PANews reported on June 4th that Aleo released its white paper, "Stablecoin Privacy," stating that the privacy layer is a crucial infrastructure missing from the mainstream institutional adoption of blockchain payment systems. Aleo argues that while the GENIUS Act provides opportunities for the large-scale adoption of stablecoins, the issue of permanently public transaction information on public blockchains may still hinder institutions from using stablecoins in scenarios such as payroll, fund management, and supplier payments.

Aleo states that existing solutions cannot fully meet institutions' needs for privacy protection and risk management. The white paper proposes a permissionless, private stablecoin architecture based on Aleo, which, through zero-knowledge technology and programmable smart contracts, introduces a programmable risk mitigation mechanism while protecting transaction privacy, enabling institutions to conduct private transactions without sacrificing compliance and risk control.

The team behind this white paper reportedly has long been dedicated to research at the intersection of cryptography, policy, and the financial system. Team members include Yaya J. Fanusie, Global Head of Policy at Aleo; Valerie-Leila Jaber, a member of the Crypto Innovation Council and former Global Head of Financial Crime Compliance at Coinbase; and Matthew Green, a cryptographer and professor of computer science at Johns Hopkins University. They possess invaluable practical experience in private payments, financial regulation, and zero-knowledge cryptography.