Aleo and Circle are launching USDCx, a new, privacy-centric version of the USDC stablecoin designed to provide "banking-level" confidentiality while maintaining regulatory visibility and dollar backing. The token is launching first on Aleo's testnet and was built using Circle's new xReserve platform, which allows partner blockchains to issue their own USDC-backed assets that interoperate with native USDC liquidity. New role of USDCx  USDCx remains pegged one-to-one with the U.S. dollar, but it is issued on Aleo, a layer-1 blockchain architecture around zero-knowledge proofs for private transactions. Rather than broadcasting clear-text transaction details on-chain, Aleo represents transfers as encrypted data blobs that shield sender, receiver, and amounts from public view.  Circle and Aleo position this as a response to institutional reluctance to use public blockchains, where transaction histories are permanently transparent and can expose sensitive commercial information or trading strategies. By putting stablecoin predictability together with privacy, they hope to make on-chain dollars more palatable to banks, enterprises, and fintech platforms.  Despite the privacy focus, USDCx is not an absolute anonymity network. Every transaction contains a "compliance record," which can be viewed by Circle if a regulatory or law enforcement agency wants information, but not accessible on the main chain. Aleo executives claim this to be a "banking level of privacy," which is a middle-ground balance for confidentiality with regulatory support rather than utilizing absolute anonymity methods found in other private currencies. Target use cases and strategy  Aleo claims strong interest in inbound usage related to payroll processors, infrastructure, and foreign aid projects, and domestic national security-related application requirements for anonymous but traceable flows. Request Finance and Toku, other payroll service providers, and prediction markets are assessing USDCx to support salaries and wages without revealing income information and strategy to a public blockchain.  USDCx on Aleo is a part of a larger strategy being undertaken by Circle that involves its xReserve infrastructure and an upcoming stablecoin-optimized Layer 1 network named "Arc," which aims to make USDC-compatible assets programmable and interoperate across different chains. Aleo, which had raised capital from investors such as a16z and Coinbase Ventures for developing zero-knowledge solutions, believes a mainnet launch for USDCx will follow the end of the current testnet period.

Circle is preparing to launch USDCx, a privacy-enhanced version of USDC built on the Aleo blockchain to offer institutions encrypted transactions with regulatory-ready compliance records. The move reflects accelerating demand for tokenization and privacy-preserving financial infrastructure. Aleo Partners With Circle for Private Stablecoin Circle is expanding its stablecoin strategy with the introduction of USDCx, a […]

Circle will launch USDCx, a privacy-enhanced version of USDC built on the Aleo blockchain to offer institutions encrypted transactions.

Standard Chartered‑backed Aleo Network Foundation is launching USDCx, a USDC‑backed, privacy‑preserving stablecoin on Aleo testnet via Circle xReserve, targeting compliant private payments. Summary USDCx will run on Aleo’s zero‑knowledge infrastructure while remaining fully backed by USDC reserves through Circle’s xReserve, keeping interoperability with native USDC.​ Aleo pitches USDCx as combining bank‑grade privacy with configurable compliance, letting institutions prove rules are met without exposing transaction details on public ledgers.​

A new Circle–Aleo stablecoin project highlights the growing demand for privacy features as firms weigh blockchain use against the risks of transparency.

Circle, the issuer of USDC, has unveiled a new stablecoin, USDCx, designed to offer enhanced privacy for blockchain transactions.

Circle, об'єднує зусилля з блокчейн-платформою Aleo для випуску принципово нового активу — USDCx.

Circle is developing a new privacy-focused stablecoin called USDCx to meet growing institutional demand for confidential blockchain payments.

Aleo 网络上的 Circle 的 USDCx 通过零知识证明来实现机密交易，同时储备金保留在 Circle 控制的 USDC 合约中。

Circle's USDCx on the Aleo network uses zero-knowledge proofs to enable confidential transactions while reserves stay in Circle-controlled USDC contracts.

Blockchains make data public, but Aleo founder Howard Wu hopes to lure big banks and institutions to crypto through semi-private stablecoins.

Blockchains make data public, but Aleo founder Howard Wu hopes to lure big banks and institutions to crypto through semi-private stablecoins.

Stablecoin issuer Circle is developing a privacy-enhanced version of its US dollar-pegged USDC token, aiming to spur institutional adoption by offering greater confidentiality than traditional public blockchains allow. The new stablecoin, called USDCx and targeting banking and enterprise users, is being built in partnership with the privacy-focused blockchain company Aleo, Fortune reported on Tuesday, citing Aleo co-founder Howard Wu. Unlike most existing stablecoins, which have wallet addresses and transaction details fully visible onchain, USDCx is designed to provide “banking-level privacy.” Circle would still be able to provide a compliance record if law enforcement or regulators request information on specific transactions, according to the report.

A new Circle–Aleo stablecoin project highlights the growing demand for privacy features as firms weigh blockchain use against the risks of transparency.

Circle is developing a privacy-focused stablecoin called USDCx in partnership with Aleo. USDCx aims to offer enhanced transaction privacy while […]

Stablecoin issuer Circle is developing a privacy-enhanced version of its US dollar-pegged USDC token, aiming to spur institutional adoption by offering greater confidentiality than traditional public blockchains allow. The new stablecoin, called USDCx and targeting banking and enterprise users, is being built in partnership with the privacy-focused blockchain company Aleo, Fortune reported on Tuesday, citing Aleo co-founder Howard Wu. Unlike most existing stablecoins, which have wallet addresses and transaction details fully visible onchain, USDCx is designed to provide “banking-level privacy.” Circle would still be able to provide a compliance record if law enforcement or regulators request information on specific transactions, according to the report.

Discover how Circle's integration of USDCx with the Canton Network via xReserve enables interoperable, privacy-preserving, USDC-backed stablecoin transactions, transforming cross-chain liquidity and institutional finance workflows.