AmericanFortress has introduced its beta privacy layer on the Arbitrum network, targeting institutional and high-frequency DeFi users with a novel system that hides counterparty details while maintaining auditability. The solution, called Send-to-Name, replaces long wallet addresses with human-readable FortressNames and generates one-time stealth addresses for each transaction, ensuring that only transacting parties can view the details. This approach avoids traditional mixers and aims to meet compliance standards, addressing a key barrier for institutional adoption in decentralized finance.
According to Michal Pospieszalski, CEO and CTO of AmericanFortress, the current on-chain transparency exposes sensitive data like counterparties, balances, and trading patterns in real time, which hinders institutional scalability. He emphasized that Arbitrum has become a critical execution environment for crypto markets, and the new privacy layer supports serious financial activity without sacrificing regulatory requirements. The system is designed for easy use, full compliance, and quantum resistance, as noted on the company’s website.
Arbitrum’s robust ecosystem, with over 2.1 billion cumulative transactions and nearly $20 billion in total value locked as of 2025, provides a fertile ground for this offering. The network hosts major DeFi protocols like GMX, a perpetuals exchange that held over $450 million in TVL and generated millions in fees. AmericanFortress positions its privacy infrastructure as operational risk management, reducing risks like front-running, copy trading, and surveillance of automated strategies. The beta version integrates with existing blockchain systems and is built on a patent-pending post-quantum security architecture for HD wallets.
To promote adoption, AmericanFortress launched the “Receive on Arbitrum Privately” campaign, inviting Arbitrum traders, liquidity providers, and other DeFi users to test private receiving through the beta wallet. The first 500 eligible participants will receive a lifetime FortressName, securing their Send-to-Name identity. This initiative targets communities active in perpetual trading, liquidity provisioning, and high-frequency market making, where address visibility is particularly sensitive.
Chase Allred, senior partnerships manager at Offchain (the service provider behind Arbitrum), praised the development, noting that privacy and usability are increasingly important as more sophisticated financial activities migrate on-chain. He stated that infrastructure improving operational security while maintaining compatibility with compliant blockchain ecosystems is a significant area of industry progress. AmericanFortress also looks ahead to the rise of AI-driven agents that will transact autonomously, asserting that privacy-preserving execution environments will become essential as algorithmic capital allocation expands on networks like Arbitrum.