The Aleo Network Foundation has partnered with Paxos Labs to launch USAD, a US-pegged stablecoin issued on a Layer 1 blockchain.
The move combines smart contract capabilities with improved privacy, making sure that sensitive information such as participant identities and transaction amounts is kept confidential.
Aleo supports USAD
Aleo believes that privacy is key for blockchain adoption at scale, and with USAD, the company offers a programmable stablecoin. By connecting Alep’s technology with Paxos Labs’ issuance stack, the partnership aims to show that digital dollars can be trusted and transparent to oversight while protecting user privacy.
Partnering with the foundation allows Paxos Labs to offer enterprises digital dollars so that they can embed private and transparent money. As stablecoin use is at an all-time high, surpassing the combined annual volumes of Visa and MasterCard by more than 7%, its transaction volume reached USD 27.6 trillion in 2024. This growth, combined with regulatory clarity from bills like the GENIUS Act, offers US lawmakers a framework for stablecoin oversight and pushes for further adoption.
Additionally, Paxos Labs was integrated into Paxos, the regulated blockchain infrastructure and tokenisation platform. The launch of USAD follows this integration and the foundation’s role in the Global Dollar Network (GDN), an initiative founded by Paxos that distributes USDG, issued by Paxos Digital Singapore under stringent oversight in Singapore, the European Union, and the US, and furthers recent connections with Binance Alpha, Revolut, Worldpay, and Request Finance.
Aleo’s blockchain infrastructure is designed specifically for private and programmable payments. By joining GDN, Aleo provides new growth opportunities for the stablecoin, enabling secure, encrypted transactions that fill a critical gap in the ecosystem. This integration opens the door for institutional and developer use cases where confidentiality, data sensitivity, and user protection are essential.
