. With the Privacy Portal targeting users directly and Privacy-on-Demand targeting developers and applications, COTI is attempting to make confidential blockchain activity available without requiring users to leave the Avalanche ecosystem.
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