Aleo's 'Stablecoin Privacy Gap Report 2025' reveals that institutions transferred $1.22 trillion in stablecoins over the past two years without utilizing privacy protocols, leaving transactions exposed on blockchain explorers. In stark contrast, only $624 million in stablecoins were routed through privacy protocols, with no institutional involvement. The report attributes this privacy gap to regulatory uncertainties and the absence of institutional-grade privacy solutions. However, emerging solutions like PayPal's PYUSD and Paxos's USAD suggest a potential shift in institutional behavior towards enhanced privacy measures.