The Paxos Labs and the Aleo Network Foundation are working to launch a US dollar dollar aimed at maintaining user privacy, and appealing to financial institutions, companies said.
Released on Wednesday, USAD token was built on Aleo’s zero-knowledge (ZK) Layer 1 blockchain and released by Paxos Labs, a regulated infrastructure provider consumed under Paxos, the firm behind popular stablecoins such as and The global dollar (USDG).
Stablecoins is a rapidly growing class of cryptocurrencies that are especially considered a cheaper, faster alternative for transferring money around the world. These are tokens with prices tied to Fiat Money like the US dollar, and use blockchains to solve transactions. The interest in Stablecoins has accelerated US president Donald Trump who signed the Genius Act earlier this year, conducting federal standards for stablecoin providers.
Unlike conventional stablecoins such as Tether’s USDT and USDC, Aleo wallet addresses and transaction values, protecting them from public view.
That design can appeal to financial institutions carefully in exposing sensitive data of on-chain transactions.
“The Stablecoins has proven to be one of the strongest changes in financial markets, and we just fired the surface,” Bhau Kotecha of the Paxos Labs said in a statement. The USAD aims to “bring digital dollars to a new season where businesses can germinate money that is private, programmed and trusted from the ground up,” he added.
The new token fits the focus of the Aleo Network Foundation of the development of cryptographic tools that provides for programming transfers without revealing counterparts. The project Drew venture Backing of capital From A16Z, Coinbase Ventures and Softbank among others.
“Privacy is the missing link to the blockchain adoption on the scale, and in USAD we have proven that it can exist in a programmable stablecoin,” said Leena IM, chief operating officer at the Aleo Network Foundation. “By pairing Aleo’s technology with the stack of Paxos Labs’, we take a joint, approach to the front door with businesses to show that digital dollars can both be trusted and clear in administration while protecting user confidentiality.”
