Circle launches "private" stablecoin to meet bank standards

Source: CritpoTendencia Original Title: Circle launches “private” stablecoin to meet banking standards Original Link: The crypto giant, Circle, has launched a relatively private version of its USDC stablecoin to meet banking service requirements. Generally, bank customers do not feel comfortable with their funds and business activities being visible to third parties.

One of the most notable features of blockchain is its transparency, which complicates commercial operations for those requiring confidentiality.

To meet these privacy standards, Circle announced the creation of a new variant of its main stable token. Thus, USDCx was born, launched on the Aleo blockchain and specifically designed for banking institution clients.

This token on Aleo conceals or obscures transaction history, preventing external tracking and observation of movements. Digital currencies with higher privacy are not new in the market, but this is the first time a private stablecoin focused directly on the banking sector has been developed.

People do not want to reveal their business income. They do not want to disclose their operational information. But the way transparent blockchains currently operate unfortunately means that every time you make a transaction, you are leaking that data

— Howard Wu, CEO of Aleo

Based on this premise, Circle introduced a new version of its stablecoin in collaboration with the Aleo chain.

The new version of Circle’s stablecoin is not 100% private

As mentioned, this new version of Circle’s stablecoin does not offer full privacy. According to Wu, each transaction with USDCx is recorded in what he calls a compliance ledger.

Circle can access this ledger if authorities request specific information about certain fund movements. However, for the general public, transactions will remain as fragmented data impossible to interpret. It is a model similar to handling money in traditional bank accounts: private for the public, accessible to the bank and regulators when appropriate.

Wu points out that this constitutes a specific level of banking privacy, which should not be confused with absolute privacy. Thus, Circle is taking an important step in its strategy to position its stablecoin among major financial institutions. For months, stablecoin issuers have been seeking to establish their tokens as the preferred option for banks.

With this initiative, Circle seems to gain an advantage. Bank privacy stablecoins could experience strong demand in 2026, facilitating the expansion of the crypto ecosystem toward broader adoption.

Wu added that, in addition to banks, sectors like the prediction market have also shown interest in proposals like USDCx.