Schnorr + Taproot don't hide transactions. A transaction is still sent from A to B on the blockchain. Schnorr is simply a new signature system. It reduces the size of the signature so that the signatures are all about the same size. ECDSA (The current signature system in Bitcoin) was designed as an open alternative to Schnorr before the patent on Schnorr expired (Shortly after Bitcoin was first released). Satoshi probably would have used Schnorr if the patent wasn't still active at the time. ECDSA does what Schnorr does, except that the signatures become much larger when there are multiple signers. ECDSA is therefore much more inefficient and can cause large and complex transactions (eg. 3 out of 7 multisig) to be very expensive due to their size.
Taproot simply gives privacy to the script that somebody wants to run and keeps the hash for the script roughly the same size as a regular transaction. So if somebody wants to timelock (vault) their bitcoin and not reveal the information about the timelock or create a complex script while not revealing every detail of the possibilities of that script (A privacy concern), that is now possible.
None of this stops exchanges from transacting from one specified address to another.
