Paxos Launches USDG Global Stablecoin Network

As a seasoned researcher with a keen interest in blockchain technology and its potential to revolutionize finance, I find the launch of Paxos’ Global Dollar Network in partnership with prominent industry players intriguing. The introduction of USDG, a stablecoin pegged to the U.S. dollar and backed by a yield-sharing model, is an innovative approach that could significantly enhance the adoption and utility of stablecoins.


Paxos has teamed up with Kraken, Robinhood, Galaxy Digital, Anchorage Digital, Bullish, and Nuvei to introduce the Paxos Global Dollar Network.

As per the announcement, this network has been established to facilitate the use of a new digital currency called USDG, which is tied to the U.S. dollar and adheres to forthcoming stablecoin regulations set by the Monetary Authority of Singapore. Unlike other digital currencies of its kind, USDG incorporates a yield-sharing mechanism, allowing those who help increase its adoption to earn returns from the reserve funds.

In simpler terms, Johann Kerbrat, the top executive at Robinhood Crypto, stated that stablecoins serve as a connection point between conventional banking and digital currencies, facilitating quicker, cheaper, and smoother financial transactions.

Currently, only selected financial entities are authorized to utilize USDG for developing innovative applications. According to Anchorage Digital’s CEO, Nathan McCauley, these pioneering users can anticipate benefits such as swift peer-to-peer and cross-border transactions, along with the opportunity to earn rewards on their stablecoin deposits.

DBS Bank, the largest bank in Southeast Asia, has been appointed to handle and safeguard USDG’s reserves. At launch, USDG will be accessible through digital platforms such as Anchorage Digital, Galaxy Digital, Kraken, and Paxos, with additional platforms expected to join as USDG expands its reach.

Charles Cascarilla, CEO of Paxos, referred to the project as a “rewiring of the financial infrastructure.” He explained that the network welcomes anyone to participate and its purpose is to foster worldwide adoption of stablecoins.

Currently, USDG is only on the Ethereum blockchain, but Paxos plans to add more blockchains over time as regulations allow. 

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2024-11-05 14:28