# Introducing USAD: The Privacy-Focused U.S. Dollar Stablecoin by Aleo Network Foundation and Paxos Labs
## Announcement of USAD: A Revolutionary Stablecoin
On October 1, the Aleo Network Foundation and Paxos Labs made waves with the introduction of USAD – a groundbreaking U.S. dollar stablecoin that merges cutting-edge privacy technology with robust infrastructure. This collaboration marks a significant milestone as USAD becomes the inaugural stablecoin issued on a layer-1 blockchain, blending smart contract capabilities with zero-knowledge cryptography to set new standards in the realm of digital finance.
## Bridging the Gap with Privacy-Preserving Technology
USAD represents a fundamental shift towards enhanced privacy in blockchain-based financial transactions. By leveraging Aleo’s zero-knowledge cryptography alongside Paxos Labs’ established issuance framework, USAD ensures that sensitive transaction information, such as participant identities and amounts, remains confidential. This innovative approach directly addresses the longstanding obstacle to widespread institutional acceptance of blockchain finance.
## A Harmonious Blend of Security and Transparency
Crafted within Paxos Labs’ rigorous regulatory framework and backed by top-tier institutional assets, USAD guarantees a secure and trustworthy stablecoin experience. At the same time, Aleo’s intricate zero-knowledge infrastructure serves as the foundational backbone for safeguarding user confidentiality. In the words of Leena Im, the Chief Operating Officer at The Aleo Network Foundation, “USAD embodies the essence of a programmable stablecoin with privacy at its core, demonstrating its viability for mainstream adoption.”
## Empowering Enterprises for the Future
Bhau Kotecha from Paxos Labs emphasizes the transformative potential of stablecoins in financial markets. By teaming up with Aleo, USAD ushers in a new era where enterprises can integrate private, programmable, and dependable digital dollars, setting a precedent for the evolution of modern finance. This strategic collaboration underscores the partners’ commitment to driving innovation and reshaping the landscape of digital currency solutions.
## Embracing a Growing Trend
The revelation of USAD arrives amidst the escalating popularity of stablecoins, which witnessed a staggering $27.6 trillion in transaction volume in 2024, surpassing the combined totals of industry giants like Visa and MasterCard by over seven percent. The recent enactment of the Genius Act in July 2025, establishing a regulatory framework for U.S. stablecoins, has further propelled their integration into mainstream financial ecosystems. USAD builds on Aleo Foundation’s active involvement in the Paxos-led Global Dollar Network and recent collaborations with key players like Binance Alpha, Revolut, Worldpay, and Request Finance.
## Conclusion
USAD marks a pivotal moment in the evolution of stablecoins, heralding a new dawn for privacy-focused digital currency solutions. The partnership between Aleo Network Foundation and Paxos Labs underscores a shared commitment to innovation, security, and transparency in shaping the future of financial technology. As the boundaries of blockchain finance continue to expand, USAD stands at the vanguard of a transformative shift towards privacy-enhanced stablecoin offerings.
*#Featured image via Shutterstock.*
*This post first appeared on Finbold.*