Blockchains are public databases. That’s an immediate roadblock for large institutions like banks, whose clients largely don’t want their balances and payments history open to prying eyes. Now, the crypto giant Circle has partnered with the blockchain Aleo to launch a “private” version of its stablecoin called USDCx, which will obscure transaction histories, Howard Wu, cofounder of Aleo, told Coins2Day.
TL;DR
- Circle and Aleo launched USDCx, a "private" stablecoin obscuring transaction histories.
- USDCx offers banking-level privacy, with Circle retaining compliance records for inquiries.
- This launch supports crypto's push for institutional adoption and asset tokenization.
- Demand for privacy-focused stablecoins comes from payroll services, prediction markets, and more.
“People don’t want to reveal their business revenues. They don’t want to reveal business intelligence,” Wu said. “But the way that transparent blockchains work today unfortunately means that every time you transact, you are leaking that data.”
The recently introduced token from Circle, which, similar to other stablecoins, is tied to assets such as the U.S. Dollar, will not offer complete privacy. Each exchange involving the token will feature what Wu described as a “compliance record,” that Circle can access should law enforcement or other agencies inquire about particular transactions. Nevertheless, for the general public observing a blockchain record, the exchanges will appear indecipherable and akin to “blobs of data,”, Wu stated.
“This is banking-level privacy, as opposed to ‘privacy privacy,’” he added.
Big banks lean in
USDCx's introduction coincides with a wider initiative by the cryptocurrency sector to encourage major financial firms and organizations to adopt blockchain technology. This endeavor seems to be building momentum, particularly concerning tokenization, which involves tokenizing tangible assets such as home loans or even the U.S. Dollar on a blockchain.
The asset management giant BlackRock has launched its own tokenized money market fund BUIDL, the online brokerage Robinhood has dabbled in blockchain-based stock trading, and fintech giants like Stripe have invested huge sums of capital into stablecoins. “Every stock, every bond, every fund—every asset—can be tokenized,” Larry Fink, cofounder and CEO of BlackRock, said in his 2025 letter to investors.
Aleo's cofounder, Wu, has observed considerable demand for privacy-focused stablecoins from various prospective clients, such as crypto payroll services Request Finance and Toku. He further noted that prediction markets, which are platforms for wagering on actual occurrences and athletic contests, are also keen to explore stablecoins like USDCx.
Aleo, a company focused on confidential blockchain dealings, is not the sole privacy-oriented innovation of its nature within the cryptocurrency sphere. Other digital currencies exist, notably Zcash, which also offer users the assurance of protected transactions. Nevertheless, these digital assets experience greater price fluctuations compared to stablecoins, which, as their designation suggests, are engineered to maintain a steady value in relation to the U.S. Dollar or other monetary units.
