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Circle Develops Private Stablecoin USDCx

Circle Develops Private Stablecoin USDCx

CoinspaidmediaCoinspaidmedia2025/12/19 09:34
By:Coinspaidmedia

Circle, in partnership with Aleo, is preparing to launch a new stablecoin aimed at the banking sector and corporate users. The defining feature of this asset is bank-grade privacy.

Circle, the issuer of USDC, announced a test launch of a new stablecoin called USDCx. The asset is being developed in collaboration with Aleo, a blockchain for fully private applications using zero-knowledge proofs (ZKP), and is designed to provide corporate clients and financial institutions with a regulated, private stablecoin.

The project is based on integrating Aleo’s ZKP technology with Circle’s infrastructure, enabling transactions that protect the privacy of both senders and recipients. USDCx is deployed on Aleo’s testnet via Circle’s non-custodial XReserve smart contract, which issues the token based on collateralized USDC.

USDCx is positioned as a tool for organizations that must meet strict financial data protection requirements. The asset will fully comply with regulatory standards, allowing transaction data to be disclosed to authorized parties while remaining hidden from the public.

The test infrastructure includes reserving USDC to mint USDCx on the Aleo network, ensuring transparent collateralization and scalability of the issuance process. This approach allows cryptographic privacy to be combined with auditable reserves, critical for banking systems and corporate finance.

The confidential stablecoin is intended to expand the use of digital assets in areas where public blockchains are unsuitable due to the risk of exposing sensitive information. Circle plans to broaden the integration of USDCx as the Aleo network evolves and industry feedback is gathered.

Circle recently received a Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), bringing the company closer to obtaining a full money services license in the UAE. USDC already holds official Accepted Fiat-Referenced Token (AFRT) status in ADGM, alongside USDT by Tether and assets issued by Ripple and Paxos.

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