Singapore, Wednesday, November 06, 2024 – A consortium of prominent cryptocurrency firms, including Robinhood, Kraken, and Paxos, has introduced a new stablecoin, the Global Dollar (USDG), structured to distribute reserve-based income among its participants.
Issued out of Singapore by Paxos, the USDG stablecoin aligns closely with the Monetary Authority of Singapore’s upcoming regulatory framework for stablecoins.
Key founding members of the Global Dollar Network include Anchorage Digital, Galaxy Digital, Bullish, Nuvei, Paxos, and Robinhood. Income generated from USDG’s reserve assets, primarily U.S. Treasuries, will be shared among these partners, rewarding activities that expand USDG’s network reach and liquidity.
The stablecoin landscape has long been dominated by Tether (USDT) and Circle’s USDC, which do not share reserve income with partners. USDG’s yield-sharing structure offers an alternative, potentially shifting the competitive dynamic in the stablecoin market. Initially available in the US through Anchorage, USDG has DBS Bank as its primary banking partner, supporting cash management and reserve custody.
With significant support from major crypto firms, USDG aims to broaden stablecoin utility, potentially setting a new standard in the market.
