USDG Stablecoin Launches with Backing from Robinhood, Kraken, and Paxos"

In Brief:

The new USDG stablecoin, issued by Paxos in Singapore, is supported by major crypto firms like Robinhood, Kraken, and Paxos, aligning with Singapore's upcoming stablecoin framework.

Income from USDG's reserves will be distributed among partners like Anchorage Digital and Galaxy Digital, rewarding activities that boost network utility.

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USDG Stablecoin Launches with Backing from Robinhood, Kraken, and Paxos

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A new stablecoin, the Global Dollar (USDG), has been launched with support from major players in the cryptocurrency industry, including Robinhood, Kraken, and Paxos. Issued out of Singapore by Paxos, USDG aligns with the Monetary Authority of Singapore's upcoming stablecoin framework, ensuring regulatory compliance.

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Global Dollar Network Partners

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The Global Dollar Network, comprising Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood, aims to promote USDG's adoption by sharing income derived from its reserves. This yield-sharing model sets USDG apart from traditional stablecoins like Tether (USDT) and Circle's USDC, which retain all interest from reserves.

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Paxos CEO Charles Cascarilla emphasized the community-focused nature of USDG, stating, "We're distributing something like 97% of the economics." Participants are rewarded for activities that enhance the network's utility, creating a thriving ecosystem.

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DBS Bank, Southeast Asia's largest bank by assets, will manage cash and custody USDG reserves. The stablecoin is available in the U.S. through partners like Anchorage, operating in 48 states.

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