Circle has launched a privacy-focused stablecoin, USDCx, on the Aleo blockchain to serve institutional demand for confidential transfers. According to an Aleo report, private stablecoin settlements represent less than 1% of the $1.22 trillion in institutional transfers over the past 24 months, indicating significant potential for growth in this emerging sector.
Circle, the issuer of the USDC stablecoin, has unveiled USDCx, a new asset designed for the privacy-first blockchain Aleo. The company stated the move enables “privacy-preserving payments, interoperable onchain dollars, and confidential multi-party workflows” for businesses and users.
New payment blockchains like Coinbase-backed Base and Stripe‘s Tempo are similarly emphasizing selective disclosure features. The crypto payment platform Zebec Network called privacy a feature, not a tradeoff, in response to the announcement.
Institutional stablecoin transfers totaled $1.22 trillion over the past 24 months, according to an Aleo report. Private settlement accounted for just $624.4 million of that volume, indicating slow adoption but substantial upside potential.
Public blockchain transparency presents risks like targeted kidnappings for perceived on-chain wealth and accusations of market manipulation. The report notes that early adoption of privacy platforms like EY Nightfall on Ethereum has reached 2-5%, reinforcing a growing institutional demand.
