Paxos and the Aleo Network Foundation have launched USAD, a dollar-backed stablecoin, on the Aleo mainnet. The initiative combines Paxos's established infrastructure for issuing regulated digital assets with Aleo’s Layer 1 blockchain, which is specifically designed for privacy.

This launch addresses a significant barrier to institutional adoption of on-chain finance. By enabling private, compliant transactions, USAD is positioned for real-world enterprise use cases like payroll and B2B payments, where confidentiality is a critical requirement. The collaboration aims to provide a tool for mainstream organizations that have been hesitant to adopt public blockchains due to transparency concerns.

The core goal is to make private, programmable stablecoins accessible at scale. This move signals a growing trend toward developing blockchain solutions that meet the stringent privacy and compliance demands of traditional financial institutions, potentially unlocking significant corporate adoption.