Aztec Brings zk.money Back With a New Privacy Wallet
Aztec Network has relaunched zk.money as an open-source, self-custodial privacy wallet designed to keep payments private while using Ethereum as its settlement layer.
The new product is separate from the earlier zk.money application that operated on Aztec Connect. That version was shut down in 2024, and users of the previous system cannot carry their old accounts or funds into the relaunched wallet. Aztec's own history of the project confirms that zk.money and Aztec Connect were officially shut down as the team moved toward a new privacy-focused architecture.
Inside the new zk.money system, balances, payment amounts, counterparties and transaction history are private. Users can also register a public tag based on an ENS-powered username, allowing them to send and receive payments without sharing a long wallet address.
How the New zk.money Wallet Works
The wallet is built on Aztec's privacy-focused Layer 2 rollup. Aztec's official documentation describes the network as a privacy-first zkRollup on Ethereum that supports private state and confidential transactions.
The supplied source says the wallet initially supports DAI deposits, while Aztec Labs told CoinDesk that users can deposit DAI, USDC and USDT from Ethereum, with USDC and USDT converted into DAI before entering the private environment. DAI therefore becomes the asset used for payments inside zk.money.
The wallet is self-custodial, meaning users control their funds rather than handing them to Aztec Labs as a traditional custodian. Users can also request payments through links or send funds to readable names such as bob.zk.money, making the payment experience closer to a conventional username-based service.
Ethereum Deposits Are Still Public
zk.money does not make every part of a transaction completely invisible.
When funds are deposited from Ethereum, the originating address and deposited amount remain visible on Ethereum. The privacy begins once the funds move into Aztec's private environment, where internal balances, payment amounts and counterparties are shielded.
Aztec's official bridging documentation specifically explains that the deposit amount and original sender are visible on Ethereum, while the recipient on Aztec can remain private. Withdrawals work in the opposite direction and require the relevant rollup proof to be generated and verified before funds can be claimed on Ethereum.
This means users should distinguish between private activity inside Aztec and the public entry and exit points between Ethereum and the rollup.
New Wallet Comes With Transaction Limits
The relaunched zk.money product is being introduced with relatively restrictive limits while the system remains experimental.
According to the supplied report, each deposit, payment and withdrawal must remain below $2,500, while users collectively have a $50,000 daily deposit allowance that replenishes over time. Aztec says these limits are intended as safeguards while the new system and its cryptography are still being tested.
The report also says an Ethereum deposit costs 35 cents plus Ethereum network fees, while a withdrawal costs 20 cents. Inside zk.money, users receive 100 sponsored transactions per day, although sponsored payments can be delayed if the contract funding the network fees runs out or cannot cover the prevailing transaction cost.
Privacy Features Include Payment Tags
One of the wallet's usability features is the ability to use a public tag rather than a traditional hexadecimal wallet address.
A user can register a readable identifier and use it to receive payments. This creates a simpler interface for private transfers while keeping the underlying transaction information shielded inside the Aztec environment.
The combination of self-custody, readable payment identifiers and sponsored internal transactions is intended to make private payments easier to use without requiring users to understand the underlying zero-knowledge technology.
At the same time, the wallet screens Ethereum addresses used for deposits and withdrawals against a sanctions policy. The supplied report also says a sealed server co-signs certain operations within zk.money, although the documentation states that this server cannot independently spend a user's funds.
Aztec's Earlier zk.money Served 75,000 Wallets
The new release builds on a product with a substantial history.
Aztec's earlier zk.money application launched in 2021 and was later integrated into the Aztec Connect ecosystem. Aztec previously said the product had served more than 75,000 users and processed more than $100 million in payment volume.
The original system was fundamentally different from the current product. Aztec later decided to sunset zk.money and Aztec Connect as it redesigned its architecture around a more decentralized and programmable privacy network. Aztec's historical documentation says the original zk.money and Aztec Connect were officially shut down in 2023.
The current zk.money release should therefore be viewed as a new implementation rather than a simple reopening of the previous service.
Security Remains a Key Consideration
The relaunch comes while Aztec's current network remains in an Alpha phase, making security disclosures particularly important.
Aztec's current Alpha documentation describes the network as a live production deployment with real staking, governance and user transactions, but also warns that it remains early, unaudited software where critical bugs are possible.
The supplied report says Aztec disclosed a critical vulnerability in its V5 Alpha proving system in August 2026 and planned a fix for V6. It also says zk.money would launch before the flaw was fixed and that a separate system called Oxide would check payments for errors caused by bugs in the network's software.
Aztec's security history reinforces why the project continues to emphasize testing. Its official materials have repeatedly described the cryptography behind its early systems as complex and experimental.
Ethereum Adds Glamsterdam to Its Bug Bounty Scope
The zk.money relaunch comes alongside several other developments across the Ethereum ecosystem.
The upcoming Glamsterdam upgrade is now partially covered by the Ethereum Bug Bounty Program. The official program says Glamsterdam specifications and EIPs are already in scope with a 0.5x multiplier, while clients will become eligible later when release candidates are announced. The program offers rewards of up to $1 million for qualifying vulnerabilities.
Glamsterdam's major changes include enshrined proposer-builder separation (ePBS) and block-level access lists (BALs). The Ethereum Foundation has announced Sepolia testing for Glamsterdam, with the upgrade intended to advance Ethereum's Layer 1 scaling roadmap.
Balancer Moves Toward an Orderly Wind Down
Elsewhere in DeFi, Balancer DAO has approved a proposal for an orderly wind down of the protocol, while a separate proposal to fork and continue the project did not pass.
The official Balancer BIP-928 proposal sets out a phased shutdown. Pools that can be paused are scheduled to move to withdrawals-only mode on October 30, 2026, while the V3 Vault is scheduled to pause on November 30, 2026. The proposal also states that liquidity providers can withdraw during the exit period.
BAL holders are scheduled to receive the DAO treasury through a later redemption process. According to the proposal, the first round is planned for the end of May 2027, when holders will burn BAL and receive a pro rata share of the treasury, subject to the final implementation and announced snapshot.
Payy Reports Bridge Exploit
Privacy-focused payments network Payy has also been dealing with a major security incident.
Payy published a post-mortem concerning its bridge exploit and identified a vulnerability involving the Noir/Barretenberg proving system as the root cause, according to the supplied report. The incident is notable because Noir and Barretenberg are technologies developed within the broader Aztec ecosystem.
The incident should nevertheless be distinguished from the zk.money relaunch itself. A vulnerability affecting a separate bridge does not by itself establish that zk.money is compromised. Payy's own official incident update provides the project's account of the exploit and investigation.
Privacy and Security Remain Central to Ethereum's Next Phase
The zk.money relaunch highlights a broader challenge for Ethereum applications: users increasingly want the benefits of public blockchains without exposing every payment and financial relationship.
Aztec's approach is to move private activity into a zero-knowledge rollup while retaining Ethereum as the settlement layer. The new wallet adds a more accessible interface through readable payment tags and sponsored internal transactions, while keeping users in control of their funds.
At the same time, the project's Alpha status and recent security disclosures demonstrate why privacy infrastructure requires careful testing and security review. For users, the distinction between what is private, what remains public and what risks are still experimental is as important as the privacy technology itself.
