Sodot, a provider of crypto key management infrastructure, is adding Multi-Party Computation (MPC) signing capabilities to support the privacy-focused Layer-1 blockchain Aleo. The collaboration takes aim at the alarming $1.22 trillion confidentiality risk that threatens to derail the rampant institutional adoption of stablecoin payment rails.
Institutional adoption of stablecoins is accelerating, driven by faster settlement and lower costs. But public blockchains are transparent by design, exposing transaction flows, balances, and counterparties in real time. For enterprise treasury and regulated financial operations, that visibility creates strategic and operational risk.
Aleo’s recent Privacy Gap Report highlights the scale of the imbalance: adjusted stablecoin volume reached $1.25 trillion in September 2025, with custodian activity up 256% year-over-year. Yet nearly all of that volume moves on fully transparent rails. Over the past 24 months, private-rail flows totaled just $624.4 million - a drop in the ocean compared to the massive institutional inflows.
Competitors, cybercriminals and market manipulators can glean vital intelligence by studying blockchain transactions. Public blockchain data can reveal trading patterns, inventory movements, and counterparty exposure. Aleo cites examples such as Wintermute averaging ~73,000 daily transactions and OSL’s $1.47 million average ticket size all visible on-chain. For institutions operating at scale, transparency is increasingly a competitive liability. In other words, every large bilateral trade by OSL leaks price discovery information that’s supposed to remain confidential.
Aleo’s Provable’s Shield Wallet stands out as a compelling solution. It leverages zero-knowledge cryptography to mask stablecoin transactions, so that the data is hidden but verifiable. By unlocking MPC support for the Aleo Blockchain by Sodot, a key infrastructure gap for institutional adoption is addressed. Institutions’ security posture is often based on using MPC to distribute risks but none of the MPC-based solutions are currently compatible with the Aleo blockchain, due to Aleo’s distinct cryptographic architecture.
“With adding MPC support for Aleo by Sodot, we’re removing the final friction point for private institutional finance. This partnership delivers the ‘Holy Grail’ of on-chain assets: data privacy via zero-knowledge proofs, backed by multi-party security. This goes beyond just protecting sensitive financial data; we’re building the trustless infrastructure required for the next $10 trillion in private capital to move on-chain.” Leena Im, COO, Aleo
Sodot is adding MPC signing support for Aleo’s unique transaction scheme, enabling its customers, which include leading wallet providers, asset managers and custodians, to integrate Aleo into their workflows. Implemented within Sodot’s self-hosted MPC infrastructure, this allows organizations to sign Aleo transactions using distributed key management while maintaining operational control of their key material in their own environment.
“At Sodot, our mission is to redefine how crypto companies manage their most sensitive keys. By implementing MPC for Aleo, we are enabling our customers to extend the core promise of security into the realm of transactional privacy, for both funds and data,” said Ido Sofer, CEO of Sodot.
The collaboration between Sodot and Aleo sets a new standard for private-by-default stablecoin transactions. If just 5% of institutions adopt Aleo’s private payment rails, around $1 billion-$2.5 billion in stablecoin transactions each month would become invisible to outside observers.
“ Following the shared work by the teams, Aleo is better positioned to meet the security and operational standards required for institutional adoption,” Sofer added.
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About Aleo
Aleo is the world’s first-mover in private smart-contract blockchain infrastructure. Powered by zero-knowledge cryptography, Aleo combines end-to-end encryption with smart contract programmability, bringing privacy and scalability to stablecoins and blockchain-based financial systems.
For more information about Aleo and to stay updated on its latest developments, visit www.aleo.org.
