- The Global Dollar Network launched to reward global stablecoin adoption.
- Major crypto firms collaborated to promote Paxo’s USDG stablecoin.
What happened
Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood have unveiled the Global Dollar Network. This network combines the power of major players to encourage stablecoin adoption on a global scale. It will utilize Paxos’ new stablecoin, the Global Dollar (USDG), aligned with Singapore’s planned stablecoin regulations. USDG aims to return yield on reserve assets to users who promote its adoption.
USDG is intended to return yield on reserve assets to participants that contribute to its adoption. The network has launched an invite-only phase. It only allow selected custodians, exchanges, payment processors, merchants, and banks to create new USDG solutions.
Initial distribution is available on the Anchorage Digital, Galaxy Digital, Kraken, and Paxos platforms, with plans to increase access through more partners in the coming months. Charles Cascarilla, CEO and Co-Founder of Paxos, said: “Stablecoins are replatforming the financial system and revolutionizing how people interact with US dollars and payments. However, the leading stablecoins are unregulated and retain all the reserve economics. Global Dollar Network will return virtually all rewards to participants and is open for anyone to join. It is designed to incentivize global stablecoin usage and accelerate societal wide adoption of this technology.”
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Why it’s important
The launch of Paxos’ USDG, a new global stablecoin network, signifies a major advancement in the quest for stable, accessible digital currencies. Paxos created USDG to address crypto volatility, offering a dependable, dollar-pegged stablecoin that can facilitate safer everyday transactions. By providing a consistent value and improved transparency, USDG makes it easier for users to adopt digital payments without the usual risks of price fluctuation.
This new stablecoin network can also enhance cross-border transactions, with faster processing and reduced costs appealing to international businesses and remittance markets. USDG’s alignment with regulatory standards encourages trust among consumers, financial institutions, and governments, potentially increasing overall adoption. As Paxos competes with traditional financial services, it pushes for innovation and positions USDG as a universal, digital currency for a borderless economy. With USDG, Paxos offers a platform that could transform how people use money worldwide, paving the way for a more inclusive and digitally-driven financial future.
