Mysten Labs has introduced Tessera, a confidential B2B settlement network prototype on the Sui blockchain. Designed to resolve the tension between institutional privacy and regulatory compliance, Tessera uses KYC gating and encrypts transaction values while keeping sender and receiver addresses visible. The system integrates Mysten's Seal MPC protocol to grant temporary, revocable transaction visibility to auditors and regulators. The SUI token showed no clear price reaction to the announcement, trading steadily around $0.69.
Tessera confidential B2B settlement network
- ▪Tessera encrypts payment amounts from public view while leaving the sender, receiver, and timestamp of transactions visible on the blockchain.
- ▪Tessera supports one-time transfers, recurring payment channels, and disputed-payment arbitration, with network operators retaining the ability to freeze accounts or pause the network.
- ▪Tessera restricts access to KYC-verified members, allowing approved businesses to settle invoices privately using a confidential stablecoin.
- ▪Mysten Labs introduced Tessera, a confidential business-to-business settlement network prototype built on the Sui Layer-1 blockchain, on August 10, 2026.
Seal MPC selective access control
- ▪Under the Seal MPC system, Tessera can grant scoped, time-limited, and revocable transaction visibility to regulators, tax authorities, and dispute arbiters without allowing them to move funds.
- ▪Tessera combines Sui's confidential-transfer technology with Mysten Labs' Seal protocol, which uses threshold encryption to distribute control of decryption keys.
Sui confidential transfer technology
- ▪The Sui network has processed over $1 trillion in stablecoin volume, positioning the blockchain as a payments infrastructure competitor.
- ▪Sui's underlying confidential-transfer technology, which opened for public testing in June 2026, uses Twisted ElGamal encryption and zero-knowledge proofs to validate payments without revealing their value.
Enterprise blockchain privacy competition
- ▪Blockchain networks competing for institutional privacy include Circle with its Arc Privacy platform and XRP Ledger validators considering confidential transfers for tokenized assets.
- ▪Traditional financial entities competing in the blockchain settlement space include Visa, Mastercard, and JPMorgan's Onyx platform.
SUI token market reaction
- ▪Following the Tessera announcement on August 10, 2026, the SUI token showed no clear price reaction, trading around $0.69 within a 24-hour range of $0.684 to $0.704.
- ▪Mysten Labs has not disclosed a commercial launch timeline, participating companies, or a specific stablecoin issuer for the Tessera prototype.
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