A new regulation-focused stablecoin, the Global Dollar Network (USDG), has been launched by a group of major companies in the crypto world, including Robinhood, Galaxy Digital, and Kraken. The aim of the project is to return the profit earned on the devices to the participants who help with the adoption.
The partners include Anchorage Digital, Bullish (owner of CoinDesk), Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood. USDG is currently only available on the Ethereum blockchain but will be available on other chains as regulation develops. The primary partner of the project is DBS Bank, the bank with the largest assets in Southeast Asia.
DBS handles the cash management required for the start-up as well as the control of the USDG reserves. The new stablecoin is expected to face tough competition from the two biggest players in the stablecoin market, Tether and USDC, which make up almost 90% of the total market capitalization. However, Kraken Co-CEO Arjun Sethi believes that USDG will be able to upset this dynamic with a fairer model that engages participants in the ecosystem and accelerates use cases.
Paxos CEO Charles Cascarilla claims that USDG will be a true community token and that anyone can join the Global Dollar Network. Users can collect rewards for activity, with about 97% of the rewards distributed.
