A consortium of cryptocurrency and traditional finance companies, including Robinhood, Galaxy Digital, Kraken, and Paxos, has been established to back the latter’s newest stablecoin offering, the Global Dollar (USDG).
According to a statement released on November 5 by Paxos, the newly established “open network”, called “The Global Dollar Network,” aims to promote the global adoption and utilization of the stablecoin.
According to the announcement, the network will harness the members’ collective strengths to drive the development of both crypto and broader financial solutions involving USDG. Paxos claimed the network seeks to reshape the stablecoin landscape by offering a solution meeting global enterprise demands while fostering collaborative innovation.
Kraken co-CEO Arjun Sethi stated,
“The regulated stablecoin market has suffered from a lack of competition, hindering the industry’s growth. USDG changes this landscape with a more equitable model that will attract mainstream participants and accelerate the development of new stablecoin use cases.”
Johann Kerbrat, General Manager and Vice President of Robinhood Crypto commented on the initiative, stating,
“Stablecoins have demonstrated their ability to connect traditional finance with cryptocurrencies, facilitating quicker, more cost-effective, and efficient transactions. We are excited to back the Global Dollar Network’s efforts to broaden these opportunities, aligning with our mission to enhance financial accessibility and inclusivity.”
USDG, launched by Paxos on November 1, maintains a 1:1 backing with the U.S. dollar. The stablecoin was developed with Singapore’s DBS Bank to fully comply with the Monetary Authority of Singapore’s regulatory standards. Ronak Daya, Head of Product at Paxos, stated that DBS’s support was vital for driving enterprise-level adoption.
Currently, the stablecoin is only available on the Ethereum blockchain; however, Paxos has indicated plans to expand its availability to additional blockchains as regulatory frameworks develop. The stablecoin issuer also noted it plans to partner with global exchanges, wallets, and trading platforms to enhance the stablecoin’s accessibility.
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