A group of cryptocurrency and financial technology companies have introduced a new stablecoin called Global Dollar (USDG). The USDG is a stablecoin pegged to the US dollar and issued out of Singapore by Paxos, which is “substantially compliant” with the Monetary Authority of Singapore’s (MAS) upcoming stablecoin framework.
The introduction of the USDG stablecoin comes at a time when Tether’s USDT and Circle’s USDC stablecoins make up more than 75% of the stablecoin market. The new Global Dollar Network aims to “revolutionize” the stablecoin market with a “trusted stablecoin that provides proportionate economic benefits to all partners.” The introduction of the new stablecoin aims to increase competition in the market and help the industry reach its full potential.
According to Arjun Sethi, Co-CEO at Kraken, “lack of competition” in the stablecoin market is stopping the “industry from reaching its full potential.” USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases.
Charles Cascarilla, CEO and co-founder of Paxos, said that stablecoins are changing “how people interact with US dollars and payments,” adding: “However, the leading stablecoins are unregulated and retain all the reserve economics. Global Dollar Network will return virtually all rewards to participants and is open for anyone to join.”
Users of Anchorage Digital, Galaxy Digital, Kraken, and Paxos can get USDG right away; however, USDG will soon be available across all named distribution partners.
DBS Bank, Southeast Asia’s largest bank, will serve as the primary banking partner at launch for cash management and custody of USDG reserves.
