Cardano’s privacy sidechain, Midnight, is preparing to welcome a new privacy-focused stablecoin partner into the ecosystem.
This initially began as speculation within the Cardano community, as users deliberated the possibility of a privacy-focused stablecoin launch on Midnight. The discussion follows a series of social media interactions involving prominent community members and project leaders.
Cardano DRep Hints at Potential Stablecoin Launch on Midnight
In a tweet, Stake With Pride, a Cardano DRep and stake pool operator, shared a screenshot of a Reddit post highlighting a common privacy concern among crypto users. In the post, a user complained that someone they had paid questioned why they were holding a large amount of USDC, as the individual could view their USDC balance online. This example underscores how non-privacy stablecoins can inadvertently expose sensitive financial information.
Sharing the screenshot on X, Stake With Pride stated that Midnight is designed to solve issues like this. In his view, privacy stablecoins would allow users to transact without revealing balances or transaction details.
Midnight ZK stablecoins fix this. #Cardano pic.twitter.com/7kQi0VQaT7
— St₳ke with Pride 🌈 SPO & DRep (@StakeWithPride) December 17, 2025
The post quickly drew the attention of key figures within the Cardano and Midnight communities. Jillian Plomin, CEO of W3i Software and the team behind Cardano’s USDM stablecoin, also joined the conversation. She noted that she already has a solution to address the privacy challenge.
Interestingly, Jason Schober, Head of Marketing at the Midnight Foundation, encouraged users to listen to the latest episode of the Unshielded Podcast featuring Plomin, which aired on December 18.
Sharing these conversations on X, Stake With Pride suggested that a privacy stablecoin may be on its way to Midnight.
A new privacy stablecoin on Midnight? 👀
Tune in to the Unshielded Podcast tomorrow. #Cardano https://t.co/u5L8qXByB2 pic.twitter.com/DvLS9h43Pi
— St₳ke with Pride 🌈 SPO & DRep (@StakeWithPride) December 18, 2025
Midnight Foundation President Confirms Ongoing Stablecoin Deal
The speculation gained further credibility during the podcast itself. Midnight Foundation President Fahmi Syed revealed during the podcast that the project has already received a legal contract from a potential stablecoin partner.
He added that if the agreement is successfully signed, reviewed, and finalized, an official announcement could follow “in the coming days and weeks”. However, he did not disclose the identity of the stablecoin partner.
Midnight Launch and Growing Optimism
The development follows just over a week after the Midnight Foundation listed its NIGHT token for trading across several major crypto exchanges. These include Binance Alpha, OKX, Bybit, Gate.io, KuCoin, MEXC, and Kraken.
Shortly after launch, NIGHT surged past a $1 billion valuation and later peaked at $1.4 billion. At the time of writing, the token is trading at $0.06402, giving it a market capitalization of approximately $1.06 billion.
Notably, while the Midnight native token is already live, the development team is still working through the remaining phases of the project’s rollout, which it expects to complete next year.
As Cardano founder Charles Hoskinson has noted, users should anticipate new Midnight-related goodies every three months. These regular milestones could help the Foundation attract new partners, including one that could deploy a privacy stablecoin on the network.
