USAD will combine Aleo\u2019s privacy-focused technology with Paxos Labs\u2019 issuance infrastructure.<\/p>\n
The Aleo Network Foundation, the non-profit organization that supports the Aleo Network, has partnered with Paxos Labs to launch USAD, a U.S. dollar stablecoin.<\/p>\n
USAD will be a dollar-backed stablecoin issued on a Layer 1 blockchain with a focus on privacy, according to a press release viewed by The Defiant. A key feature is the use of Aleo\u2019s zero-knowledge cryptography to enable end-to-end encrypted transactions.<\/p>\n
Paxos Labs, which will provide the issuance and reserve management infrastructure for USAD, is a startup that was launched by Paxos<\/a> earlier this year. Paxos is currently the issuer of several stablecoins \u2013 including PayPal\u2019s PYUSD<\/a> and Global Dollar (USDG) \u2013 and is valued at $2.4 billion, according to Traxcn<\/a>.<\/p>\n The organizations said the model aims to address a gap in current stablecoin systems, which typically make all transaction data publicly visible on-chain. By encrypting transactions, USAD aims to promote broader institutional adoption of blockchain-based payment systems.<\/p>\n \u201cPrivacy is the missing link in blockchain adoption at scale, and with USAD, we are proving it can exist in a programmable stablecoin,\u201d said Leena Im, COO at the Aleo Network Foundation. \u201cBy pairing Aleo\u2019s technology with Paxos Labs\u2019 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.\u201d<\/p>\n Stablecoins<\/a> have become a major driver of on-chain finance in recent years, recording more than $268.6 trillion in cumulative transaction volume since 2019, according to Visa<\/a>. That growth has only accelerated in 2025 following the passage of the GENIUS Act in July<\/a>, which introduced federal rules for issuance and oversight. <\/p>\n The sector\u2019s total market capitalization now stands at over $297 billion, per DeFiLlama. Tether\u2019s USDT maintains a nearly 59% market share with a market capitalization of $174.5 billion. <\/p>\n \u201cStablecoins have proven to be one of the most powerful innovations in financial markets, and we are only scratching the surface of their potential,\u201d said Bhau Kotecha, co-founder at Paxos Labs. \u201cPartnering 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.\u201d<\/p>\n The move comes amid a broader trend of new stablecoins entering a crowded market. Last week, Hyperliquid launched USDH via Native Markets<\/a>, and earlier this month, Tether announced USAT<\/a>, its U.S.-focused stablecoin.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" USAD will combine Aleo\u2019s privacy-focused technology with Paxos Labs\u2019 issuance infrastructure. The Aleo Network Foundation, the non-profit organization that supports the Aleo Network, has partnered with Paxos Labs to launch USAD, a U.S. dollar stablecoin. USAD will be a dollar-backed stablecoin issued on a Layer 1 blockchain with a focus on privacy, according to a […]<\/p>\n","protected":false},"author":2,"featured_media":407078,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-407077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/407077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=407077"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/407077\/revisions"}],"predecessor-version":[{"id":407079,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/407077\/revisions\/407079"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/407078"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=407077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=407077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=407077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}