Stablecoin

Major

Pax Dollar

PayPal USD

Global Dollar

On November 5, prominent crypto and financial institutions, including Robinhood, Galaxy Digital, Kraken, and Paxos, <a href="https://paxos.com/blog/introducing-global-dollar-network-an-open-network-to-accelerate-and-reward-global-stablecoin-adoption-driven-by-anchorage-digital-bullish-galaxy-digital-kraken-nuvei-paxos-and-robinhood/" rel="noopener noreferrer nofollow">joined</a> together to form a consortium aimed at supporting a new stablecoin pegged to the U.S. dollar. This stablecoin,<a href="https://thecoinrise.com/paxos-floats-new-stablecoin-usdg-in-singapore/" rel="noopener noreferrer nofollow"> dubbed USDG, was launched by blockchain infrastructure firm Paxos</a> on November 1 and is currently available on the Ethereum network, with plans to expand to other blockchains as regulatory frameworks evolve.
Paxos states that the Global Dollar Network, designed to foster USDG’s adoption, is structured to drive a fairer and more competitive stablecoin market. Kraken’s co-CEO, Arjun Sethi, also highlighted in the announcement that limited competition in regulated stablecoins has held back the industry, and USDG aims to change this by making the market more inclusive.
“USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases,” Sethi remarked.
<h2 id="span-style-font-weight-400-dbs-bank-backs-span-span-style-font-weight-400-paxos-stablecoin-span">DBS Bank Backs Paxos Stablecoin</h2>
Paxos has chosen Singapore as the issuing location for USDG, taking advantage of the city-state’s robust regulatory framework. The Monetary Authority of Singapore’s (MAS) stablecoin guidelines further provide a compliance path that Paxos claims aligns well with their new offering.
The stablecoin supports 1:1 backing by the U.S. dollar, with reserves held by DBS Bank, Singapore’s largest banking institution, ensuring holders can redeem tokens for fiat securely. Reserves contain dollar deposits, short-duration U.S. government securities, and other cash equivalents, adding a layer of reliability to the token.
Paxos is no stranger to the stablecoin market, with its other offerings including <a href="https://thecoinrise.com/moonpay-now-supports-paypals-stablecoin-pyusd/" rel="noopener noreferrer nofollow">PayPal USD (PYUSD</a>), Pax Dollar (USDP), and Pax Gold (PAXG). According to Ronak Daya, Paxos’ head of product, the partnership with DBS will facilitate the scalable use of stablecoins at an enterprise level, further integrating digital assets into the financial ecosystem.
<h2 id="span-style-font-weight-400-entering-a-crowded-market-span">Entering a Crowded Market</h2>
USDG’s launch enters a competitive market where major players like Tether (USDT) and Circle’s USD Coin (USDC) dominate. According to <a href="https://defillama.com/stablecoins/Ethereum" rel="noopener noreferrer nofollow">data</a> from DeFiLlama, these two giants command a substantial share of the stablecoin supply on Ethereum, with Tether holding 56% and USDC 27%.
The Global Dollar Network, therefore, aims to capture attention in a market heavily influenced by these incumbents, leveraging the combined reach of its consortium members to drive adoption and support global transactions. 
The post <a href="https://thecoinrise.com/major-finance-players-join-forces-to-launch-paxos-usdg-stablecoin-network/" rel="noopener noreferrer nofollow">Major Finance Players Join Forces to Launch Paxos USDG Stablecoin Network</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Major Finance Players Join Forces to Launch Paxos USDG Stablecoin Network

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