Circle has unveiled USDCx, a new stablecoin developed in partnership with Aleo, designed to offer enhanced transaction confidentiality for businesses. Backed by USDC and fully interoperable with it, USDCx aims to maintain regulatory compliance while providing 'bank-level privacy.' The stablecoin launched on Aleo's testnet through Circle's xReserve infrastructure, which supports the issuance of programmable, reserve-backed digital currencies. USDCx is not entirely private but includes a 'compliance log' that can be accessed by Circle and authorities if necessary. This feature ensures that while transactions remain confidential, they are still subject to regulatory oversight. The project is currently in its testing phase, focusing on enabling business use cases like payroll and treasury management with confidentiality that aligns with audit requirements.