As a seasoned crypto investor with a knack for spotting potential, I find the recent development surrounding the Global Dollar Network intriguing. Having navigated through the crypto wilderness since the early days of Bitcoin, I’ve witnessed the rise and fall of countless projects. Yet, this consortium backed by industry giants seems to be on a promising trajectory.
A group consisting of well-known financial institutions like Robinhood, Galaxy Digital, Kraken, and Paxos, has come together in an alliance endorsing the recent US dollar-backed stablecoin.
On November 5th, Paxos, a company specializing in blockchain infrastructure, announced that they had developed a new “open platform” with the intention of expediting the global acceptance and utilization of stablecoins.
In his statement, Kraken’s co-CEO Arjun Sethi pointed out that the limited competition in the regulated stablecoin market has hindered its growth to its full extent. However, he highlighted that USDG challenges this status quo with a fairer model, which is expected to attract mainstream players into the ecosystem and speed up the development of innovative stablecoin applications.
The network serves the purpose of facilitating the worldwide acceptance of Paxos’ USDG stablecoin, which was introduced by the company on November 1st.
At present, USDP can only be found on the Ethereum blockchain, however, Paxos has indicated that they plan to make this stablecoin accessible across various platforms as regulatory conditions become more clarified.
As a researcher, I’m excited to share that Paxos, the renowned firm, will be launching its USDG stablecoin from Singapore. Notably, they assert that this digital currency aligns substantially with the Monetary Authority of Singapore’s future framework for stablecoins, which was set in motion back in August 2023.
Eligible organizations such as custodians, exchanges, and financial technology companies can become part of the Global Dollar Network through an invitation-only process.
The company mentioned that the reserves and management of this stablecoin’s U.S. dollar holdings will be handled by Singapore’s largest bank, DBS Bank. The USDG is backed at a ratio of 1:1 with the U.S. dollar in dollars held in savings accounts, short-term U.S. government bonds, and other liquid assets. This means that users can exchange their tokens for real money (fiat currency) whenever they wish.
As a researcher, I’m excited to share insights on the launch of USDG by Paxos. In a recent statement, their Head of Product, Ronak Daya, highlighted that the strategic partnership with DBS will pave the way for widespread adoption of stablecoins at an enterprise level.
Besides PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG), there are other digital assets that Paxos provides.
In a market mainly controlled by two leading stablecoin providers, Tether (USDT) and Circle’s USD Coin (USDC), the USDG stablecoin and its Global Dollar Network are about to debut. These two players currently hold significant control over 56% for Tether and 27% for USD Coin of the total stablecoin supply on Ethereum, as per DefiLlama’s data.
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2024-11-05 05:30