USDCx Brings Private Transactions to Public Blockchains

Crypto News

USDCx Brings Confidential Transactions to Public Blockchains

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 10, 2025

Key Takeaways

Circle and Aleo launched USDCx, a privacy-preserving stablecoin that hides transaction data while maintaining compliance access;
USDCx uses Aleo’s zero-knowledge tech to keep payments confidential but still verifiable for regulators when needed;
The privacy-backed stablecoin could attract banks and enterprises to blockchain payments, especially for payroll and aid transfers.

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USDCx Brings Confidential Transactions to Public Blockchains

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Circle has introduced a privacy-focused version of its stablecoin, USDCx, in collaboration with Aleo, a blockchain platform focused on privacy.

This partnership addresses the concerns of financial institutions that typically hesitate to use public blockchains because anyone can see transaction information.

Even though transaction details are hidden, Circle can create a compliance record and share it with regulators or law enforcement upon an official request.

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Many companies avoid blockchain payments because all transaction records are made public. By hiding this information and offering a way to produce logs for compliance, USDCx could encourage more businesses and banks to use digital dollar payments on public chains.

The system combines Aleo's privacy tools with Circle's regulated stablecoin framework. Every USDCx token is backed one-to-one by standard USDC USDC $0.9998 held on Circle's xReserve platform, which provides added trust while enabling greater privacy.

The project update was announced for December 9, 2025, when the test network launched. Developers have the opportunity to explore and build privacy-focused products that could help areas such as payroll and aid distribution.

Aleo's network uses zero-knowledge technology to keep payments and sender addresses private, while still allowing required oversight when needed.

Enterprises handling sensitive transactions, such as delivering humanitarian funds or making cross-border salaries, are among those most likely to benefit from this added privacy.

Sony Bank, the digital arm of Sony Financial Group, recently announced plans to introduce a new payment option that uses blockchain technology. What is it? Read the full story.