The Aleo Network Foundation has joined the Global Dollar Network (GDN), a stablecoin consortium founded by Paxos that supports the USDG stablecoin.
The network includes members such as Robinhood, Worldpay, Standard Chartered, Kraken, and Anchorage Digital. Aleo becomes one of the first privacy-preserving Layer-1 blockchains to integrate into GDN.
Aleo’s blockchain infrastructure is designed specifically for private and programmable payments. By joining GDN, Aleo provides new growth opportunities for USDG, enabling secure, encrypted transactions that fill a critical gap in the stablecoin ecosystem. This integration opens the door for institutional and developer use cases where confidentiality, data sensitivity, and user protection are essential.
Bridging privacy and compliance in digital payments
Privacy remains a key challenge in stablecoin adoption. Despite a USD 172 billion market capitalisation and USD 27.6 trillion in transaction volume processed in 2024, less than 0.01% of stablecoin activity is fully encrypted. This leaves institutions, merchants, and end-users exposed to potential data breaches and privacy risks. Aleo’s zero-knowledge proof technology addresses this issue, enabling confidential transactions without compromising regulatory compliance.
USDG is issued by Paxos Digital Singapore under stringent oversight in Singapore, the European Union, and the US. The combination of Aleo’s privacy-preserving infrastructure and USDG’s regulated framework allows for compliant, secure, and programmable stablecoin payments. Analysts note that this synergy could accelerate the adoption of stablecoins in private and enterprise-focused financial applications.
Developers and enterprises can now explore confidential payment solutions and DeFi applications using Aleo’s Layer-1 blockchain and USDG integration. From private payment networks to regulated DeFi protocols, Aleo aims to provide tools that balance user privacy with financial transparency. Institutions interested in exploring these applications can engage with Aleo through its official Discord server.
