Aleo, a well-known blockchain project, has announced a pilot program in Colombia that aims to transform the distribution of humanitarian aid through privacy-focused technology. The initiative leverages zero-knowledge (ZK) cryptography to provide stablecoin donations to displaced communities without exposing personal data. Blockchain announced this update in a recent tweet on its official X account.
A new aid model is being piloted in Colombia.
In partnership with @mercycorps and @gsr_io / @foundation_gsr, @HumLinked leverages Aleo’s privacy technology to provide private stablecoin donations to displaced communities, allowing personal data and… pic.twitter.com/N5LmpwmXc8
— Aleo (@AleoHQ) April 20
Aleo deploys privacy-focused on-chain aid system with USDCx and WhatsApp access
The program was developed in partnership with Mercy Corps, GSR and its affiliated foundation GSR, and Humanity Link, according to the announcement. This is one of the first practical deployments of private on-chain humanitarian assistance at scale. Aleo emphasized the importance of this initiative, noting that the solution allows organizations to distribute funds while protecting recipients’ identities. Unlike traditional blockchain-based donation systems that expose transactions publicly, Aleo’s infrastructure ensures complete privacy through a programmable Layer 1 network.
This system utilizes a private version. $USDCKnown as USDCx, it enables secure and confidential transfers. Beneficiaries can register via WhatsApp and access funds via QR code, eliminating the need to set up complex cryptocurrency wallets or publish public transaction history.
Privacy-focused aid pilot begins with DRC and GOAL Global
Two pilot programs are already underway or in development. The first initiative will be implemented in partnership with the Danish Refugee Council, and the second initiative will be launched soon with GOAL Global.
According to Mercy Corps Ventures, traditional aid systems often fail to prioritize privacy, putting vulnerable populations at risk. The group stressed that displaced people could face serious consequences if asked to share personal data, while opting out of registration could mean losing access to vital support.
Implementing partner Humanity Link described the project as a major step towards financial inclusion, highlighting the use of zero-knowledge technology to enable safe and dignified aid delivery.
Why this initiative matters
Protecting personal information is critical in areas affected by conflict and displacement. Aleo’s approach allows organizations to verify eligibility without revealing their identity, setting a new standard for privacy-protecting humanitarian aid.
The pilot comes as aid organizations are increasingly considering blockchain solutions for faster and more efficient cash transfers. However, concerns about transparency and data disclosure have slowed implementation. This initiative aims to overcome these limitations by combining privacy-focused infrastructure with stable digital assets.
The program, currently focused on Colombia, is designed to be scaled up globally and could serve as a model for future humanitarian efforts. Further updates are expected as the pilot progresses, marking a significant development at the intersection of blockchain technology, privacy, and global aid.
