Aleo and Paxos Labs Launch Privacy-Enhancing Stablecoin for Institutions
Paxos Labs and Aleo Network Foundation plan to launch a U.S. dollar-pegged stablecoin, USAD, focusing on user privacy.
USAD will operate on Aleo's zero-knowledge (ZK) layer 1 blockchain, issued by Paxos Labs, known for stablecoins like PayPal USD and Global Dollar.
Stablecoins offer a cheaper, faster global money transfer alternative, with their interest boosted by the GENIUS Act, setting federal standards for issuers.
Unlike traditional stablecoins (USDT, USDC), USAD encrypts wallet addresses and transaction amounts, appealing to institutions concerned about data privacy.
Bhau Kotecha from Paxos Labs highlighted the potential of stablecoins and USAD's role in creating private, programmable digital dollars.
The Aleo Network Foundation seeks to develop cryptographic tools for confidential programmable transfers, supported by venture capital from firms like a16z and Coinbase Ventures.
Leena Im, COO of The Aleo Network Foundation, emphasized that USAD demonstrates blockchain privacy in a programmable stablecoin while maintaining regulatory transparency.
