Large crypto players like Robinhood, Kraken, and Paxos also are launching support for Global Dollar Stablecoin, or USDG for short. This Singapore-issued new stablecoin, USDG, aims to turbocharge the global stablecoin market. Through the Global Dollar Network, prominent industry partners will also help further drive USDG growth, including Anchorage Digital, Galaxy Digital, and Bullish.
These major players, in turn, receive yield for helping grow USDG. At USDG, the design has been considered compliance, and therefore, the stablecoin will be aligned with the impending regulations for stablecoins in Singapore. The USDG stablecoin network aspires to create a broad, solid presence worldwide by engaging top firms in cryptocurrency, influencing the future of the entire stablecoin ecosystem.
Paxos to Issue USDG in Line with Singapore’s Regulatory Framework
Paxos, which mints USDG, has designed the stablecoin to meet the upcoming Monetary Authority of Singapore regulations that will oversee the use of a stablecoin. Founding members of the Global Dollar Network include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood. Revenue sourced from the reserves of USDG will be shared among the said partners as an incentive to drive activity within the network.
Revenue Shared Among Global Dollar Network Participants
The major difference between the USDG stablecoin and industry giants like Tether and Circle is that it distributes the yield to support its participants. According to Paxos CEO Charles Cascarilla, USDG has been trying to invest more in building a community-driven stablecoin. Unlike other stablecoins, USDG’s income, generated from the U.S. Treasury reserves, will be given to the early partners as a reward for their effort in building connectivity and liquidity.
“We’re sharing 97% of the economics with our partners, which makes USDG unique among stablecoins,” Cascarilla said.
Partner Activity Drives Rewards
The Global Dollar Network rewards its partners directly for their work in growing USDG exposure and usage. Anchorage, for example, will provide access to USDG throughout the United States. Each partner brings value in unique ways of creating new exposure and usage of the stablecoin.
DBS Bank to Handle USDG Reserves
It has also onboarded DBS Bank, the largest bank in Southeast Asia, as USDG’s main banking partner. Under this partnership, DBS will be responsible for cash management and custody solutions for USDG’s reserves, extending robust support to USDG’s operation as a stablecoin.
With USDG, some of the biggest names in cryptocurrency joined this movement to reshape the landscape of stablecoins by directly rewarding ecosystem builders. USDG’s focus is on maintaining compliance with regulations while offering an alternative stablecoin that benefits the crypto community and network participants.
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