Aleo Network Foundation and Paxos Labs unveil USAD, the first privacy-focused U.S. dollar stablecoin

The Aleo Network Foundation has partnered with Paxos Labs to launch USAD, a ￰0￱ stablecoin that integrates privacy-preserving technology with enterprise-grade ￰1￱ on October 1, the collaboration introduces the first stablecoin issued on a layer-1 blockchain that combines smart contract functionality with zero-knowledge cryptography. Aleo’s zero-knowledge cryptography meets Paxos Labs’ issuance framework USAD is designed to keep transaction details, such as participant identities and amounts, confidential, addressing a long-standing barrier to institutional adoption of blockchain-based ￰2￱ stablecoin is issued through Paxos Labs’ regulatory framework and backed by institutional-grade assets, while Aleo provides the underlying zero-knowledge infrastructure.

“Privacy is the missing link in blockchain adoption at scale, and with USAD, we are proving it can exist in a programmable stablecoin,” said Leena Im, Chief Operating Officer at The Aleo Network Foundation. “By pairing Aleo’s technology with Paxos Labs’ issuance stack, we are taking a joint, front-door approach with enterprises to show that digital dollars can be both trusted and transparent to oversight while protecting user confidentiality.” Bhau Kotecha of Paxos Labs added: “Stablecoins have proven to be one of the most powerful innovations in financial markets, and we are only scratching the surface of their ￰3￱ with Aleo allows us to bring digital dollars into a new era where enterprises can embed money that is private, programmable, and trusted from the ground up.” The announcement comes amid rising adoption of stablecoins, which recorded $27.6 trillion in transaction volume in 2024, surpassing Visa and MasterCard’s combined totals by more than seven ￰4￱ recent passage of the Genius Act in July 2025, establishing a ￰5￱ framework for stablecoins, has further accelerated mainstream ￰6￱ also builds on the Aleo Foundation’s participation in the Paxos-led Global Dollar Network, which distributes USDG, and follows recent partnerships involving Binance Alpha, Revolut , Worldpay, and Request ￰7￱ image via Shutterstock.