Inco Network and Circle Research have released a whitepaper introducing the Confidential ERC-20 Framework, which aims to enhance privacy by transforming standard ERC-20 tokens into confidential versions that obscure balances and transaction amounts. The framework uses Fully Homomorphic Encryption (FHE) within the Ethereum Virtual Machine (EVM) context to enable secure and private transactions while maintaining compliance with regulations. It provides tools for programmatic risk management and compliance controls, making it suitable for applications like supply chain payments and payroll. The initiative addresses the need for compliant privacy on blockchains by balancing confidentiality with the potential risks posed by anonymity, ensuring regulated financial institutions can meet their legal responsibilities. The framework also supports encrypted data composability and serves as a modular building block for privacy-focused decentralized finance (DeFi) and financial services, representing a significant advancement in on-chain privacy solutions.