Crypto and Fintech Leaders Launch Global Dollar Network and USDG Stablecoin

On November 5, crypto, venture capital and fintech companies 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 USDG global dollar stablecoin.

Paxos will power the stablecoin, which complies with the Monetary Authority of Singapore’s upcoming stablecoin framework.

USDG wants 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 business standards and protection of the consumer

Southeast Asia’s largest bank by assets, DBS Bank, will serve as the lead banking partner in cash management and reserve custody.

(1/4) Today, they launch Global Dollar Network (@global_dollar ) — an open network to accelerate and reward the global adoption of stablecoins. Additional partners include @Anchorage, @Bullish, @galaxyhq, @krakenfx, @Nuvei i @RobinhoodApp.

Check out 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 turns this dynamic on its head with a more equitable model that will bring major participants into the ecosystem and accelerate new use cases for stablecoins.”

Charles Cascarilla, CEO and co-founder of Paxos, reiterated the point, stating that the leading stablecoins “are not regulated and maintain the entire reserve economy.”

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

Industry leaders, custodians, exchanges, payment companies, 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 BUSD stablecoin 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 Perspective

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

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

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

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