AmericanFortress launches privacy infrastructure on Arbitrum for institutional DeFi

AmericanFortress has launched AmericanFortress beta on the L2 network Arbitrum, introducing a privacy infrastructure for institutional DeFi activity. The integration allows users to send assets using human-readable @names while automatically generating stealth addresses that hide on-chain exposure.

The AmericanFortress team has revealed that the system is designed to preserve auditability between counterparties. It does so while avoiding confusion with mixers or custodial transactions. 

Meanwhile, Arbitrum currently secures more than $15 billion in total value locked (TVL). The Layer 2 network also supports some of DeFi’s largest perpetuals and trading ecosystems. These include GMX and other high-volume applications.

Transaction visibility and wallet transparency have emerged as operational concerns for traders, funds, and automated systems operating in public blockchain environments, as institutional participation on-chain continues to grow. Michal Pospieszalski, the CEO and CTO of AmericanFortress, notes that financial infrastructure cannot scale institutionally if every transaction exposes counterparties, balances, and trading behavior in real time.

Pospieszalski says Arbitrum delivers privacy for serious financial activity

Pospieszalski emphasizes that Arbitrum has become one of the most important execution environments in crypto markets. Implementing the L2 network delivers a privacy layer designed for serious financial activity without relying on mixers or compromising compliance requirements.

The AmericanFortress beta also introduces Send-to-Name functionality on Arbitrum. That allows users to transact via FortressNames rather than directly exposing recipient wallet addresses. 

The infrastructure has been designed to maintain compatibility with existing blockchain systems. The design reduces transaction visibility that can contribute to front-running and trade monitoring.

The launch also follows recent cryptographic research published by AmericanFortress. It details a patent-pending post-quantum security architecture for hierarchical deterministic wallets. The broader infrastructure stack combines privacy-preserving transaction systems, naming infrastructure, and quantum-resistant wallet security into a framework for digital asset custody and settlement.

AmericanFortress is also introducing the “Receive on Arbitrum Privately” campaign as part of the launch. The move encourages Arbitrum users to test private receiving functionality through the beta wallet experience. The first 500 eligible participants will receive a lifetime FortressName.

Notably, the campaign will initially focus on Arbitrum-native DeFi communities. That includes perpetual traders, liquidity providers, and active on-chain market participants.

Offchain’s SPM says infrastructure improves operational security

Chase Allred, the Senior Partnerships Manager at Offchain, has noted that the infrastructure improves operational security.  That represents an important area of development industrywide while remaining compatible with compliant blockchain ecosystems.. 

Allred also notes that privacy and usability are increasingly becoming important as more refined financial activity moves on-chain. Offchain is the service provider for Arbitrum.

Meanwhile, AmericanFortress says that the infrastructure is intended to support the next generation of automated financial systems. That includes AI-driven agents transacting autonomously on-chain.

The company also believes that privacy-preserving execution environments will become increasingly necessary for “algorithmic capital allocation.” It will also be necessary as machine-driven trading activity continues to expand across decentralized networks.

AmericanFortress is building the Universal Privacy Layer for the blockchain economy. Its patented FortressName Send-to-Name system enables compliant, non-mixing transaction privacy across any chain, token, and assets for humans and AI agents. 

Arbitrum also provides infrastructure for applications, tokenization, and a dedicated blockchain environment. The L2 network hosts one of the largest ecosystems on Ethereum. It features deep liquidity and predictable execution at scale. 

Arbitrum also powers the programmable economy where markets, transactions, and business processes run automatically in software. It provides configurable execution, fee models, compliance, and governance for businesses launching dedicated environments. Organizations can define how their systems operate while remaining connected to share liquidity and a global settlement layer.