The post Aleo and Paxos Labs Partner on Privacy-Preserving Dollar Stablecoin appeared on BitcoinEthereumNews.com.

Key highlights: Aleo and Paxos Labs are introducing USAD, the first U.S. dollar stablecoin to combine zero-knowledge privacy with enterprise-grade issuance. The move follows growing regulatory clarity, with U.S. and European lawmakers advancing stablecoin oversight frameworks. USAD differentiates itself from market leaders like USDC and USDT by encrypting identities and amounts while maintaining compliance. A privacy-first digital dollar enters the market The Aleo Network Foundation has teamed up with Paxos Labs to launch USAD, a new U.S. dollar stablecoin designed with end-to-end transaction privacy. Built on Aleo’s zero-knowledge blockchain and issued via Paxos Labs’ regulated infrastructure, USAD introduces a model that encrypts identities and transaction amounts while remaining auditable for oversight. This represents a departure from current stablecoins, where all transactions are publicly visible on-chain. By addressing this transparency gap, the project aims to make stablecoins more attractive to financial institutions that have so far hesitated due to privacy concerns. “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.”—Leena Im, Chief Operating Officer at the Aleo Network Foundation Regulatory momentum on both sides of the Atlantic The launch comes as governments move toward clearer rules for stablecoins. In July 2025, the U.S. passed the Genius Act, establishing an oversight framework for dollar-backed tokens. Meanwhile, Europe’s Markets in Crypto-Assets Regulation (MiCA), imposes stricter reserve and disclosure requirements for stablecoin issuers operating in the EU. Together, these regulatory steps signal a global shift toward stablecoins as part of mainstream financial infrastructure. With transaction volumes hitting $27.6 trillion in 2024 — surpassing Visa and…

---

Filed under: News - @ October 2, 2025 5:25 am