What is USDCx on Aleo (USDCx)?
USDCx is a dollar stablecoin on Aleo, the zero-knowledge layer-1 network, backed one-for-one by USDC held in Circle xReserve. It is not native USDC: Circle issues USDC, while USDCx is a USDC-backed token that Aleo launched using xReserve. It went live on testnet in December 2025 and on mainnet in January 2026.
- Type
- USDC-backed private stablecoin
- Launched
- 2026
- Consensus
- Runs on Aleo
- Max supply
- No fixed cap (1:1 USDC-backed)
- Swap network
- Aleo
How USDCx on Aleo works
To mint, a user deposits USDC into the xReserve contract on Ethereum or Arc; Circle attests the deposit and the Aleo bridge program mints USDCx. Burning USDCx on Aleo releases USDC on those chains. On Aleo, sender, receiver and amount are encrypted by default, but private transfers also create a compliance record for a designated address, and a freeze list blocks sanctioned addresses.
What USDCx is used for
Aleo and Circle position USDCx for payroll, vendor payments, remittances, aid distribution and DeFi, where people want dollar settlement without publishing balances and counterparties. Launch partners included the payroll provider Toku.
USDCx supply
There is no fixed cap. Supply rises when USDC is locked in xReserve and falls when USDCx is burned to withdraw it, keeping a 1:1 link with the USDC in reserve.
Before you swap USDCx
USDCx is delivered on Aleo, so you need an Aleo wallet such as Shield and a little ALEO for fees. Its privacy features only apply on Aleo; USDCx on Movement is a separate token. It targets the US dollar, so swaps from USDC or USDT should price close to parity.