Taurus Launches Privacy-Focused Stablecoin on Aztec Network

Taurus, a digital asset infrastructure provider, has launched a privacy-focused stablecoin contract on the Aztec Network. This innovation is designed to offer users enhanced privacy through zero-knowledge proofs while maintaining compliance with regulatory standards. The contract aims to make stablecoin usage more practical for sensitive applications such as payrolls and intra-company transfers, where financial privacy is critical. Taurus has previously partnered with major institutions like Deutsche Bank and State Street, and believes this innovation bridges a long-standing gap in stablecoin functionality by preserving privacy without compromising regulatory oversight.

According to Taurus’ chief security officer, JP Aumasson, the solution allows for untraceable transactions that still permit access for authorized entities like issuers and regulators. This dual approach could resolve one of the key limitations of current stablecoin usage—the visibility and permanence of transactions on public blockchains. Aztec Network executive Arnaud Schenk explained that their layer-2 zero-knowledge system supports both user privacy and issuer-defined controls directly at the token level.

The new offering comes at a time when concerns over increasing government oversight have led to speculation that demand may grow for so-called “dark stablecoins”—privacy-enhanced, censorship-resistant alternatives. However, Taurus’ contract may serve as a middle ground by delivering similar privacy protections without the legal uncertainties that accompany unregulated dark stablecoins.

Overall, the stablecoin market is attracting more attention from both traditional financial players and regulators. While USDT and USDC still dominate the market, more than 30 other stablecoin issuers have at least $100 million in circulation. The landscape is poised for even more growth as the GENIUS Act moves closer to becoming law in the United States.

Meanwhile, Europe recently signaled a more accommodating approach under its MiCA framework, which suggests that stablecoin innovation could continue to grow across multiple jurisdictions. The European Commission took a turn away from the strict warnings that were issued earlier this year by the European Central Bank (ECB). In response to ECB concerns about the risks of joint stablecoin issuance across EU and non-EU jurisdictions, the Commission said such scenarios are “highly unlikely.” According to a spokesperson, even if a bank run occurred, most redemptions would take place outside of the EU, particularly in the US, where the majority of stablecoins circulate and reserves are held.

This more flexible approach has been welcomed by the crypto industry, with some calling it a big win for cross-border stablecoin operations. The ECB warned in April that allowing joint issuance between EU and foreign entities could undermine the bloc’s financial safeguards, destabilize consumer protections, and open the door for regulatory arbitrage by foreign firms. It also raised the issue of non-EU issuers potentially misrepresenting themselves as compliant with the EU’s MiCA regulation without actually meeting its requirements.

Despite these concerns, the Commission's June study on the topic concluded that the risks are very manageable under existing rules. It found that MiCA already creates strong institutional and regulatory barriers that limit the presence of foreign stablecoins in the eurozone. For instance, the Commission pointed out Tether’s refusal to comply with MiCA’s rule requiring 60% of reserves to be held in European banks, which discouraged the issuer of USDT from registering in Europe.

The Commission also proposed that foreign stablecoin issuers could be subject to rebalancing mechanisms to align the volume of EU-based reserves with the proportion of tokens circulating in the EU. This stance eliminates the need for issuers like Circle to split their operations into separate entities for the US and Europe, which preserves the fungibility and cross-border usability that are core to blockchain-based currencies.

World Liberty Financial, the crypto venture associated with a prominent political figure, is preparing to release an audit of its stablecoin and hinted at a potential upgrade to its WLFI governance token. Co-founder Zak Folkman announced at a conference that the project's first attestation report from an independent accounting firm will be published on its website soon. He also teased a big development regarding the WLFI token, which currently grants voting rights but is still nontransferable.

Folkman suggested that changes to WLFI are imminent, and encouraged the community to stay tuned over the next few weeks for updates. This was later confirmed in a post on X by World Liberty Financial, where the team acknowledged community demand for making WLFI transferable and stated that the necessary work is underway, promising “big news coming soon.” The platform is also working on launching a new app that is aimed at improving accessibility for retail users. This is a strategic move that could expand its user base during the upcoming election cycle.