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Circle and Aleo Launch USDCx, a Privacy-Enabled USDC on Aleo Testnet

The design targets institutional payments by combining public privacy with regulator-accessible records.

Overview

  • USDCx is live on Aleo’s testnet as of December 9, enabling confidential on-chain dollar transfers using zero-knowledge proofs.
  • Each transaction embeds a compliance record accessible to Circle, delivering what Aleo describes as banking-level privacy rather than full anonymity.
  • The token is backed 1:1 by USDC held in Circle’s xReserve, supporting burn-and-mint interoperability without third-party bridges.
  • Aleo highlights use cases including global payroll, humanitarian aid, e-commerce, peer-to-peer payments, and private DeFi, with developers now experimenting.
  • A mainnet launch is expected by the end of January 2026, and Aleo is the second network to integrate xReserve after Canton.