Aleo and Paxos Labs Launch USAD Privacy Stablecoin for Institutional Crypto

Paxos Labs and Aleo Network Foundation have announced the launch of USAD, a U.S. dollar-pegged stablecoin designed with privacy features for financial institutions. Built on Aleo's zero-knowledge blockchain and issued through regulated infrastructure provider Paxos Labs, the USAD token encrypts wallet addresses and transaction amounts unlike conventional stablecoins like USDT and USDC. The privacy-focused stablecoin addresses institutional concerns about exposing sensitive transaction data on public blockchains. "Stablecoins represent one of the most powerful financial market innovations," stated Bhau Kotecha of Paxos Labs, noting USAD aims to create "private, programmable and trusted digital dollars for enterprises." This development aligns with growing stablecoin adoption accelerated by recent U.S. regulatory developments including the GENIUS Act. The project has secured backing from major investors including a16z, Coinbase Ventures and SoftBank, highlighting significant institutional interest in privacy-preserving blockchain solutions.