rewrite this title DJED Becomes Open Source, Paving The Way For The World’s First Multi-Chain Private Stablecoin

by
Alisa Davidson

Published: August 08, 2025 at 10:00 am Updated: August 08, 2025 at 4:18 am

by Ana

Edited and fact-checked:
August 08, 2025 at 10:00 am

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Web3 privacy-focused platform COTI announced the launch of the next phase of DJED, an algorithmic stablecoin developed on the Cardano blockchain. DJED was first introduced by COTI in collaboration with Input Output Global (IOG), the organization behind Cardano, in 2023. Since its launch, DJED has demonstrated resilience, establishing itself as one of the most robust stablecoins in the market. The latest update introduces three advancements that redefine DJED as a new type of digital asset, opening the door to a broader range of use cases and reinforcing its role as foundational infrastructure for Web3.

DJED has maintained a stable peg since its launch, surpassing other stablecoins in reliability and establishing itself as one of the most resilient options available. COTI is now making essential components of the DJED infrastructure—such as the order API, chain indexer, and frontend—open source to enable developers and communities to build on and expand its ecosystem. This will allow developers to create custom interfaces for DJED, incorporate its features into wallets or decentralized applications (dApps), and operate backend services that securely interact with the stablecoin.

“Open sourcing DJED gives Cardano developers the ability to inspect, extend, and build directly on the protocol with transparency, driving faster innovation and deeper trust,” said IOG in a written statement. “This is a complex system engineered for uniquely high assurance: it’s grounded in formal methods, backed by very thorough testing, and has been running reliably on mainnet for 2.5 years,” the firm added.

DJED: A Privacy-Preserving Stablecoin For Cardano, COTI, And Midnight

COTI plans to launch Private DJED, the first enterprise-ready private stablecoin designed for use across multiple blockchains. Alongside the open sourcing of DJED, COTI will introduce a wrapped version of DJED within its own blockchain ecosystem. This platform provides an effective environment for Private DJED, offering significant advantages for enterprises, institutions, and users prioritizing privacy. Users will be able to transact with Private DJED confidentially, while COTI’s infrastructure supports its integration into more sophisticated dApps and DeFi processes. Private DJED is intended for use cases including fully private DeFi, supply chain finance, enterprise operations, real-world asset markets, and others. The privacy features are enabled by COTI’s layer, which utilizes garbled circuits to provide fast, efficient, and scalable privacy, positioning DJED as a privacy-centric financial tool capable of operating with both speed and scale.

COTI plans to introduce a confidential version of DJED on the Cardano blockchain, utilizing its privacy-on-demand features to provide users with comprehensive privacy without leaving the native Cardano network. While Cardano currently hosts DJED’s native stable asset infrastructure, Private DJED aims to prepare this foundation for broader adoption by allowing users to control when, how, and with whom sensitive transaction information is shared. This includes enabling private sending and receiving of DJED, keeping transaction details such as amounts and wallet addresses restricted to selected parties, and maintaining compliance alongside on-chain privacy.

Additionally, COTI will deploy a wrapped version of Private DJED on Midnight, a privacy-focused sidechain developed for Cardano. Midnight’s confidential smart contracts make it well-suited for privacy-first applications. By introducing a stable, compliant, and privacy-preserving asset, COTI supports secure, shielded stablecoin transfers within the Midnight ecosystem, catering to institutions, enterprises, and users focused on privacy. Midnight is designed for interoperability and operates as a purpose-built sidechain within the Cardano ecosystem, facilitating interaction with multiple blockchains including Solana, XRP, and Avalanche. Through Private DJED, COTI is expanding DJED from a single-chain stablecoin into a privacy-enabled stablecoin that supports multi-chain activity across Midnight’s diverse user base.

DJED will become the first stablecoin to offer native privacy support across multiple blockchains and privacy layers, establishing a foundation for both open and private financial applications. This development extends beyond infrastructure to ecosystem growth, with Cardano hosting approximately one million active users and hundreds of projects, and Midnight reaching an estimated 12 to 18 million users across eight different blockchains. DJED represents one of the first privacy-focused stablecoins with significant institutional and cross-chain capabilities, with COTI serving as the privacy layer that integrates these networks.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles