In a revolutionary step for privacy in blockchain, Aleo Network Foundation announced the launch of $USDCx on the Aleo testnet on December 9, 2025 – a private stablecoin backed by $USDC from Circle. This asset, built on the xReserve infrastructure, uses zero-knowledge proofs to conceal transaction details such as wallet addresses and payment amounts, while maintaining full regulatory compliance. USDCx enables seamless cross-chain transfers to standard USDC without risky bridges, making it ideal for institutions that require "bank-level" confidentiality.
"After years of hype, blockchain is entering the era of utility, but most stablecoins on transparent networks hinder mass adoption," said Leena Im, COO of Aleo. This launch – the second on xReserve after Canton – signals a shift to a privacy-first architecture, similar to HTTP to HTTPS. USDCx opens private payments for DeFi, e-commerce, and prediction markets, attracting interest from Request Finance, Toku, and banks.
Experts predict that with the mainnet launch in January 2026, USDCx will accelerate institutional inflow into crypto, lower barriers for businesses, and intensify competition. The stablecoin market grew by 78% in 2024, reaching $43.9 billion for USDC, while the GENIUS Act in the USA adds regulatory "tails." The testnet is already open for developers – it's time to build confidential dApps.
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