DJED Stablecoin Goes Open Source With Privacy Features and Multi-Chain Support

COTI and Input Output Global (IOG) have announced a significant update to DJED, the algorithmic stablecoin co-developed by the two entities. Initially launched in 2023, DJED has demonstrated resilience during market turbulence, maintaining its peg and earning a reputation as a reliable stablecoin. The recent development sees DJED transitioning to an open-source model, offering developers greater access to its infrastructure to foster broader integration and innovation across the blockchain ecosystem [1].

A core part of this initiative includes making the stablecoin's order API, chain indexer, and frontend publicly accessible. This move empowers developers to create custom integrations, frontends, and backend services, effectively lowering the barrier to entry for building applications that leverage DJED. IOG emphasized that open-sourcing DJED provides Cardano developers with the tools to inspect, extend, and build directly on the protocol, fostering faster innovation and trust through transparency [1].

In parallel with this open-access strategy, COTI introduced Private DJED, a privacy-enhanced version of the stablecoin designed for enterprise and institutional use. Built using COTI’s privacy layer that leverages garbled circuits, Private DJED supports shielded transfers and programmable privacy features. These capabilities are intended for integration into more complex decentralized financial (DeFi) systems and enterprise finance applications [1].

Private DJED will initially be available on the COTI blockchain, Cardano, and Midnight — a privacy-focused sidechain of Cardano. This deployment strategy allows the stablecoin to support real-world asset tokenization and private DeFi protocols on COTI, while also enabling selective transaction visibility and compliance on Cardano. Additionally, Midnight will offer multi-chain interoperability, allowing Private DJED to move between blockchains such as Solana, Avalanche, and XRP, facilitating cross-chain private asset transfers [1].

The integration of open-source access with privacy-focused design marks a strategic shift for DJED, positioning it as the first stablecoin to offer native privacy features and multi-chain compatibility simultaneously. This development is expected to support a wide range of applications, from community-driven decentralized applications (dApps) to institutional-grade financial infrastructure, aligning with COTI’s vision for enterprise-grade blockchain solutions [1].

Source: [1] DJED stablecoin goes open source, targets multi-chain future with privacy-first design (https://coincheckup.com/blog/djed-stablecoin-goes-open-source-targets-multi-chain-future-with-privacy-first-design/)