Quick Breakdown
- W3i Software plans to launch ShieldUSD, a USD-backed stablecoin focused on privacy-preserving, compliant onchain payments.
- Built on Midnight Network, ShieldUSD uses cryptography to balance transaction confidentiality with regulatory oversight.
- The stablecoin targets institutional use cases, including payroll, B2B settlements, and regulated DeFi.
W3i Software has announced plans to develop ShieldUSD, a privacy-preserving, US dollar-backed stablecoin designed for deployment on the Midnight Network, marking a new push toward confidential yet compliant onchain payments. The stablecoin will be co-issued by Moneta Digital LLC and Norwegian Block Exchange (NBX), combining regulated issuance with privacy-first blockchain infrastructure.
ShieldUSD is positioned to support real-world financial use cases such as payroll, business-to-business settlements, and institutional decentralized finance, where transaction confidentiality is critical. The project aims to address a growing gap in the stablecoin market, as institutions increasingly seek privacy without sacrificing auditability or regulatory oversight.
Midnight 🤝 @W3iSoftware
The Midnight ecosystem is expanding with @Shield_USD, a privacy-preserving USD stablecoin being built by W3i Software for the Midnight Network.
ShieldUSD is designed to support real-world payments and financial workflows—such as payroll, B2B… pic.twitter.com/dM9tXmdF4x
— Midnight (@MidnightNtwrk) January 8, 2026
Privacy-first design meets regulatory compliance
ShieldUSD is being built to leverage Midnight’s “rational privacy” architecture, which uses cryptographic techniques to keep sensitive transaction details private by default while still allowing selective disclosure when required. This enables users and institutions to prove compliance, such as transaction validity or regulatory adherence, without exposing commercial data or personal information on a public ledger.
Unlike most existing stablecoins that prioritize transparency at the cost of confidentiality, ShieldUSD is designed to balance privacy and oversight. Transactions can remain shielded, while regulators and authorized parties retain the ability to verify activity through cryptographic proofs rather than open data access.
Co-issuance model and ecosystem integration
The stablecoin will follow a co-issuance structure already used by Moneta Digital and NBX in previous projects, supporting cross-jurisdictional compliance across multiple regulatory environments. W3i Software will provide the underlying technology stack, integrations, and implementation support, positioning ShieldUSD as a core financial primitive within the Midnight ecosystem.
As a partner chain to Cardano, Midnight inherits Cardano’s security and decentralization while introducing zero-knowledge-based privacy features tailored for enterprise and institutional use. With ShieldUSD, builders and financial institutions gain access to a digital dollar optimized for confidential payments, regulated finance, and programmable onchain workflows.
The launch of ShieldUSD comes as governments and institutions increasingly explore regulated digital dollars, following recent moves such as Wyoming’s rollout of a state-issued stablecoin in the United States.
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