Circle partners with Aleo to launch privacy stablecoin "USDCx", transaction records and wallet addresses are all invisible
Circle, the issuer of the U.S. dollar stablecoin USDC, announced that it has reached a cooperation with the zero-knowledge proof (ZK) public chain Aleo. The two parties have launched a new privacy-enhanced stablecoin "USDCx" on the Aleo test network, claiming to have "bank-level privacy."
(Previous summary: Circle released Q3 financial report: revenue surged 66%, net profit doubled to US$214 million, USDC market value exceeded US$73.7 billion)
(Background supplement: Circle’s own public chain Arc early interactive teaching, 11 projects have been launched on the test network)
Contents of this article
USD stable currency USDC issuer Circle It was officially announced today (9th) that it has reached a cooperation with the zero-knowledge proof (ZK) public chain Aleo, and both parties have launched a new privacy-enhanced stablecoin "USDCx" on the Aleo testnet. This stablecoin claims to have "bank-level privacy": the general public cannot see any transaction records and amounts, but it can retain complete compliance information for regulatory review, achieving a balance between "privacy" and compliance.
Aleo has launched USDCx on Aleo Testnet via Circle xReserve, a USDC-backed stablecoin for its privacy-first blockchain infrastructure.
USDCx on @AleoHQ enables a range of use cases including global payroll, critical aid distribution, global e-commerce, P2P payments &… pic.twitter.com/4fVzwUgu9z
— Circle (@circle) December 9, 2025
USDCx four core features
According to the official announcement, USDCx has the following four features:
100% Fully reserved by regular USDC
USDCx is not a newly issued token, but is anchored 1:1 through Circle's newly launched non-custodial infrastructure "xReserve". After users deposit USDC, they can mint equivalent USDCx on Aleo. The reserve is officially responsible for the entire process, and the transparency and security are exactly the same as native USDC.
True "end-to-end" privacy protection
Thanks to Aleo's zero-knowledge proof technology, USDCx's transfer amount, addresses of both parties to the transaction, and even historical records are completely invisible to the blockchain browser and the outside world. Only the payer and payee themselves can see the complete details, a level of privacy that Circle and Aleo call “as natural as cash, but faster and more global.”
No need for third-party bridging, direct interoperability with mainstream chain USDC
Through Circle Gateway and CCTP (cross-chain transfer protocol), USDCx can be seamlessly exchanged and transferred with native USDC on more than ten mainstream blockchains such as Ethereum, Solana, Polygon, etc., completely independent of traditional cross-chain bridges, and security is greatly improved.
Configurable compliance capabilities: Regulations are visible, users don’t have to be afraid
Aleo’s zero-knowledge architecture allows users or institutions to cryptographically prove “I comply with regulations” to regulatory agencies when necessary, without having to disclose any sensitive information, to meet increasingly stringent global regulatory requirements such as EU MiCA.
Six major application scenarios are simultaneously exposed
Circle and Aleo particularly emphasized that USDCx will open up scenarios that were difficult to achieve in the past, including:
- Confidential payment of corporate global salaries
- Safe and direct delivery of humanitarian aid to war-torn areas
- E-commerce platforms protect commercial pricing and consumer shopping privacy
- Cross-border remittances do not expose personal wealth tracks
- DeFi The project finally has a "real privacy dollar railway"
- Institution-level configurable compliance tools
Currently USDCx has been officially launched on the Aleo testnet, and the mainnet version is expected to be launched in 2026. As the demand for privacy continues to heat up around the world, whether this stablecoin, which combines Circle's compliance advantages and Aleo's privacy technology, can become the next tens of billions of dollars, or even hundreds of billions of dollars in star assets, deserves our continued attention.
