Paxos announced the launch of a Global Dollar Network, partnering with industry giants such as Kraken, Robinhood, Galaxy Digital, Anchorage Digital, Bullish and Nuvei.
Paxos announced the launch of a Global Dollar Network, partnering with industry giants such as Kraken, Robinhood, Galaxy Digital, Anchorage Digital, Bullish and Nuvei.
At the heart of this new network is USDG, a new stablecoin from Paxos that complies with the Monetary Authority of Singapore’s upcoming stablecoin regulations. What sets USDG apart is an unparalleled yield-sharing model whereby participants driving adoption receive returns generated from the reserve assets, making the ecosystem fair for all its stakeholders.
"Stablecoins have been proven to offer a bridge between traditional finance and cryptocurrencies, enabling faster, lower cost and more efficient transactions,” Johann Kerbrat, general manager and vice-president of Robinhood Crypto said. “We're pleased to support the Global Dollar Network's efforts to expand these opportunities, which align with our commitment to making financial access easier and more inclusive.”
During the limited invite-only launch phase, select financial institutions will be able to build the first and most innovative solutions using the USDG token. Anchorage Digital's CEO Nathan McCauley stated that institutions will have "fast peer-to-peer and cross-border transactions and the ability to earn rewards on stablecoin deposits."
DBS Bank, the largest banking institution in Southeast Asia, has come on board to handle cash management and custody of the reserves for USDG. The stablecoin's initial availability on platforms from Anchorage Digital, Galaxy Digital, Kraken and Paxos is set to go into wider distribution through further partners.
Paxos CEO Charles Cascarilla puts the network in a bigger perspective. He stated that this initiative is about "replatforming the financial system." He said that the “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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