Circle Launches USDCx: Privacy-Focused Stablecoin on Aleo Blockchain

Circle has launched USDCx, a privacy-focused stablecoin built on the Aleo blockchain, marking a strategic MOVE to address institutional hesitancy toward public ledger transparency. The new token obscures transaction details from public view while maintaining compliance records for regulatory oversight—a balance designed to appeal to banks and enterprises exploring asset tokenization.

The launch reflects growing demand for confidential blockchain transactions in corporate finance. "People don’t want to reveal their business revenues," said Aleo co-founder Howard Wu, highlighting how traditional blockchains inadvertently expose sensitive commercial intelligence through transparent transaction histories.

USDCx represents Circle's latest effort to bridge decentralized finance with institutional requirements, following its mainstream USDC stablecoin success. The Aleo partnership leverages zero-knowledge cryptography to create audit trails for authorities without sacrificing commercial privacy—a feature that could accelerate real-world asset adoption on blockchain networks.