Robinhood, along with Kraken and Paxos, has unveiled a Global Dollar network focused on stablecoins.
Crypto and traditional finance giants have collaborated to establish the Global Dollar Network, a compliant platform aimed at advancing stablecoin usage.
Robinhood, Galaxy Digital, Kraken, and Paxos, along with other crypto and finance companies, have established a consortium to endorse a new stablecoin linked to the U.S. dollar.
On Nov. 5, blockchain infrastructure provider Paxos disclosed that it specifically designed its “open network” to enhance stablecoin adoption and usage worldwide.
“The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential. USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases,” said Kraken co-CEO Arjun Sethi in the statement.
Paxos launched the USDG stablecoin on Nov. 1, supporting it with a network built to drive its global adoption.
Paxos confirmed that USDG is currently available exclusively on Ethereum, and it plans to support additional blockchains as regulations evolve.
According to Paxos, the company will issue the USDG stablecoin in Singapore and asserts that it is “substantively compliant” with the stablecoin regulations outlined by the Monetary Authority of Singapore in August 2023.
The Global Dollar Network will allow qualified entities like custodians, exchanges, and fintech firms to join by invitation.
The firm stated that Singapore’s largest bank, DBS, will reserve and manage the US dollar assets backing the stablecoin.
The 1:1 backing of USDG, supported by dollar deposits, short-term US government securities, and cash equivalents, guarantees that users can exchange their tokens for fiat currency.
Paxos’ head of product, Ronak Daya, stated that the partnership with DBS will promote enterprise-level adoption of stablecoins as they launch USDG.
Paxos features various digital asset products, which include PayPal USD, Pax Dollar (USDP), and Pax Gold (PAXG).
In mid-October, Paxos announced the launch of the Stablecoin Payments Platform, with Stripe as the first client. According to Paxos, this platform simplifies the process for businesses to accept stablecoins.
With Tether and Circle’s USD Coin controlling 56% and 27% of the stablecoin supply on Ethereum, the USDG stablecoin and its Global Dollar Network are set to launch in a highly competitive market.
