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Global Dollar Network launches with USDG stablecoin initiative

Global Dollar Network launches with USDG stablecoin initiative

GrafaGrafa2024/11/06 11:00
By:Isaac Francis

On November 5, major players in crypto, fintech, and venture capital, including Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood, introduced the “Global Dollar Network” and its USDG stablecoin.

This collaborative effort aims to boost stablecoin adoption and expand practical applications in the digital economy.

Paxos will power USDG, designed to comply with the Monetary Authority of Singapore’s upcoming stablecoin regulations.

DBS Bank, Southeast Asia’s largest bank by assets, will provide essential banking support for USDG, handling cash management and reserve custody.

USDG seeks to address limitations seen in the existing stablecoin market.

Unlike traditional stablecoins, USDG promises to “return virtually all rewards” to network participants and offers an open network model, inviting additional partners to join.

The stablecoin also emphasises enterprise-grade standards and consumer protections.

"USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases," explained Kraken co-CEO Arjun Sethi, highlighting the need for increased competition in the stablecoin market.

"Global Dollar Network will return virtually all rewards to participants and is open for anyone to join," stated Charles Cascarilla, CEO and co-founder of Paxos, reinforcing the vision of an inclusive and equitable stablecoin ecosystem.

The initiative invites industry leaders, including custodians, exchanges, payment firms, merchants, protocols, card networks, banks, and investment platforms, to participate in the Global Dollar Network.

This broad collaboration aims to foster a stablecoin ecosystem that aligns with regulatory standards and broadens use cases.

The USDG stablecoin enters a market currently dominated by Tether (CRYPTO:USDT) with a 68% share and a $120 billion circulation, followed by Circle’s USDC at 20% with a $35 billion market share.

While technical specifications for USDG are yet to be disclosed, this new stablecoin aims to differentiate itself by focusing on regulated, transparent operations within a competitive stablecoin landscape.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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