There's a difference between keeping money private and being able to use that money privately.
I think this distinction matters a lot for DeFi.
Imagine holding stablecoins in an encrypted wallet.
Your balance isn't publicly readable, which is useful.
But what happens when you want to move those assets or put them into a yield strategy?
If every financial action requires converting everything back into publicly visible balances, you've only solved part of the privacy problem.
This is why I spent some time reading through @primus_labs Confidential Finance documentation.
The product runs on BNB Chain and supports several operations involving encrypted stablecoins.
Users can shield supported assets into encrypted form, transfer encrypted assets to another wallet, or deposit into a Confidential Vault connected to yield-generating strategies.
FHE allows encrypted balances to be processed without exposing the underlying amounts during those computations.
The interesting part is that privacy isn't limited to holding assets.
It extends into financial activity.
For an institutional treasury, concealing the size of a position could help avoid broadcasting sensitive allocation decisions.
Of course, there's a difference between a private balance and complete anonymity.
Blockchain interactions can still expose metadata, while the underlying yield strategy retains its own smart contract, liquidity, and counterparty risks.
And FHE operations are more computationally demanding than ordinary transactions.
So I wouldn't measure the success of this approach by how much activity it can hide.
I'd look at whether confidential transfers and yield operations remain practical, secure, and reliable when real capital is involved.
That's where the infrastructure has to prove its value.