Carbon Startup And AZTEC Protocol Sign Partnership To Create A Privacy Stablecoin On Ethereum
The cryptocurrency startup Carbon has signed a partnership with AZTEC Protocol in order to create a new stablecoin on the Ethereum (ETH) network. AZTEC Protocol is a privacy technology development firm that will help Carbon to bring private and stable transactions to the Ethereum network.
Carbon And AZTEC Protocol Create Privacy Stablecoin
Carbon’s CUSD stablecoin will be enhanced with privacy features by leveraging AZTEC’s privacy technology. The new privacy-enabled stablecoin is expected to go live on the Ethereum network as soon as the third quarter of this year.
Sam Trautwein, the CEO of Carbon said that the partnership will be creating the first privacy-wrapped stablecoin that will entirely run on Ethereum. Users will be able to mint a private CUSD coin in a very easy way. They will have to sign up to Carbon and complete a KYC verification process, send a USD transaction to Carbon’s banks and Carbon will be issuing a private CUSD for the client backed 1:1 by the funds transferred by the client.
During a conversation with The Block, Trautwein says that he does no think that there is an answer to whether there are regulatory concerns or not for printing privacy coins. In order to protect users’ transactions, the AZTEC protocol will be using zero-knowledge proofs, a technology currently used by ZCash (ZEC), one of the largest privacy coins in the crypto market.
In order to increase speeds and reduce transaction fees, AZTEC created range proofs, which are more efficient than zero-knowledge proof.
Thomas Pocock, the co-founder of AZTEC, commented about Carbon:
“Carbon has built up considerable expertise at the intersection of cryptocurrencies regulation and money transfer, and we’ve been consistently impressed with the speed and quality of their execution in this challenging area.”
There are many different privacy and stablecoins in the market. Tether (USDT) is the most popular stablecoin in the space, but it has been accused of being involved in market manipulation. Furthermore, there have been some issues with the funds it uses to back the USDTs it created.
Meanwhile, other digital assets such as Monero (XMR) or ZCash can have prices that fluctuate very often. Thus, a stablecoin with privacy features solves some of the problems that the industry currently has.
Back in November 2018, AZTEC was able to raise $2.1 million in a seed round led by ConsenSys Labs.