After receiving approval for the Global Dollar (USDG) stablecoin in July from the Monetary Authority of Singapore, several players in the crypto industry have officially launched their cryptocurrency pegged to the US dollar rate.
Several crypto players, including Kraken and Paxos, unveil their new stablecoin, the Global Dollar (USDG)
Several players in the crypto ecosystem have come together in recent months with the aim of developing their own stablecoin backed by the US dollar. Last week, le Global Dollar (USDG) was officially launched on the markets, allowing any investor to acquire it.
Among the companies that participated in the project, we find Anchorage Digital, Bullish, Galaxy Digital, Robinhood, Nuvei, Paxos et Kraken. The latter also officially offered the stablecoin on its platform for trading this Monday evening. Cryptocurrency is notably available in the United States, but not yet in Europe.
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Concretely, USDG will be issued by the Singaporean subsidiary of Paxos, Paxos Digital Singapore. As the consortium indicates, the Global Dollar is “ substantially compliant » to the future legislative framework around stablecoins supported by the Monetary Authority of Singapore.
For Paxos, USDG is its 6th stablecoin and its 2nd localized offering after the launch of Lift Dollar (USDL) in the United Arab Emirates. At present, the stablecoin is limited to the Ethereum blockchainbut the project leaders plan to extend it to other networks, but also to other regions of the world as regulations on stablecoins evolve.
Alongside the launch of the USDG stablecoin, the various stakeholders of the project also revealed the Global Dollar Network, a platform aiming to bring together the crypto community around USDG and stablecoins in general.
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As Ronak Daya, product manager at Paxos, says, this project was launched to meet the expectations of institutional investors who is increasingly interested in the stablecoin market:
Business interest in stablecoins has never been higher than todaybut the market lacks a solution that combines regulatory compliance with real economic incentives for businesses. USDG offers a trusted solution with a leading banking partner, DBS, [1ère banque de Singapour, NDLR] who will be the catalyst to drive stablecoin innovation and enterprise adoption globally.
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Thus, Global Dollar Network promises to “ revolutionize the stablecoin market by proposing a solution where partners can receive up to 100% of the returns generated by assets supporting USDG detained on the platform ».
Within this “network” that anyone can join, each user can accumulate rewards based on their activity. « We distribute on average 97% of the profits we make from USDG. This is a big difference from how other stablecoins have been implemented and created so far, » concludes Charles Cascarilla, CEO of Paxos.
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Source : Kraken, Paxos, Global Dollar Network
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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