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Circle and Aleo Launch USDCx Privacy Stablecoin on Aleo Testnet

The design pairs USDC backing with zero-knowledge confidentiality, providing regulator-accessible compliance records.

Overview

  • USDCx is live for developer testing on Aleo, enabling private dollar transfers validated by zero-knowledge proofs.
  • Each token is backed 1:1 by USDC via Circle’s xReserve, allowing cross-chain movement without relying on third-party bridges.
  • On-chain transaction details are concealed from the public, while compliance records can be accessed by Circle for lawful inquiries.
  • Aleo becomes the second network to deploy an xReserve-powered USDCx following last week’s launch on Canton Network.
  • A mainnet launch is targeted by the end of January 2026, and Circle’s shares gained about 6% after the announcement.