Updated: December 19, 2024
Key Takeaways
The Global Dollar Network promotes stablecoin adoption using Paxos’s USDG.
Robinhood, Kraken, and other major players collaborate on cross-border stablecoin solutions.
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Leading fintech and digital asset firms have launched the Global Dollar Network, an open network focused on promoting stablecoin adoption and advancing its real-world applications, according to a press release by Paxos.
The initiative brings together major industry players including Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.
The network will utilize Paxos’s new stablecoin, the Global Dollar (USDG), which complies with the Monetary Authority of Singapore’s upcoming stablecoin framework.
USDG is designed to return yield on reserve assets to participants who contribute to its adoption, encouraging the development of crypto and financial solutions using the token.
The Global Dollar Network aims to address shortcomings in the stablecoin market, such as high transaction costs and limited consumer protections.
“USDG upends the dynamic in the regulated stablecoin market,” said Kraken Co-CEO Arjun Sethi, emphasizing that USDG provides a more equitable model, which may attract broader institutional and mainstream participation.
The network has opened an invite-only phase for select custodians, exchanges, payment processors, merchants, and banks to develop new solutions using USDG.
“Fast peer-to-peer and cross-border transactions and the ability to earn rewards on stablecoin deposits” are key benefits for institutions, according to Nathan McCauley, CEO of Anchorage Digital.
DBS Bank, Southeast Asia’s largest bank, will provide cash management and custody services for USDG reserves.
Initial distribution is available on Anchorage Digital, Galaxy Digital, Kraken, and Paxos platforms, with plans to expand access through additional partners in the coming months.
Charles Cascarilla, CEO of Paxos, emphasized the network’s role in “replatforming the financial system” and empowering enterprises to integrate stablecoins seamlessly into their business models.
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