Stablecoin

Dollar

Galaxy

Pax Dollar

Global Dollar

A coalition of leading traditional finance and cryptocurrency firms has come together to&nbsp;<a style="text-decoration:none" href="https://x.com/Paxos/status/1853561410615210003">launch</a> the Global Dollar Network, an open framework designed to accelerate the use of stablecoins across the globe. Key players in this initiative include Robinhood, Galaxy Digital, Kraken, and Paxos, all aiming to enhance the adoption and utility of stablecoins worldwide.
<div>
 <blockquote class="twitter-tweet">
 [1 / 4] Today, we’re launching Global Dollar Network (<a href="https://twitter.com/global_dollar?ref_src=twsrc%5Etfw">@global_dollar</a> ) — an open network to accelerate and reward global stablecoin adoption. Additional partners include <a href="https://twitter.com/Anchorage?ref_src=twsrc%5Etfw">@Anchorage</a>, <a href="https://twitter.com/Bullish?ref_src=twsrc%5Etfw">@Bullish</a>, <a href="https://twitter.com/galaxyhq?ref_src=twsrc%5Etfw">@galaxyhq</a>, <a href="https://twitter.com/krakenfx?ref_src=twsrc%5Etfw">@krakenfx</a>, <a href="https://twitter.com/Nuvei?ref_src=twsrc%5Etfw">@Nuvei</a> and <a href="https://twitter.com/RobinhoodApp?ref_src=twsrc%5Etfw">@RobinhoodApp</a>. View the press release ⬇️…— Paxos (@Paxos) <a href="https://twitter.com/Paxos/status/1853561410615210003?ref_src=twsrc%5Etfw">November 4, 2024</a>
 </blockquote> 
</div>
&nbsp;
Participants in the consortium may include custodians, exchanges, payment fintechs, merchants, protocols, card networks, banks, and investment platforms. The advisory committee, comprising representatives from partner organizations, will guide the direction of the network.&nbsp;
<h2 dir="ltr" id="span-span-the-global-dollar-span-span">The Global Dollar</h2>
At the core of the network is the Global Dollar (USDG), a stablecoin pegged to the United States dollar. The USDG is backed 1:1 by US dollar deposits, short-duration US government securities, and other cash equivalents. This structure reportedly ensures that users can redeem their USDG tokens for fiat currency, providing a secure and reliable digital asset.
&nbsp;
DBS Bank, Singapore's largest banking institution, will manage the US dollar reserves for USDG, adding a layer of trust and security.&nbsp;
<blockquote>
 "The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential,” Arjun Sethi, Co-CEO at Kraken, said. “USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases."
</blockquote>
<h2 dir="ltr" id="span-span-addressing-challenges-in-the-stablecoin-market-span-span">Addressing Challenges in the Stablecoin Market</h2>
The launch of the Global Dollar Network comes at a time when many existing stablecoins struggle to meet the standards required by businesses and consumers, according to a recent&nbsp;<a style="text-decoration:none" href="https://www.prnewswire.com/news-releases/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-302295847.html">statement</a> from the firms. Issues such as outdated business models and high transaction costs limit enterprise adoption and stifle innovation in the blockchain ecosystem.
&nbsp;
The Global Dollar Network aims to address these challenges by offering a stablecoin that provides tangible economic benefits to all its partners. By streamlining processes and reducing costs, the network seeks to create a more accessible and efficient environment for digital currency transactions.
<blockquote>
 “...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,” said, Charles Cascarilla, CEO and Co-Founder of Paxos. “It is designed to incentivize global stablecoin usage and accelerate societal wide adoption of this technology.”
</blockquote>
According to Paxos, its USDG stablecoin will be issued out of Singapore, which will conform to the Monetary Authority of Singapore's upcoming stablecoin framework.&nbsp;
&nbsp;
Paxos also offers other digital asset solutions, including PayPal USD, Pax Dollar (USDP), and Pax Gold (PAXG).&nbsp;

Robinhood, Kraken, and Other Crypto Firms Launch Global Stablecoin Network

Table of Contents

BSCN

Other articles published on Nov 11, 2024

MicroStrategy buys $2B in Bitcoin, boosts holdings to $23B

Cardano News Today: ADA Eyes Major Bull Run After 79% Rally

Ripple News: Can Kamala Harris Sell Donated XRP To Pay Campaign Debts? Legal Expert Answers

Bitcoin Foe Peter Schiff Made a Statement After the Big Surge: Assesses Scenario of US Government...

FTX Seeks Compensation in Major Lawsuits Against Binance and CEO Zhao

Quick Gains or Lasting Growth? A Tale of Two Cryptos: Dogwifhat vs Altcoin

Join our free newsletter for daily crypto updates!