- Major crypto firms including Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood launch Global Dollar Network
- New USDG stablecoin aims to return most rewards to participants and allows additional partners to join
- DBS Bank will serve as primary banking partner for cash management and reserve custody
- USDG enters market dominated by Tether (68% share) and USDC (20% share)
- Paxos powers USDG, which complies with Singapore‘s upcoming stablecoin framework
Major Crypto Firms Unite to Launch USDG Stablecoin
Seven leading cryptocurrency and fintech companies announced the creation of the "Global Dollar Network" on November 5, introducing a new regulated stablecoin called USDG. The initiative brings together industry giants Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood in a collaborative effort to expand stablecoin adoption.
A Different Approach to Stablecoins
The USDG stablecoin distinguishes itself through its unique reward structure and regulatory compliance. "Global Dollar Network will return virtually all rewards to participants and is open for anyone to join," stated Charles Cascarilla, CEO and co-founder of Paxos.
The network selected Southeast Asia’s largest bank by assets, DBS Bank, as its primary banking partner, responsible for cash management and reserve custody operations.
Addressing Market Competition
Kraken co-CEO Arjun Sethi highlighted the current market limitations, stating that "USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases."
The initiative aims to address what Paxos CEO Charles Cascarilla described as a market where "leading stablecoins are unregulated and retain all the reserve economics."
Regulatory Compliance and Previous Experience
Paxos, which powers the new stablecoin, brings significant experience to the project despite previous regulatory challenges. The company previously managed the Binance BUSD stablecoin until February 2023, when SEC enforcement action forced it to stop issuing the asset. While the SEC dropped its investigation in July 2024, the experience likely influenced USDG’s strong focus on regulatory compliance.
The new stablecoin adheres to the upcoming Monetary Authority of Singapore’s stablecoin framework, positioning it for international regulatory acceptance.
Market Competition and Current Landscape
USDG enters a market currently dominated by established players:
- Tether (USDT): Controls 68% market share with $120 billion in circulation
- USDC: Holds 20% market share with $35 billion in circulation
- USDS (formerly DAI): Maintains 3% market share with $5.6 billion market capitalization
While specific technical details and initial supply figures for USDG remain undisclosed, the network continues to invite additional participants, including industry leaders, custodians, exchanges, payment firms, merchants, protocols, card networks, banks, and investment platforms.
The launch represents a significant development in the stablecoin sector, particularly given the combined resources and expertise of its founding members. Their focus on regulatory compliance and participant rewards could potentially influence the broader stablecoin ecosystem’s development.
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