Circle to Launch Private Version of USDC for Banks - Unchained

UnchainedCrypto · 2025-12-10T12:20:39+00:00

Circle is launching USDCx, a privacy-focused stablecoin on Aleo, offering banking-level privacy while ensuring regulatory compliance through zero-knowledge cryptography. Transactions maintain a 1:1 peg to USDC, with compliance records accessible to authorities.

UnchainedCrypto

2025-12-10 12:20:39

Abstract generation in progress

Stablecoin issuer Circle is rolling out a privacy-enhanced stablecoin called USDCx on the layer 1 blockchain Aleo, aiming to give institutions “banking-level privacy” while preserving regulatory compliance.

USDCx is a USDC‑backed, dollar-pegged stablecoin issued via Circle’s xReserve infrastructure. It is designed so that value remains tied 1:1 to reserves like standard USDC, but transactions occur in a privacy-preserving environment rather than on a fully transparent public ledger.

This story is an excerpt from the Unchained Daily newsletter.

Subscribe here to get these updates in your email for free

On Aleo, USDCx transactions will be processed using zero‑knowledge cryptography, so onchain observers only see opaque data rather than clear sender, receiver, and amount information.

However, each USDCx transaction creates a “compliance record” that Circle can access if requested by law enforcement or regulators, meaning the system is not fully anonymous.

Targeted primarily at banks and legacy traditional finance firms, USDCx has already launched on Aleo’s testnet, with plans to go live on mainnet around late January.

USDC-0.08%

ALEO9.04%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.