W3i Software Moves to Bring Privacy-First Stablecoins to Midnight With ShieldUSD

 

As the stablecoin market matures, a growing number of projects are focusing on what many see as the next missing piece of on-chain finance: privacy that works alongside regulation, not against it.

That is the direction W3i Software is taking with ShieldUSD, a USD-pegged stablecoin being built for the Midnight Network, a privacy-focused blockchain designed for confidential smart contracts and selective disclosure.

The project aims to deliver a digital dollar that preserves transactional privacy while remaining compatible with compliance and audit requirements, a balance that has proven difficult for most stablecoin models to strike.

 

A Stablecoin Designed for Real-World Privacy

ShieldUSD is being developed by W3i Software in collaboration with Moneta Digital and Norwegian Block Exchange (NBX), combining regulated issuance with Midnight’s privacy-native infrastructure.

Unlike most dollar-backed stablecoins, which expose transaction details publicly on chain, ShieldUSD is designed to allow users to transact confidentially by default. Sensitive information such as counterparties, amounts, or transaction logic can remain private, while still allowing selective disclosure when required for regulatory, legal, or audit purposes.

For many businesses and institutions, that distinction matters. Public blockchains have made settlement faster and more programmable, but the lack of confidentiality has limited adoption in areas like payroll, supplier payments, and enterprise finance. ShieldUSD is explicitly targeting those gaps.

 

Building on Midnight’s Privacy-Native Architecture

ShieldUSD is being built specifically for the Midnight Network, a Layer 1 blockchain developed to support privacy-preserving applications from the ground up. Midnight uses advanced cryptographic techniques to enable confidential transactions and smart contracts without sacrificing verifiability or compliance.

That design allows developers to define what data is private, what is shareable, and with whom. Rather than forcing transparency or secrecy across the board, Midnight supports selective disclosure as a native feature.

ShieldUSD fits naturally into that model. It is intended to function as a settlement asset that can move privately within applications, while still offering the assurances needed by regulators, auditors, and institutional counterparties.

 

W3i’s Experience With Regulated Stablecoins

W3i Software brings prior experience to the project through its work on USDM, a regulated fiat-backed stablecoin in the Cardano ecosystem. That background has shaped ShieldUSD’s approach, particularly around compliance, custody, and reserve transparency.

By pairing that experience with Midnight’s privacy infrastructure, the project aims to show that privacy-preserving finance does not need to exist in tension with regulation. Instead, it can be engineered to support it.

 

A Broader Shift in Stablecoin Design

ShieldUSD arrives amid a broader rethinking of how stablecoins should function as they move deeper into mainstream finance. While transparency has been a core feature of early stablecoins, it has also created unintended consequences, including transaction surveillance and data leakage that make certain use cases impractical.

As AI agents, automated trading systems, and on-chain business logic become more common, privacy is increasingly viewed as a functional requirement rather than a philosophical preference. Midnight’s architecture reflects that shift, positioning privacy as infrastructure rather than an add-on.

ShieldUSD is one of the first stablecoin projects explicitly designed around that premise.

 

Momentum Around the Midnight Ecosystem

The announcement also adds momentum to the Midnight Network more broadly, which has been steadily building toward mainnet readiness with a focus on regulated, privacy-aware applications. The presence of a native, privacy-preserving dollar stablecoin strengthens Midnight’s value proposition as a settlement layer for real-world finance.

While ShieldUSD will still need to build liquidity and adoption in a competitive stablecoin market, its design aligns closely with the needs of enterprises and institutions that have largely remained on the sidelines of public blockchains.

 

What to Expect next

Challenges remain. Privacy-preserving systems are more complex to implement, and regulatory expectations around stablecoins continue to evolve. Still, ShieldUSD represents a clear step toward a more nuanced model of on-chain money, one that treats privacy as compatible with compliance rather than something to be sacrificed.

If successful, ShieldUSD could help demonstrate how stablecoins evolve beyond transparent consumer tokens into serious financial infrastructure, and position Midnight as a network purpose-built for that next phase.

 

For a sector still searching for scalable, privacy-aware settlement tools, ShieldUSD and the Midnight Network offer a direction that many in the industry have been waiting for.

 

Stay Connected

You can stay up to date on all News, Events, and Marketing of Rare Network, including Rare Evo: America’s Premier Blockchain Conference, happening  July 28th-31st, 2026 at The ARIA Resort & Casino, by following our socials on X, LinkedIn, and YouTube.

