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A new regulation-focused stablecoin, the Global Dollar (USDG), has been introduced by Paxos, with the backing of crypto industry leaders.
Partners of the Global Dollar Network include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, and Robinhood.
USDG is issued out of Singapore by Paxos, which is regulated by the Monetary Authority of Singapore (MAS) and is broadly in line with the regulator's upcoming stablecoin framework.
Available on Ethereum, with plans for expansion to her blockchains soon, USDG is fully backed by high-quality, liquid assets such as US dollar deposits, short-term U.S. government securities, and similar cash-equivalent assets, the company said.
This backing structure ensures that USDG maintains a stable 1:1 value with the US dollar, allowing for accessible token redemption and regulatory compliance by upholding higher standards of security, transparency, and reliability.
Southeast Asia's largest bank, DBS, will be USDG's primary banking partner for cash management and custody.
Ronak Daya, head of product at Paxos, said USDG offers a "trusted solution with a top-tier banking partner in DBS that will be the catalyst to drive stablecoin innovation and enterprise adoption at a global scale.”
Charles Cascarilla, CEO of Paxos, added that USDG is meant to be "community token" and that “Anybody can join the Global Dollar Network and accrue rewards for activity.
"We're distributing something like 97% of the economics. That's a big difference from how other stablecoins have been set up and created to date.”
“The way we have set this up is that the participants are being rewarded for activity that helps grow the utility of the network,” he continued. “That could be for a number of activities; different participants can be rewarded in different ways, because not everyone does the same thing, and that's actually what makes a thriving ecosystem.”
USDG is available in across the US through the distribution partners such as Anchorage.
Last week, USDT issuer Tether reported record-breaking profits for the third quarter of 2024, even as the company faces increased regulatory scrutiny from US authorities.
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The company’s net profit for the quarter reached $2.5 billion, contributing to a 2024 nine-month consolidated profit of $7.7 billion, according to its Q3 2024 attestation report, published Thursday. This significant growth has further solidified Tether’s position as the industry leader.
