New Regulation-Compliant Dollar Stablecoin Supported by Major Crypto Firms
A prominent group in the crypto industry introduces a stablecoin focused on compliance and community benefits.
New Regulation-Compliant Dollar Stablecoin Supported by Major Crypto Firms
A prominent group in the crypto industry introduces a stablecoin focused on compliance and community benefits.
Overview
The new Global Dollar (USDG) stablecoin is positioned as a regulation-friendly asset made possible through partnerships with major players including Robinhood, Kraken, and Paxos. This initiative aims to yield returns to firms that aid in the promotion of USDG and its ecosystem.
USDG is issued by Paxos in Singapore and aligns with standards set by Singapore's Monetary Authority.
Key Facts
- Income from the USDG reserves will be shared among partners which include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.
- Paxos CEO Charles Cascarilla emphasized the community benefits, stating: “This is meant to really be a community token.” (Translation: Esto está destinado a ser realmente un token de comunidad.)
“Everyone can join the Global Dollar Network and earn rewards for their participation,” he explained, differentiating USDG's model from its competitors.
Stablecoins dominate the market, with Tether (USDT) leading as the largest. Unlike USDG, Tether and Circle’s USDC do not share their reserve interest with users.
Future Outlook
The initiative recognizes the importance of community participation, hoping to enhance the use and utility of the USDG in the emerging cryptocurrency landscape. DBS Bank, Southeast Asia's largest bank by assets, will also be integral to the management of USDG's cash and reserves.
