Flare, a blockchain platform focused on data infrastructure, has launched Flare Confidential Compute (FCC) on Songbird, its canary network. The new system processes private institutional data and produces signed outputs that smart contracts can verify onchain while the underlying information remains undisclosed. Its first institutional deployment is a Proof of Reserves extension, with Hex Trust's USDX becoming the first stablecoin to adopt the technology. Reserve backing is central to how a stablecoin is accepted as collateral and used across trading venues, and that is where this first deployment is aimed.

Smart contracts depend on data they can independently verify. Flare already handles public information through its Flare Time Series Oracle (FTSO) and Flare Data Connector (FDC). Institutional information, however—such as reserve balances, fund net asset values, collateral positions, credit data and compliance records—typically cannot be made public. Absent a mechanism to prove statements about such data, contracts are left to omit it or accept it on trust. FCC addresses this gap by processing confidential inputs inside a registered Trusted Execution Environment (TEE) and returning a signed result that contracts can check before acting on it. Only the aggregated conclusion is published onchain; the source data stays private.

Proof of Reserves Comes to USDX

The initial FCC application is a Proof of Reserves extension designed for assets whose backing combines public and private elements. Hex Trust is applying it to USDX, its 1:1 USD-referencing stablecoin. Reserve information is supplied from two sources: a public reserves figure and a restricted cash reserves amount. The extension evaluates the combined total inside the TEE against USDX supply across the ecosystem, then produces a signed outcome indicating whether the stablecoin is backed 1:1 or above. The result is published without revealing the underlying reserve figures.

USDX serves as collateral in the FAssets system on Songbird, and its reference feed is transitioning to this reserve-based model. Decentralized exchanges can use the same outcome as a pricing basis for USDX, with feed metadata showing at each update whether coverage meets the required threshold. In both cases, the onchain signal gives integrating protocols a coverage check they can evaluate programmatically.

"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," said Ben Usinger, Head of Stablecoins at Hex Trust, in a written statement.

Verifiable Execution Behind the Scenes

FCC enables contracts to confirm not only the outcome but also the conditions under which it was produced. Songbird data providers relay and sign every instruction under Flare's signing policy, and the TEE executes an instruction only once it carries a weighted majority of provider signatures. This is the same provider set that operates the FTSO and the FDC.

Each approved FCC code version is represented by the hash of a reproducible container image approved onchain, meaning machines running unapproved software cannot register and upgrades become onchain events. When joining an extension, a TEE presents hardware attestation confirming it runs an approved code version. The attestation is verified through the FDC and recorded onchain. The machine's signing key is created inside the enclave at boot and never leaves it. The TEE signs its output with this registered identity, and a verifier contract known as the TEE registry validates the signature before any other contract can store or use the result. The practical effect is that the basis for trusting any given result—approved code, attested hardware and a registered signing key—is itself recorded onchain.

For Proof of Reserves, FCC combines public reserve components, private reserve records and token supply in a single calculation, then applies a defined coverage rule ranging from a single threshold to a multi-condition policy.

Completing the Data Stack

FCC rounds out Flare's data infrastructure by extending it to information that cannot be published directly onchain. It sits alongside the FTSO for public market data and the FDC for cross-chain and Web2 verification, all under one network-level provider set and signing policy. This establishes a shared framework for applications that require verified conclusions from private data, including lending markets that blend public prices with coverage information, tokenized funds producing verifiable NAVs from undisclosed holdings, and credit or compliance use cases where records must remain confidential.

FCC is currently live on Songbird following the acceptance of STP.13 in July 2026, with a separate deployment on Flare to follow. The initial release runs on TEE machines using Google Cloud confidential computing, operated by the Flare Foundation, and the architecture is intended to expand toward a wider set of operators and hardware vendors. The extension framework will open to developers later during the bootstrap period, with documentation available through the Flare Dev Hub.