Originally published on: November 05, 2024
Several leading companies in the crypto and traditional finance sectors, such as Robinhood, Galaxy Digital, Kraken, and Paxos, have collaborated to launch a groundbreaking stablecoin network pegged to the United States dollar.
According to a recent announcement by blockchain infrastructure firm Paxos, this innovative “open network” aims to accelerate the global adoption and utilization of stablecoins, revolutionizing the industry.
Kraken co-CEO Arjun Sethi emphasized the importance of breaking the monopoly in the regulated stablecoin market and expressed optimism about the new stablecoin, USDG, which promises to attract mainstream participants and drive the development of new use cases.
The network’s primary focus is to facilitate the widespread acceptance of Paxos’ USDG stablecoin, which was introduced by the firm on November 1st. While currently exclusive to the Ethereum blockchain, Paxos plans to extend the stablecoin to other chains as regulatory frameworks evolve.
Excitingly, Paxos will issue the USDG stablecoin from Singapore, ensuring compliance with the Monetary Authority of Singapore’s stablecoin framework established in August 2023. With DBS Bank, Singapore’s largest banking institution, managing the stablecoin’s US dollar reserves, users can rest assured that their tokens are backed 1:1 by dollar deposits, US government securities, and cash equivalents.
Qualified entities, including custodians, exchanges, and fintech firms, will have the opportunity to join the Global Dollar Network through invitation only, enhancing the stability and credibility of the stablecoin ecosystem.
Paxos’ head of product, Ronak Daya, highlighted the transformative impact of the DBS partnership on enterprise-level stablecoin adoption, envisioning a future where stablecoins play a crucial role in mainstream financial transactions.
As the USDG stablecoin and the Global Dollar Network prepare for launch, they are poised to disrupt a market currently dominated by Tether and USD Coin. With innovative solutions and strategic partnerships, this consortium of industry leaders is driving the evolution of stablecoins and opening new avenues for financial innovation.
For more insightful articles on blockchain and crypto trends, subscribe to our weekly Crypto Biz newsletter and stay ahead of the curve in this dynamic industry.
