Circle, the issuer of the USDC stablecoin, is launching a new privacy-focused, regulatory-compliant stablecoin in collaboration with the Aleo network.
News summary
* Circle, the issuer of the USDC coin, is collaborating with Aleo to launch USDCx, an interoperable stablecoin with a high focus on privacy.
* USDCx on the Aleo network allows users to protect sensitive data, such as transaction records, while complying with regulatory requirements.
* This launch is the second to operate through Circle's new xReserve platform, an infrastructure allowing blockchain networks to launch their own private stablecoins backed by USDC.
Full details
A new privacy-focused stablecoin, supported by Circle through its xReserve platform, is preparing to launch on the testnet of the Layer-1 blockchain network Aleo.
The new coin was created in collaboration with Circle and will be known as USDCx on Aleo. It is a private, dollar-backed, interoperable stablecoin that allows users to comply with regulatory standards while protecting selected sensitive data or their private transaction records.
Examples of use cases:
Josh Hawkins, Senior Vice President of Strategy, Policy, and Communications at Aleo, noted strong interest from current stablecoin users and those interested in using them but who were waiting for a privacy payment infrastructure like USDCx.
The specified use cases for the private and programmable stablecoin include the following:
* Secure global payroll payments: Individuals can send and receive their salaries securely without disclosing their income details or spending habits.
* Remittances: Providing a private and secure way to send money internationally.
* Infrastructure modernization.
* Foreign aid and national security.
Launch plan and other Circle platforms
* Launch date: The token is expected to be launched on Aleo's mainnet by the end of January.
* Aleo technology: Aleo raised $28 million in 2021 from prominent firms such as a16z and Coinbase Ventures to focus on blockchain privacy using zero-knowledge proofs.
* xReserve platform: Aleo is the second blockchain network collaborating with Circle to launch the interoperable USDCx, following a similar launch across the Canton network the previous week. Circle revealed the xReserve platform less than a month ago, allowing blockchain networks to launch their own private stablecoins backed by USDC, uniting liquidity and enhancing user experience.
* Circle expansion: The company is also working on its own Layer-1 network specifically designed for stablecoins called Arc.
* Market position of USDC: The market value of the company's USDC coin has nearly doubled over the past year, now exceeding $78 billion in circulation.
