Paxos, a stablecoin firm, has issued a new dollar-pegged token called the Global Dollar (USDG) with support from several popular crypto firms. USDG is a safe and trusted stablecoin, designed to help advance stablecoin adoption globally and meet the needs of regulated institutions with high operational standards.
It is currently available on Ethereum, but Paxos plans to issue USDG on other blockchains soon. USDG is backed by USD deposits and high-quality liquid assets to maintain price parity with the dollar and ensure that fiat redemptions are always possible. DBS Bank will act as Paxos’ primary banking partner for cash management and USDG reserve custody.
Paxos Digital Singapore, regulated by the Monetary Authority of Singapore, is the issuer of USDG, while Paxos Global, an affiliate, will partner with other services to distribute the USDG stablecoin to individuals and institutions. On November 4, Paxos unveiled the Global Dollar Network, a group that will work to incentivize crypto and financial solutions that make use of the USDG stablecoin.
The network is expected to revolutionize the market by offering a stablecoin with proportional economic benefits to all partners. Other members will join the group, which is currently in an invite-only phase. As of November 7, the stablecoin market was worth $180 billion, making up a significant portion of the $2.7 trillion crypto market.
Tether’s USDT and Circle’s USDC stablecoins lead the stablecoin market, with market caps of $122 and $37 billion, respectively. USDG has a smaller market cap of $10.7 million. Other companies are advancing their stablecoin plans, including Ripple, BitGo, and Revolut.
