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 U.S. dollar stablecoin that integrates privacy-preserving technology with enterprise-grade infrastructure

Announced 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 finance. The 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.”

“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.”

“Privacy is the missing link in blockchain adoption at scale, and with USAD, we are proving it can exist in a programmable stablecoin,” *“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 potential. Partnering 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.”

“Stablecoins have proven to be one of the most powerful innovations in financial markets, and we are only scratching the surface of their potential. Partnering 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.”

*“Stablecoins have proven to be one of the most powerful innovations in financial markets, and we are only scratching the surface of their potential. Partnering 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 percent. The recent passage of the Genius Act in July 2025, establishing a U.S. regulatory framework for stablecoins, has further accelerated mainstream integration.

USAD 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 Finance.

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