Flare Confidential Compute to Bring Private Institutional Data Onchain, Starting with Hex Trust’s USDX

First application enables verifiable Proof of Reserves for Hex Trust’s USDX stablecoin.

At a glance

Oct. 1, 2026 — Flare, the blockchain for data, has brought Flare Confidential Compute (FCC) to Songbird, its canary network. FCC processes private institutional data and returns signed results that smart contracts can verify onchain, without the data itself becoming public. The first institutional application is a Proof of Reserves extension, with Hex Trust’s USDX becoming the first stablecoin to use the technology.

Smart contracts can only act on data they can verify. While public information is supported on Flare through the Flare Time Series Oracle (FTSO) and the Flare Data Connector (FDC), institutional data such as reserve balances, fund NAVs, collateral positions, credit information and compliance records often needs to remain private.

FCC processes private inputs inside a registered Trusted Execution Environment (TEE) and returns a signed result that contracts can verify before relying on it. The underlying data remains private, with only the resulting aggregate conclusion published onchain.

Proof of Reserves for USDX

The first FCC application is a Proof of Reserves extension designed for assets whose backing includes both public and private components. Hex Trust is using the extension for USDX, its 1:1 USD-referencing stablecoin.

Hex Trust provides USDX reserve data from two sources, including a public reserves amount and a restricted cash reserves amount. The extension reads the data inside the TEE, checks the combined total against USDX supply across the ecosystem, and signs a result showing whether USDX is backed 1:1 or better. Only the result is published, without exposing the underlying reserve balances.

USDX is a collateral asset in the FAssets system on Songbird, and its feed is migrating to this reserve-based reference. The same result provides decentralized exchanges with a basis for pricing USDX, while feed metadata indicates whether reserves meet the required coverage threshold at each update.

“Integrating Flare Confidential Compute enhances the trust layer for institutional adoption by enabling real-time, onchain verifiability of USDX reserves and thus manifesting its position as a trusted stablecoin in the Flare ecosystem.”

— Ben Usinger, Head of Stablecoins at Hex Trust

How FCC verifies the result

FCC is designed so that a contract can verify not only the result, but also the conditions under which that result was produced.

For Proof of Reserves, FCC combines public reserve components, private reserve records and token supply in a single calculation. The extension applies a defined coverage rule, which can range from a single threshold to a multi-condition policy. The resulting conclusion is published without exposing the private figures that contributed to it.

Bringing public and private data together

FCC extends Flare’s data infrastructure to information that cannot be published directly onchain. The FTSO provides public market data, while the FDC verifies information from other blockchains and Web2 systems. FCC adds confidential data and computation under the same network-level provider set and signing policy.

This creates a common framework for applications that need verified results from private information. Beyond Proof of Reserves, potential applications include lending markets that combine public asset prices with private coverage information, tokenized funds that calculate verifiable NAVs from undisclosed holdings, and credit or compliance applications that require a verifiable conclusion without exposing underlying records.

Rollout

FCC is initially live on Songbird, Flare’s canary network, following the acceptance of STP.13 in July 2026. A deployment on Flare will follow separately.

The initial Songbird deployment is supported by TEE machines running on Google Cloud confidential computing and operated by the Flare Foundation. The architecture is designed to support a broader distribution of operators and hardware vendors over time.

The FCC extension framework will open to builders later in the bootstrap period. Developer documentation covering the architecture, extension development, registration and onchain verification is available through the Flare Dev Hub.

To learn more about Flare Confidential Compute and begin building, visit the Flare Dev Hub: dev.flare.network/fcc/overview.