What is Global Dollar (USDG)?

Deep Dive

1. Regulatory Compliance & Backing

USDG is issued by Paxos Digital Singapore (regulated by MAS) and Paxos Issuance Europe (compliant with MiCA). Each token is backed 1:1 by cash reserves and short-term U.S. government securities, with monthly attestations for transparency. This dual regulatory alignment positions USDG as a trusted stablecoin for institutions and retail users in both Asia and Europe.

2. Global Dollar Network Incentives

The Global Dollar Network (GDN) is a consortium of 20+ partners—including Visa, Robinhood, and Kraken—that share revenue generated from USDG adoption. Partners earn up to 100% of yield from reserves held on their platforms, creating a collaborative ecosystem for expanding use cases like cross-border payments, remittances, and DeFi.

3. Technical Architecture

USDG operates across Ethereum (ERC-20), Solana (SPL), and Ink blockchains. The Solana integration enables sub-$0.001 transaction fees and near-instant settlements, targeting emerging markets and high-frequency payments. On Ethereum, it integrates with DeFi protocols like Kamino Lend, where USDG’s borrowing demand exceeds 75% of supplied liquidity.

Conclusion

USDG merges regulatory rigor with partner-aligned economics to drive stablecoin adoption in payments and DeFi. Its multi-chain design balances compliance (via MAS/MiCA) with scalability (via Solana). As stablecoin regulations tighten globally, could USDG’s shared-revenue model become the blueprint for sustainable ecosystem growth?