Originally published on: November 05, 2024
In an exciting collaboration, leading names in both crypto and traditional finance, such as Robinhood, Galaxy Digital, Kraken, and Paxos, have joined forces to unveil the latest stablecoin linked to the US dollar.
Breaking away from the conventional stablecoin market, Paxos announced the launch of an “open network” on Nov. 5 that aims to revolutionize the adoption and usage of stablecoins globally.
Kraken’s co-CEO, Arjun Sethi, emphasized the need for healthy competition in the stablecoin industry, stating that their new stablecoin, USDG, will attract mainstream players and pave the way for innovative use cases.
The Global Dollar Network is tailored to promote the widespread acceptance of Paxos’ USDG stablecoin, which made its debut on Nov. 1. While currently accessible on the Ethereum blockchain, plans are in place to expand its availability to other chains in alignment with evolving regulations.
Issuing the USDG stablecoin from Singapore, Paxos assures compliance with the Monetary Authority of Singapore’s stablecoin framework, set to be implemented in August 2023. Notably, major institutions like DBS Bank will safeguard the US dollar reserves backing the stablecoin, ensuring a 1:1 ratio with the US dollar.
To participate in the Global Dollar Network, qualified entities like custodians, exchanges, and fintech firms must secure an invitation. The partnership with DBS Bank, according to Paxos’ Ronak Daya, will facilitate enterprise-level adoption of stablecoins.
Bolstering its digital asset portfolio, Paxos also offers PayPal USDPYUSD$1.00, Pax Dollar (USDP), and Pax Gold (PAXG) alongside the USDG stablecoin.
Set to rival prominent stablecoin issuers like Tether (USDT$1.00) and Circle’s USD Coin (USDC$0.999), USDG and its network step into a market dominated by these giants. Tether currently commands 56% of stablecoin supply on Ethereum, with USDT alone representing over two-thirds of the $84 billion stablecoin market on Ethereum.
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