A collaboration of major players in the cryptocurrency industry is supporting a new stablecoin called the Global Dollar (USDG), with a focus on regulations and returning yield to those who help drive its adoption. The initial partners of the Global Dollar Network include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.
The USDG stablecoin is issued in Singapore by Paxos and is compliant with the Monetary Authority of Singapore’s stablecoin framework. Paxos CEO Charles Cascarilla emphasized that the Global Dollar Network is designed to be a community token, with rewards distributed to participants who contribute to the network’s growth. This is a departure from other stablecoins that retain all interest earned on reserves.
While stablecoins like Tether and Circle dominate the market, the USDG aims to share income generated from its reserves with network participants based on their contributions to liquidity and connectivity. This incentivizes firms to engage in activities that enhance the utility of the network.
The USDG stablecoin is accessible in the U.S. through distribution partners like Anchorage, which operates in all 50 states. DBS Bank, the largest bank in Southeast Asia, will serve as the primary banking partner for managing cash and custody of USDG reserves at launch.
Overall, the collaboration behind the USDG stablecoin represents a shift towards a more inclusive and community-driven approach to stablecoin economics. By rewarding participants for activities that support network growth, the Global Dollar Network aims to create a thriving ecosystem that benefits all stakeholders involved.
