PANews reported on June 11 that Arc has released a privacy white paper and launched Arc Privacy, a confidential smart contract engine, to provide a managed privacy solution for on-chain finance. This optional feature aims to protect sensitive financial activities such as payroll processing, fund management, transaction workflows, and asset issuance, while preserving access permissions for authorized parties such as auditors and compliance officers.

Arc Privacy is designed with "privacy in control" in mind. It ensures that sensitive details are not exposed to the public blockchain during transaction processing, while allowing authorized parties to access them when needed. Arc states that most public blockchains expose transaction data and smart contract states by default, making it difficult to migrate many real-world financial workflows on-chain. Arc's privacy features ensure that salaries should not become market data, fund flows should not expose counterparties and strategies, and transaction workflows should not broadcast intent before execution. In the future, Arc will also support developers building multi-step private applications within the EVM environment without having to start from scratch.