New USDG Stablecoin Launched, Backed By Major Crypto Players Like Robinhood, Kraken, And Paxos
The new stablecoin also has Southeast Asia’s largest bank, DBS Bank, as its primary banking partner, providing cash management and custody services for USDG reserves.
A coalition of cryptocurrency heavyweights, including Robinhood, Kraken, and Paxos, has introduced a new stablecoin called the Global Dollar (USDG). The stablecoin, issued by Paxos from Singapore, is designed to be compliant with Singapore’s upcoming stablecoin regulations and aims to incentivize its adoption by offering yield to its network participants.
The initiative, dubbed the Global Dollar Network, brings together significant industry players: Anchorage Digital, Bullish, Galaxy Digital, Nuvei, Paxos, Robinhood, and Kraken. These partners will earn income generated from USDG’s reserve assets, primarily U.S. Treasuries, creating a financial incentive to drive adoption and liquidity. In contrast to traditional stablecoin models like Tether (USDT) and Circle (USDC), which retain all reserve earnings, USDG aims to share a significant 97% of reserve yield with network participants.
Paxos CEO Charles Cascarilla emphasized the community-focused nature of USDG, explaining that the Global Dollar Network allows partners to earn rewards by fostering stablecoin adoption through activities that contribute to ecosystem growth. Rewards will vary based on each partner's role in expanding the utility and reach of the stablecoin.
The new stablecoin also has Southeast Asia’s largest bank, DBS Bank, as its primary banking partner, providing cash management and custody services for USDG reserves. This strategic partnership aims to ensure compliance and stability in the management of USDG’s backing assets.
By sharing yield with its network members, USDG seeks to differentiate itself in a crowded stablecoin market, offering a fresh approach to participation and profit-sharing that could attract both institutional and corporate players.
