Catenaa, Thursday, July 03, 2025- A new eurozone-compliant stablecoin, the Global Dollar (USDG), has officially launched in the European Union, marking a major step forward for regulated crypto assets under the bloc’s Markets in Crypto-Assets Regulation.
The stablecoin, issued by Paxos through its Finland-based entity Paxos Issuance Europe OY, is now live on major platforms including Kraken, Gate, and SwissBorg.
Paxos said the token adheres to MiCA’s reserve, audit, and redemption standards, with a portion of USDG’s cash reserves held in European banks.
The move places USDG under oversight by Finland’s Financial Supervisory Authority and Singapore’s central bank. Paxos has pledged one-to-one redemption and transparency in reserve holdings, aligning with MiCA’s stringent regulatory framework.
The stablecoin forms part of the Global Dollar Network (GDN), a broader digital payments initiative involving over 20 financial firms, including Robinhood, Kraken, Anchorage Digital, and Mastercard. Paxos launched the GDN in late 2024 in partnership with Galaxy Digital and Robinhood to advance stablecoin infrastructure across jurisdictions.
Kraken’s global head of consumer Mark Greenberg said USDG stands out for its usability and growing adoption. Mastercard’s backing further signals rising interest from traditional finance in tokenized payment rails.
Paxos head of strategy Walter Hessert said demand for stablecoins continues to rise sharply. Total market capitalization for stablecoins has climbed to nearly $254 billion, up from $239 billion in June, according to DeFiLlama.
