Zero-knowledge blockchain Aleo's recent "Stablecoin Privacy Gap Report 2025" reveals a stark contrast: while institutional stablecoin transactions have surged to $1.22 trillion in the last two years, privacy protocol usage remains negligible. Despite the massive transaction volume, only $624 million found its way into privacy protocols, with zero institutional deposits. This highlights a significant gap between the potential for privacy and its actual adoption in the stablecoin space. Aleo notes emerging institutional privacy solutions like PayPal's PYUSD confidential transfers and Paxos' USAD. These developments signal a potential shift, with a projected migration of institutional funds towards privacy rails in the near future. The report underscores the need for enhanced privacy measures to safeguard sensitive financial data within the burgeoning stablecoin ecosystem. ```