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Paxos Labs debuts USAD on Aleo, combining ZK privacy with compliant dollar backing for real-world blockchain use. Paxos Labs, a regulated blockchain infrastructure firm specializing in stablecoin issuance, has launched USAD, a privacy-preserving stablecoin on the Aleo Network’s mainnet. The dollar-pegged token operates on Aleo, a Layer 1 blockchain built on zero-knowledge cryptography that shields wallet addresses and transaction amounts from public view while preserving audit capabilities. The launch follows Circle’s January 2026 debut of USDCx, a privacy-oriented variant of its flagship USDC token, on the same network. Aleo went live in September 2024 after securing $200M in Series B funding at a $1.45B valuation, with backing from SoftBank Vision Fund 2, a16z, Coinbase Ventures, and Tiger Global. Toku plans to deploy a confidential payroll product using the new stablecoin in the first quarter of this year, targeting processing volumes above $1B. Meanwhile, Paxos continues to expand its stablecoin infrastructure across the industry. The company provides backend issuance services for PayPal’s stablecoin and is a founding member of the Global Dollar Network, a stablecoin consortium whose participants include Kraken, Robinhood, and OKX.