Crypto and Fintech Leaders Launch Global Dollar Network and USDG Stablecoin

On Nov. 5, crypto, venture capital, and fintech firms Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood announced the launch of the “Global Dollar Network.”

The partners are combining resources and expertise to increase stablecoin adoption and expand real-world use cases with the launch of the Global Dollar USDG stablecoin.

Paxos will be powering the stablecoin, which is compliant with the upcoming Monetary Authority of Singapore’s stablecoin framework.

USDG Aims to be Different

The new stablecoin aims to address the limitations of existing ones by promising to return “virtually all rewards” to participants, providing an open network model that allows additional partners to join, and focusing on meeting enterprise-grade standards and consumer protections.

Southeast Asia’s largest bank by assets, DBS Bank, will serve as the primary banking partner in providing cash management and the custody of reserves.

[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

Kraken co-CEO Arjun Sethi said there was a lack of competition in the regulated stablecoin market, which has “prevented the industry from reaching its full potential.”

“USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases.”

Charles Cascarilla, CEO and co-founder of Paxos reiterated the point, stating that the leading stablecoins “are unregulated and retain all the reserve economics.”

“Global Dollar Network will return virtually all rewards to participants and is open for anyone to join,” he added.

Industry leaders, custodians, exchanges, payment firms, merchants, protocols, card networks, banks, and investment platforms have been invited to join the Global Dollar Network to support the initiative.

Paxos minted the Binance stablecoin BUSD until it was hit with SEC enforcement action in February 2023, when it was forced to stop issuing the asset. The SEC dropped its investigation into the company in July 2024, but by then, the stablecoin had collapsed.

Stablecoin Ecosystem Outlook

The new stablecoin enters a crowded marketplace dominated by Tether, which has a 68% market share and circulation of $120 billion USDT, according to CoinGecko.

The regulated Circle stablecoin USDC is the second largest dollar-pegged asset with a 20% market share and circulation of $35 billion. USDS, formerly Maker’s DAI, is the third largest stablecoin with a $5.6 billion market capitalization and a 3% market share.

There were no technical or reserve details or supply figures provided for the new USDG asset.

The post Crypto and Fintech Leaders Launch Global Dollar Network and USDG Stablecoin appeared first on CryptoPotato.