COTI today unveiled a major evolution for DJED, the algorithmic stablecoin originally developed with IOG on Cardano. Launched in 2023, DJED has earned a reputation for reliable peg maintenance; now COTI is pushing it into a new era, open source code, native privacy, and multi-chain deployment, which aims to turn the token from a single-chain instrument into a foundational, privacy-first financial primitive for Web3.
What Changed and Why it Matters
The announcement centers on three big moves. First, COTI is open-sourcing key parts of the DJED infrastructure, specifically the order API, chain indexer, and frontend, so developers and communities can inspect, extend, and build on top of the protocol. That means more custom frontends, wallet and dApp integrations, and self-hosted backend services that interact with DJED securely.
Second, COTI is introducing Private DJED, an enterprise-ready, privacy-preserving stablecoin that will exist across multiple chains. COTI will roll out wrapped DJED inside its own blockchain infrastructure and launch confidential versions both on Cardano (via its privacy layer) and on Midnight, the Cardano-aligned, privacy-focused sidechain.
Third, the Midnight deployment is positioned as the multi-chain bridge: Midnight’s confidential smart contracts and interoperability (support for chains such as Solana, XRP and Avalanche) let Private DJED support private stablecoin flows across ecosystems rather than being locked to one chain.
Open Source for Speed and Trust
COTI and IOG have repeatedly emphasized DJED’s on-chain resilience. Making core components open source is a strategic play to accelerate adoption and build trust, developers can now review the code, fork or extend it, and embed DJED functionality directly inside wallets and dApps.
As IOG put it: “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. 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.”
That level of transparency should help DJED win more integrations and remove a common barrier to institutional adoption: the inability to audit or adapt protocol code to specific compliance or integration needs.
Private DJED, Privacy by Design
Privacy isn’t an afterthought here. COTI’s version of Private DJED relies on a privacy layer powered by garbled circuits, a cryptographic technique the team says is fast, light and scalable. The result: users can move DJED with confidential amounts and addresses, while still enabling selective disclosure so enterprises and regulated actors can remain compliant.
Key use cases COTI highlights include fully private DeFi, supply-chain finance, enterprise payments, real-world asset (RWA) markets and other flows that need confidentiality without sacrificing on-chain programmability.
On Cardano itself, COTI will offer a confidential DJED that leverages “privacy-on-demand” capabilities, meaning transaction details (amounts, addresses) can be hidden by default or revealed selectively to chosen parties. In practice, users will be able to:
- Send and receive DJED privately;
- Ensure transaction details are visible only to selected counterparties;
- Preserve on-chain privacy while remaining compliant where required.
The Privacy Hub and Cross-chain Doorway
By deploying a wrapped Private DJED on Midnight, COTI gains a privacy-native execution environment with confidential smart contracts, ideal for institutions that want shielded transfers and programmable privacy. Midnight’s architecture, built to interoperate with other chains, also turns DJED into a hub for cross-chain private stablecoin flows.
COTI pitches this as the world’s first stablecoin with native privacy support across multiple chains and privacy layers, combining open finance (open source code, dApp integrations) and private finance (confidential transfers, selective disclosure).
Put in ecosystem terms: Cardano already hosts DJED’s native infrastructure and is estimated to have around 1 million active users and hundreds of projects. Midnight, by contrast, claims a much broader multi-chain reach; COTI points to a potential audience of 12–18 million users across eight blockchains. If Private DJED gains traction on Midnight, it could deploy private, compliant stablecoin liquidity into a far larger cross-chain market.
The practical outcome COTI is aiming for is simple: make DJED the go-to stablecoin for developers who need programmability and privacy, and for enterprises that need confidential rails that still interoperate with mainstream DeFi.
For developers: the open-sourcing of the order API, chain indexer, and frontend removes friction to building custom experiences around DJED. For enterprises and privacy-minded users: Private DJED on COTI, Cardano, and Midnight offers a programmable, auditable stablecoin that can hide sensitive data while preserving compliance.
Whether you’re building a dApp that needs a private settlement layer or a finance team that wants confidential on-chain flows for real-world assets, DJED’s new direction is a clear bet on privacy, modularity, and cross-chain scale.
