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Circle has introduced privacy into its stablecoin business through a partnership with Aleo, a privacy-focused layer-1 blockchain built using zero-knowledge proofs. The duo has launched a stablecoin, USDCx, to bring privacy to institutions such as banks.
The blockchain is natively designed to make transactions transparent to everyone. However, banks and various companies have clients who would not want their account balance and history open to the public. Circle’s USDCx seeks to make such firms comfortable with blockchain technology by adding a layer of privacy.
USDCx is fully backed by Circle’s flagship stablecoin, USDC. In its latest announcement, Circle disclosed that the privacy-focused stablecoin is now live on the Aleo Testnet. Notwithstanding, USDCx is interoperable with USDC across supported blockchain networks without the need for third-party on-chain bridges.
Explaining how USDCx works, Aleo’s co-founder, Howard Wu, said that transactions involving the stablecoin will not be truly private. He stated that each transaction would have what he called a “compliance record” that is accessible to Circle in cases where government authorities request details about specific transactions.
However, these transactions will appear “unintelligible” and resemble “blobs of data” to public users viewing the blockchain’s transaction log. In his words, this initiative is “banking-level privacy, as opposed to ‘privacy privacy.’”
Circle highlighted various use cases that USDCx can offer for businesses globally. They include being used for workers’ payroll, critical aid distribution without putting recipients at risk, e-commerce payments, P2P payments, decentralized finance (DeFi), and more.
This year alone, the stablecoin issuer has launched various tools and features to enhance its business. For instance, it secured a public listing in the United States months ago.
In August, Circle introduced its native blockchain, Arc. In September, it began exploring the possibility of enabling crypto transaction reversals to enhance security. Last month, the USDC issuer revealed that it would launch a native cryptocurrency for the Arc Network.
Currently, Circle’s USDC is the dominant stablecoin on the Solana blockchain. These feats have rubbed off on Circle’s stock, CRCL. According to Google Finance, it trades at $86.54, up 3% over the past 24 hours.
The post Circle Launches Privacy-Focused Stablecoin Dubbed USDCx on Aleo Blockchain appeared first on CoinTab News.
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