Circle tests privacy-preserving wrapped version of USDC on Aleo

Circle is collaborating with the Layer 1 network Aleo to test USDCx, a privacy-preserving wrapped version of its USDC stablecoin. Unlike fully anonymous transactions, USDCx will offer "bank-level privacy" with configurable compliance, making it suitable for corporate uses like global payroll and remittances. The asset is fully backed by traditional USDC held in Circle's xReserve infrastructure. This pilot is running on the Aleo testnet, which utilizes zkSNARKS to encrypt traffic. Circle's Chief Commercial Officer, Kash Razzaghi, stated that this launch strengthens the foundation for global stablecoin use by pairing reserve assets with on-chain visibility and privacy. Aleo launched its mainnet in September 2024 after years of development rooted in research exploring native smart contracts on chains like Zcash.

(Source：The Block)