Cardano (ADA) Founder Charles Hoskinson Announces Plans to Develop a Privacy-Focused Stablecoin

The founder of Cardano, Charles Hoskinson, announced early plans to develop a stablecoin equipped with much better privacy features.

The founder of Cardano, Charles Hoskinson, has revealed early plans to develop a stablecoin with advanced privacy features.

During an appearance on the Conversations with Leaders podcast, Hoskinson expressed his interest in creating a stablecoin that would not display user transactions on the public ledger, a stark contrast to current stablecoins, which prioritize complete transactional visibility for users.

“Most stablecoins out there expose everything that's happening on the blockchain, which may be a turn-off to users who want to enjoy financial privacy. Some customers would prefer discretion in transactions and may not feel comfortable using stablecoins that track and post all details, including recipients and amounts,” he stated.

To address these concerns, Hoskinson introduced the concept of a “selective disclosure and season freeze regime.” This mechanism would filter transaction data from the general public but make it accessible by regulated entities under the provisions of court orders or official directives.

He explained that this structure could integrate privacy considerations for users and regulatory frameworks without compromising the overall integrity of the stablecoin. Furthermore, this initiative is supported by one of the technological pillars: Cardano's sidechain project, Midnight.

Privacy-focused Midnight could be used as the basis for bringing this new-generation stablecoin to life. Integrating Cardano's technology for selective disclosure with Midnight's infrastructure could put the blockchain in the forefront of privacy-preserving financial assets.

While the idea itself is still in the discussion stages, the general environment of the stablecoin market gives this development particular importance. The market has rapidly grown and achieved an overall valuation of more than $245 billion. Superstars such as USDT and USDC control the space and are based predominantly around Ethereum, Solana and Tron.

Cardano is a newcomer in the stablecoin domain. Nonetheless, it already has DJED, USDA, and USDM, with the three boasting a combined market capitalization of just below $32 million, according to DeFiLlama.

Today, the stablecoin transactions for all of the platforms, including Cardano, keep the transactions transparent. However, Hoskinson's suggested model is set to alter that as it presents the users with an alternative that does not infringe on legal oversight while establishing transactional privacy.

The announcement also comes amid regulatory pressures on privacy-driven cryptocurrencies. Such projects, like Monero and Zcash, have faced rejection by major exchange bodies due to concerns over illicit use, while the European Union is introducing new rules that will ban the use of privacy coins and anonymous wallets on regulated exchanges starting July 1, 2027.