A new stablecoin called USDG was launched on November 4, 2024, by a group of leading cryptocurrency companies, including Robinhood, Kraken, and Paxos. The stablecoin will share nearly all of its reserve earnings with network participants, marking a new approach to digital dollar alternatives. The Global Dollar Network includes seven founding partners: Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.
Paxos, operating from Singapore, will serve as the issuer of the USDG token under the Monetary Authority of Singapore’s upcoming regulatory framework. The Global Dollar Network aims to accelerate and reward global stablecoin adoption, and will distribute approximately 97% of its economics to network participants as a reward system based on participant activity.
DBS Bank, the largest bank in Southeast Asia, will handle cash management and custody services for USDG reserves, which will primarily consist of U.S. Treasury securities. The stablecoin will be available to U.S. users through the distribution networks of partners like Anchorage, which operates across all 50 states.
USDG enters a market dominated by Tether’s USDT and Circle’s USDC, which currently control nearly 90% of the total stablecoin market capitalization. The launch of USDG coincides with increased activity in the cryptocurrency market as bitcoin prices have risen amid expectations of lower U.S. interest rates and new crypto exchange-traded products.
The project’s governance structure includes a committee composed of representatives from the network’s partner organizations, ensuring collaborative decision-making among stakeholders. The Global Dollar Network aims to accelerate worldwide stablecoin adoption while providing proportionate economic benefits to participating organizations that contribute to the network’s growth and stability.