The Scavenger Mine: Midnight’s Next Big Leap in the Glacier Drop  

Phase Two begins October 29, unlocking a new era of participation for the Midnight community  

The Midnight Network is entering an exciting new chapter with the launch of The Scavenger Mine, the second phase of its ambitious Glacier Drop initiative. This phase, beginning October 29, invites the global community to actively participate in earning NIGHT tokens while helping build the foundation of Midnight’s privacy-first ecosystem.

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The Glacier Drop: Setting the Stage

The Glacier Drop was created as a fair and inclusive way to distribute NIGHT, Midnight’s native token. Instead of relying on early access or venture funding, Midnight has focused on rewarding community members across multiple blockchain ecosystems: Cardano, Bitcoin, Ethereum, Solana, Avalanche, and others.

Phase One of the Glacier Drop successfully introduced NIGHT to the world, with thousands of participants claiming tokens based on their wallet holdings and community engagement. This initial phase not only spread awareness of Midnight’s vision but also demonstrated the team’s commitment to equitable token distribution and transparency.

With the first phase complete, Midnight is now turning up the excitement with a more interactive experience that brings everyone into the fold, whether you claimed in Phase One or not.

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Introducing the Scavenger Mine

The Scavenger Mine is the next evolution of the Glacier Drop. It transforms the process from a simple token claim into a gamified, hands-on experience. Participants can join from anywhere, complete unique on-chain tasks, and earn NIGHT tokens through engagement, discovery, and contribution.

This phase is not about mining with expensive hardware or competing with massive operations. It is designed for accessibility and creativity. Midnight wants to empower anyone, from crypto veterans to newcomers, to take part in building its ecosystem.

Each day, new opportunities will open to explore, learn, and earn. The Scavenger Mine takes the remaining unclaimed NIGHT from the first phase and redistributes it over 30 days, rewarding active participation and community involvement.

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How It Works

1. Get Ready: The Scavenger Mine begins October 29. Head to midnight.gd to check for updates and instructions.

2. Join the Hunt: Once the phase starts, participants can complete daily challenges, puzzles, and tasks related to Midnight’s ecosystem.

3. Earn NIGHT: Rewards are distributed daily across participants who complete the activities, the network reserve, and the ecosystem treasury.

4. Thaw Schedule: Just like Phase One, claimed NIGHT tokens unlock gradually over time, aligning rewards with long-term commitment to the network.

This model ensures fairness, keeps the community engaged, and creates a sustainable way to grow the Midnight ecosystem organically.

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Why the Scavenger Mine Matters

The Scavenger Mine is more than a distribution event. It represents the core of Midnight’s philosophy: empowering participation, protecting privacy, and building technology that serves people, not gatekeepers.

• Inclusivity: Anyone can join. You don’t need to be an early holder or have advanced technical skills.

• Engagement: Midnight is rewarding curiosity, creativity, and collaboration, not just capital.

• Network Growth: Each task helps test, strengthen, and expand the network, making participants a real part of its evolution.

• Fairness: The Scavenger Mine redistributes unclaimed NIGHT in a transparent, community-driven way.

Midnight is proving that blockchain innovation can be both accessible and meaningful. It is not about speculation; it is about participation and purpose.

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What to Expect

Once the Scavenger Mine launches, you can expect:

• Daily opportunities to claim NIGHT through new tasks and challenges.

• Community interaction across social platforms as participants share progress, insights, and tips.

• Network engagement as Midnight continues to test features and integrations leading up to its mainnet milestones.

• Continued updates from the Midnight team about upcoming ecosystem expansions and partnerships.

The event will run for approximately 30 days, making late October through November a pivotal period for the Midnight community.

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Looking Ahead

Midnight is redefining how blockchain participation feels. Instead of passive airdrops or token giveaways, the project is introducing meaningful, interactive engagement that aligns with its privacy-first mission.

The Scavenger Mine is a celebration of what makes Web3 exciting: collaboration, discovery, and innovation driven by community energy.

If you missed the first phase of the Glacier Drop, this is your moment to get involved. Prepare your wallets, follow official updates, and join thousands of others ready to dig into the Scavenger Mine.

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Final Thoughts

The launch of the Scavenger Mine marks a turning point for the Midnight Network. It blends gamified participation with real utility, ensuring that those who help build the ecosystem share in its growth.

With the event beginning October 29, Midnight is proving that blockchain development can be both secure and inclusive, a movement that rewards exploration and empowers every participant to be part of something bigger.

 

The glacier has started to move, and now it is time to dig deeper. The Scavenger Mine is waiting.

 

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Stay Connected

You can stay up to date on all News, Events, and Marketing of Rare Network, including Rare Evo: America’s Premier Blockchain Conference, happening  July 28th-31st, 2026 at The ARIA Resort & Casino, by following our socials on X, LinkedIn, and YouTube.