Catenaa, Wednesday, November 13, 2024-A consortium of leading cryptocurrency firms, including Robinhood, Kraken, and Galaxy Digital, has unveiled a new stablecoin network, the Global Dollar Network.
The initiative, aimed at boosting the global usage of stablecoins, features the newly introduced USDG stablecoin, pegged to the U.S. dollar.
The USDG token, issued from Singapore by Paxos, is designed to maintain a stable value, offering protection from the volatility that typically impacts cryptocurrencies like Bitcoin.
This move is part of a broader effort to promote digital assets that can bridge the gap between traditional currencies and the evolving crypto market. The Global Dollar Network seeks to provide economic benefits for its members and incentivize the global adoption of stablecoin technology.
Paxos CEO Charles Cascarilla emphasized the inclusive nature of the network, stating that it will return almost all rewards to participants and be open to anyone who wants to join.
Along with Robinhood, Kraken, and Galaxy Digital, the network includes partners such as Anchorage Digital, Bullish, and Nuvei.
Despite the new initiative, USDG faces significant competition. Tether and USD Coin dominate the market, controlling nearly 90% of the total stablecoin market capitalization.
The network’s success will depend on its ability to carve out a foothold in this concentrated space.
As the US government shows increasing openness to digital assets, the timing of this launch signals growing confidence in the future of stablecoins.
