The stablecoin built for modern business

USAD is a U.S. dollar-pegged stablecoin that encrypts transaction data by default, built on Aleo's zero-knowledge blockchain. Unlike conventional stablecoins, which expose all transaction details on public blockchains, USAD encrypts wallet addresses, transaction amounts, and sender/receiver information end-to-end, ensuring complete transaction privacy.

USAD is issued by Paxos Labs and backed 1:1 by USDG, the reserve token of Global Dollar Network, issued by the Paxos Trust-Company. You can learn more about GDN here.

At launch, you'll be able to redeem USAD for USDG on Ethereum instantly at any time. USDG can then be redeemed for U.S. dollars through Paxos's standard redemption process via multiple venues. Shortly after launch, additional liquidity options, including on/off ramps, swap providers, and exchanges, will provide more direct redemption paths.

USAD benefits from a layered security model combining reserve backing, operational controls, network security, and privacy by design:

Reserve Backing: USAD is created from USDG or USDC deposits on Ethereum and represented as vault shares bridged to Aleo. The underlying USDG, is issued by Paxos Trust Company and backed by U.S. dollar deposits and short-term U.S. Treasury securities held in segregated, bankruptcy-remote accounts.

Network Security (Aleo): The transaction layer is secured by Aleo’s decentralized, zero-knowledge proof consensus mechanism, which mathematically verifies transactions without revealing the underlying data.

The combination of a trusted stablecoin (USAD) and a private ledger (Aleo) accelerates transformative use cases that are typically impossible with most other stablecoins and blockchains:

Confidential Payroll: Pay a global workforce instantly in stablecoins without leaking salaries to the entire company or public.

Private B2B Payments: Settle vendor invoices and supply chain payments via stablecoins without exposing sensitive commercial relationships or pricing data to competitors.

Atomic Settlement: Execute complex financial operations (like trading or lending) 24/7 with instant settlement, ensuring data is revealed only to the counterparty and necessary auditors.

USAD is backed 1:1 by USDG, which is held in an Ethereum-based vault smart contract.

The underlying reserves backing USDG consist of:

• U.S. dollar deposits held in segregated accounts at Paxos Trust Company
• Short-term U.S. Treasury securities in segregated custody

All reserves are held by Paxos Trust Company, an OCC-chartered national trust company, and are segregated from Paxos's corporate assets in bankruptcy-remote accounts.

You can read more about the USDG Vault Architecture here.

Yes. USDG reserves are audited monthly by independent third-party accountants who attest to the 1:1 backing.

You can view all transparency reports and reserve attestations here.

USAD works like any stablecoin, with the added benefit of privacy.

• All of the following you can do privately:
• Send USD-denominated payments.
• Swap into or out of assets.
• Hold USD value, with encrypted balances and transfers.
• Secure and private custody and payments are core features.

USAD is issued by Paxos Labs, the enterprise infrastructure platform for embedded on-chain finance. USDG, the underlying backing asset for USAD, is issued by Paxos Trust Company, an OCC-chartered national trust company. Paxos Labs operates as a spinout from Paxos, inheriting institutional-grade operational controls, regulatory expertise, and reserve management capabilities.

Paxos Labs Paxos GDN documentation

USAD does not require personal data to use. Paxos maintains regulatory controls such as freeze-list enforcement and view-key access for lawful requests for only the backing asset, USDG.

Privacy - USAD enables private custody and private transfers, capabilities not available with USDC or USDT.

The asset-specific view key is held by a trusted compliance service as the sole party in possession of the view key. Only that entity can decrypt receipts as required by local law.