- Major firms like Robinhood, Kraken, and Paxos back the Global Dollar (USDG) stablecoin.
- The reserves for USDG will be managed by DBS Bank, Southeast Asia’s largest bank.
A group of major players in the fintech and crypto world—Robinhood, Kraken, Galaxy Digital, and Paxos—have launched a new stablecoin, the Global Dollar (USDG), pegged to the US dollar and aimed at boosting accessibility and rewarding community engagement.
[1 / 4] Today, we’re launching Global Dollar Network (@global_dollar ) — an open network to accelerate and reward global stablecoin adoption. Additional partners include @Anchorage, @Bullish, @galaxyhq, @krakenfx, @Nuvei and @RobinhoodApp.
View the press release…
— Paxos (@Paxos) November 4, 2024
USDG Introduces Unique Yield-Sharing Structure for Participants
According to the Monday announcement, the USDG’s unique value proposition. Unlike traditional stablecoins, USDG will share a significant portion of the yield earned from its reserve assets with network participants, incentivizing faster adoption. Further, Paxos issued USDG stablecoin out of Singapore and governed by a committee of industry partners like Anchorage Digital and Bullish. Additionally, USDG is “substantively compliant” with the Monetary Authority of Singapore’s upcoming stablecoin framework.
“This is meant to be a community token,” said Paxos CEO Charles Cascarilla. “We’re distributing 97% of the economics, marking a departure from traditional models.”
Singapore’s DBS Bank, the largest in Asia and runs for 16 consecutive years, will manage the custody of Global Dollar reserves, ensuring secure cash management.
The stablecoin will be available on Ethereum but plans to expand to other blockchains. At present, USDG is accessible via platforms like Kraken, Galaxy Digital, and Anchorage Digital.
However, a market dominated by the two biggest players – Tether’s USDT and Circle’s USDC account for nearly 90% of the total market cap. The new stablecoin by Paxos faces stiff competition but brings an innovative, community-focused approach.
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