AmericanFortress has launched an experimental privacy infrastructure on Arbitrum, promising compliant, mixer-free transaction protection for institutional and high-volume DeFi users.
summary
- AmericanFortress Launches Send-to-Name Privacy Beta on Institutional DeFi Arbitrum
- The system uses hidden addresses and fortress names to hide counterparties while remaining auditable
- The launch builds on Arbitrum’s approximately $20 billion DeFi footprint and growing institutional presence
AmericanFortress rolled out its experimental privacy infrastructure on Arbitrum, offering a name-to-name submission system that uses human-readable FortressNames and automatically generated stealth addresses to hide counterparties while maintaining on-chain two-factor auditability. The company is developing a framework to launch directly into institutions and high-frequency DeFi participants running on Arbitrum, a layer-2 network that has emerged as one of Ethereum’s largest venues for on-chain derivatives and liquidity protocols. According to Arbitrum Transparency ReportThe network processed more than 2.1 billion cumulative transactions in 2025 with a total value locked of close to $20 billion and approximately $10 billion in stablecoins, underscoring the scale of activity targeted by AmericanFortress.
“Financial infrastructure cannot scale institutionally if every transaction exposes counterparties, balances and trading behavior in real time,” said AmericanFortress CEO and CTO Michal Pospizalski, arguing that Arbitrum has become “one of the most important execution environments in cryptocurrency markets” and that the new implementation “provides a privacy layer designed for serious financial activity without relying on mixers or compromising compliance requirements.” The system allows users to send assets to @names while the protocol creates one-time hidden addresses between counterparties, protecting transaction flows from third-party observers while keeping records available to those directly involved. attic WebsiteThe company describes FortressNames as “the first human-readable, anonymous wallet and secure transaction infrastructure for digital assets,” designed to replace “vulnerable wallet chains with one-time hidden addresses” with an “easy-to-use, fully compliant, and quantum-proof” method.
Privacy layer for institutional arbitration
The launch comes as Arbitrum continues to solidify its position as the dominant layer of Ethereum Layer 2 for DeFi, with external analyzes pointing to the total value locked at around $20 billion and leadership in Layer 2 DeFi market share through late 2025. Arbitrum has become a base for major perpetual futures venues such as GMXwhich already had more than $450 million worth of TVL on Arbitrum V2 by early 2024, according to Bitquery’s deep dive into the protocol. This permanent venue itself generated millions in fee revenue, and as later reported from crypto.news It showed, it generated more than $2.74 million in fees in a single day in January 2023.
AmericanFortress places its global privacy layer directly into this environment, presenting privacy as operational risk management rather than obfuscation. The demo is designed to be compatible with existing blockchain systems, with the aim of reducing transaction visibility that can feed front-end runs, copy trading and monitoring of automated strategies. The company’s recent crypto research outlines a patent-pending post-quantum security architecture for hierarchical deterministic wallets, and management says the broader suite combines the privacy of maintaining transaction trails, the naming of the infrastructure and the security of a quantum-resistant wallet into a “comprehensive framework for the custody and settlement of digital assets.”
Campaign, compliance and liquidity
As part of the rollout, the company is launching a “Privately Receive on Arbitrum” campaign that encourages Arbitrum traders, liquidity providers, and other DeFi users to test private receive flows via the test wallet. The first 500 eligible participants are set to receive FortressName for Life, a lifetime handle that secures their FortressName identity on the network. The campaign focuses on native Arbitrum communities already active across perpetual trading, liquidity provision and high frequency in the on-chain market industry, where address-level visibility is particularly sensitive.
“Privacy and ease of use are increasingly important as more sophisticated financial activity moves on-chain,” said Chase Allred, senior director of partnerships at Offchain, the service provider behind Arbitrum. Allred argued that infrastructure “that improves operational security while remaining compatible with blockchain-compatible ecosystems represents an important area of development for the broader industry,” echoing themes that have emerged across the previous crypto.news coverage Of the institutional stablecoins and yield products deployed at Arbitrum.
AmericanFortress says the infrastructure was built with the next generation of automated finance in mind, including AI-driven agents that will transact autonomously across DeFi paths. The company asserts that privacy-preserving execution environments will be essential as algorithmic capital allocation and automated-driven trading expand across networks like Arbitrum, which has already been featured by CoinGekko Research As the largest solution for the second layer through TVL participation. For Arbitrum, the move ushers in a broader evolution towards institutional DeFi, following integrations ranging from Chainlink oracle To produce stablecoins and make the network privacy story a lively competitive point against other Ethereum Layer 2 platforms.
