USAD is now operational on the Aleo mainnet, representing a regulated digital dollar on a programmable layer one (L1) blockchain with built-in transaction privacy.
Paxos Labs and Aleo Network Foundation announced the official launch of USAD on February 3, noting what they describe as the first stablecoin in US dollars issued on an L1 blockchain specifically designed for privacy.
This asset combines the functionality of smart contracts with Aleo's privacy architecture, allowing transaction details to remain confidential while still supporting legitimate financial activity.
According to an announcement published on Bitcoin.com News, USAD utilizes zero-knowledge technology to protect confidential information such as participant identification and transaction amounts. This design positions the stablecoin for enterprises and developers looking to utilize programmable money without disclosing all details on a public network.
“Stablecoins have already changed the way financial markets operate, and we are still in the early stages of understanding what they can enable,” said Bhau Kotecha, co-founder and head of Paxos Labs, adding that the integration of digital dollars into a privacy-supportive environment could expand institutional use cases.
With the launch of USAD, developers and organizations can use it for payments, chain financial processes, and other programmable applications that may be challenging to implement on fully transparent blockchains.
The launch signals broader efforts to adapt regulated stablecoins to environments where privacy is viewed as a feature rather than a flaw.
“Privacy has been one of the biggest barriers to widespread blockchain adoption,” said Lina Im, Chief Operating Officer of Aleo Network Foundation, emphasizing that privacy and programmability can coexist within compliance.
USAD is available on the Aleo mainnet this week, offering businesses a new way to manage digital dollars with enhanced privacy.
USAD is a stablecoin backed by the US dollar, issued on the Aleo mainnet with built-in transaction confidentiality.
