Paxos launches stablecoin USDG on open network Global Dollar Network

Stablecoin issuer Paxos has collaborated with Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, and Robinhood to launch the new stablecoin network Global Dollar Network, with the newly issued stablecoin USDG, approved by regulators in Singapore, as its core development.

Global Dollar Network, a Gathering of Industry Giants

According to its press release, the Global Dollar Network is an open network aimed at accelerating the use of global stablecoins. Initial partners such as Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood are integrating resources and expertise to increase stablecoin adoption and expand real-world use cases. Partners including custodians, exchanges, payment fintech companies, merchants, protocols, credit cards, banks, and investment platforms can join this network to support innovation in global currency flow. However, it is currently open only to qualified participants.

Paxos emphasizes that many stablecoins currently do not meet the standards required by global enterprises and consumer protection regulations. The outdated business models impose high costs on the blockchain ecosystem. The Global Dollar Network aims to change the market by providing a trusted stablecoin and offering corresponding economic benefits to all partners.

Paxos Expanding Stablecoin Offerings Outside the U.S.

As a professional stablecoin issuer, Paxos has collaborated with Binance to issue BUSD, partnered with PayPal to launch PayPal USD PYUSD, and issued Pax Dollar USDP on Solana.

Outside the U.S., Paxos International, a subsidiary of Paxos based in the United Arab Emirates, introduced a yield-bearing stablecoin in June - Lift Dollar USDL. USDL is issued by Paxos International, a regulated entity under the Abu Dhabi Global Market ADGM Financial Services Regulatory Authority FSRA, to eligible consumers in global markets. Using Ethereum smart contracts, the daily yield generated by its reserves is distributed to qualifying wallet addresses.

Paxos issues the yield-bearing stablecoin USDL, with reserve yields automatically distributed to wallets daily.

Development of USDG Under Singapore Regulation

Singapore has become the third market where Paxos and its related entities are authorized to issue stablecoins, following the United States and the United Arab Emirates.

Paxos recently announced the launch of USDG, a U.S. dollar-backed stablecoin, following the stablecoin framework introduced by the Monetary Authority of Singapore MAS in August 2023. Approved by MAS in July this year, USDG has been issued on Ethereum. Cash management and reserve custody for USDG are handled by DBS Bank, the largest bank in Southeast Asia by asset size.

PAXOS collaborates with DBS once again to launch the new stablecoin USDG, driving the development of stablecoins.

The collaboration of the Global Dollar Network with many industry giants also highlights Paxos' attempt to establish a different niche market in Singapore after the failure of BUSD, taking a different path from the other two stablecoin giants, Tether and Circle.