# Paxos Labs launches USAD, a privacy-preserving dollar stablecoin, on Aleo mainnet

Canonical page: https://technooptimist.io/stories/paxos-labs-launches-usad-a-privacy-preserving-dollar-stablecoin-on-aleo-e4deafcb
Date: 11 Feb 2026
About: [Aleo](https://technooptimist.io/companies/aleo.md) · [Aleo network](https://technooptimist.io/crypto/aleo-mainnet.md)
Original source: https://www.theblock.co/post/389101/privacy-preserving-usad-stablecoin-launches-aleo-layer-1-mainnet-paxos-partnership

USAD runs on Paxos' issuance infrastructure and targets payroll, business payments and DeFi that are hard to run on fully transparent chains. It follows Circle's pilot of USDCx, a private USDC, on Aleo.

## Key facts

- Aleo COO Leena Im: built to meet oversight requirements while protecting sensitive user data.
- Paxos Labs co-founder Bhau Kotecha expects more firms to want custom stablecoins.
- USAD is backed 1:1 by USDG reserves held by Paxos Trust in bankruptcy-remote accounts.

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