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FUSD stablecoin is the first fully private USD-pegged asset on Zano. Learn how it works, its features, and why it leads the future of private
Author: Chirag Sharma
Published On: Sun, 16 Nov 2025 19:41:40 GMT
Stablecoins have quietly become the backbone of the crypto economy. They settle trillions each year, power global remittances, offer safe parking for profits, and form the base liquidity for most DeFi protocols. Yet for all this progress, there is one major flaw most stablecoins have never solved. They are not private. USDT, USDC, and almost every major stablecoin run on transparent blockchains. We needed a stablecoin that gives privacy, preserves freedom, and still maintains a predictable value close to one US dollar. That stablecoin now exists. It is called the FUSD stablecoin, also known as the Freedom Dollar, and it is built on the fully private Zano blockchain.
Anyone can track your spending, monitor your activity, and map your financial life with a single wallet address. To make things worse, centralized issuers can freeze accounts, blacklist funds, demand KYC, and share data with governments or companies. The world has been waiting for a stablecoin that finally puts users in control.
In this article you will learn exactly how fUSD works, why it is unique, how it maintains its peg, what makes it an important step in the evolution of digital money, and why 2025 marks the rise of private stablecoins.
The FUSD stablecoin launched on May 1, 2025, as the world’s first USD-pegged stablecoin with mandatory privacy at the protocol level. It hides sender information, receiver information, transaction amounts with no switch to turn privacy on or off. Everything is private by default.
The idea behind fUSD is simple. Offer all the benefits of stablecoins while avoiding the problems that come with centralized issuers. Traditional stablecoins require users to trust a company. They rely on redeemability, regulations, and banking partners. They also sit on public ledgers, which exposes every transaction for the world to see.
The FUSD stablecoin solves this through cryptography instead of corporate policies. Instead of trusting a company, you trust math, open-source code, and fully collateralized reserves.
As of November 2025, the fUSD stablecoin trades near one dollar per token, moves roughly two hundred and eighty thousand dollars per day, and continues to grow through integrations with Bitcoin.com Wallet, MEXC, Biconomy, Swapter, and merchant tools and not backed by VC money or controlled by a foundation. Users mint it and redeem it directly on-chain.
The birth of the FUSD stablecoin is linked directly to the evolution of Zano. It began in 2014 under the Boolberry project and rebranded to Zano in 2019 with a mission to create a powerful privacy-focused Layer 1 blockchain.
For years, Zano worked on adding private assets, mixing systems, and confidential transactions. The breakthrough arrived in 2024 with the Zarcanum hard fork, which introduced Confidential Assets. This allowed Zano to issue tokens that inherit the exact same privacy protection as its native currency.
That change opened the door for a private stablecoin. Work on fUSD began soon after the upgrade. Development took place in the open, without outside investors or centralized issuers. The fUSD smart contract was deployed on May 1, 2025, and its asset ID is permanently recorded on-chain.
Since then, the FUSD stablecoin has become one of the fastest growing components of the Zano ecosystem. In June 2025 Bitcoin.com added support with private swaps and a one million dollar rewards campaign. FUSD is accepted by more than one hundred European stores through OpenCryptoPay and worked with Zebec Mastercard for real world spending.
The most impressive part of fUSD’s growth is that it has no marketing team or commercial sponsor. It grows because the product works and the community pushes adoption.
Unlike centralized stablecoins, the FUSD stablecoin does not rely on banks or compliance partners. It is backed by over-collateralized ZANO deposited into an autonomous smart contract. The initial collateralization rate exceeds one thousand percent to buffer against volatility. Users maintain direct control because the contract is immutable and has no administrative keys.
Users mint fUSD by depositing ZANO. The collateral sits in public on-chain addresses that anyone can audit. The contract issues the correct amount of fUSD in return.
Users burn fUSD to unlock the corresponding amount of ZANO. This ensures that fUSD always has direct redeemability into the underlying asset.
The fUSD stablecoin stays close to one dollar through algorithmic market making. A protocol-integrated bot swaps between ZANO and fUSD on ZanoTrade at a dollar equivalence. When the price drifts, the market maker rebalances liquidity and absorbs pressure. The reserves constantly grows the collateral buffer and also staked inside Zano’s Proof-of-Stake system, which .
Every transaction uses ring signatures, stealth addresses, and confidential transaction proofs. This is the same family of cryptography that ensures anonymity in privacy coins, but now applied to a stable dollar. To an outside observer, all transfers look identical. There are no visible wallet balances or transaction traces.
Zano runs a hybrid consensus model that combines Proof-of-Work with Proof-of-Stake. This forces attackers to control both hash power and stake, which dramatically increases security. Transaction fees are paid in ZANO and burned, which gradually reduces supply.
Overall, the FUSD stablecoin operates like digital cash. It is simple, privacy preserving, and entirely independent of traditional financial intermediaries.
FUSD does not have a CEO, a board, or an ownership structure. It exists purely as code on the Zano blockchain.
The Zano core team, led by the pseudonymous developer Andrey Sabelnikov, maintains the base protocol. Sabelnikov helped create the original CryptoNote technology and brings deep experience in cryptographic privacy tools. The broader Zano team includes developers, researchers, and community contributors who build wallets, governance tools, and DEX interfaces.
This decentralized model removes regulatory attack vectors and makes fUSD resistant to censorship. There are no freeze functions or blacklist features. Users hold complete control over their own assets.
Partnerships with Bitcoin.com, Zebec, and various payment platforms expand usability without compromising autonomy. Developers build tools on top of fUSD, but no one governs it.
Several features place fUSD in its own category.
Transaction details are always hidden. This provides financial confidentiality similar to cash.
There is no mechanism to freeze or modify user balances. Companies cannot be pressured to block users.
FUSD is backed by a large reserve of ZANO with collateral levels far above standard requirements.
Anyone with a Zano wallet can mint, redeem, or transact without KYC.
Users can spend fUSD at stores, online merchants, and through debit cards, without revealing personal data.
Private transactions prevent bots from tracking trades or manipulating order flow.
The key advantage is that the FUSD stablecoin brings privacy to stable assets. For the first time, stable value behaves like private digital cash.
The next few years will determine the direction of stablecoins globally. Governments are expanding CBDCs. Regulators are tightening oversight on centralized stablecoins. Privacy rights are being debated across every major financial jurisdiction.
At the same time, users want stable value without surveillance. They want privacy without losing functionality. They want global money without dependency on banks.
The FUSD stablecoin is positioned to serve that exact demand. Analysts expect privacy-preserving stablecoins to gain significant traction in regions affected by capital controls. The growth of private DeFi on Zano will push more use cases, including tokenized assets and private liquidity pools.
Upcoming upgrades in Zano’s Hardfork 6 will boost scalability and add new frameworks for financial tools. As Bitcoin.com and other partners expand support, liquidity and real world utility will continue to rise.
Challenges remain, especially in liquidity depth and collateral volatility. However, the over-collateralization model and staking yields build strong protection over time.
What is clear is that the FUSD stablecoin represents a new direction in stablecoins. It combines the predictability of a pegged asset with the freedom of cryptographic privacy.
This is the stablecoin the privacy community has been waiting for.
