Robinhood, Kraken, Paxos Launch Global Dollar Stablecoin Network
A number of traditional finance and crypto companies, including Robinhood, Galaxy Digital, Kraken and Paxos, have formed alliances to back the latest stablecoin against the US dollar.
In a statement on November 5, blockchain infrastructure firm Paxos shared that its new “open network” is designed to accelerate the adoption and use of stablecoins worldwide.
Source: Paxos
“The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential. USDG will strengthen this dynamic with a fairer model that brings key players into the ecosystem and accelerates new stablecoin use cases,” Kraken CEO Arjun Sethi said in a statement.
The network is designed to support global adoption of the Paxos USDG stablecoin launched by the company on November 1.
USDG is currently only available on the Ethereum blockchain, but according to Paxos, the stablecoin will be available on other chains.
Paxos will issue the USDG stablecoin from Singapore, which the Monetary Authority says is “highly compliant” with Singapore's upcoming stablecoin framework established in August 2023.
Qualified entities, including custodians, exchanges and fintech companies, can join the Global Dollar Network by invitation.
The firm stated that the stable coin is backed by the US dollar and is managed and managed by Singapore's largest banking institution, DBS Bank. USDG ensures that users can redeem their fiat tokens at a 1:1 ratio of US dollar to dollar deposits, short-term US government securities and other cash equivalents.
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Talking about the launch of USDG, Paxos Product Head Ronak Daya said the DBS partnership will enable stable coin adoption at the enterprise level.
Other digital asset offerings offered by Paxos include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).
The USDG stablecoin and the Global Dollar Network will command between 56% and 27% of the stablecoin supply on Ethereum, respectively, in a market governed by two major stablecoin issuers, Tether (USDT) and Circle's USD Coin (USDC). According to Defillama data.
USDT accounts for 69.53% of the total $84 billion stable coin supply on Ethereum. Source: Defillama
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