Blockchain and tokenization infrastructure platform Paxos announced on Thursday the launch of the U.S. dollar stablecoin Global Dollar (USDG). DBS Bank will serve as its main banking partner, responsible for the cash management and custody of USDG reserves.
According to the press release, USDG is substantially in line with the Monetary Authority of Singapore’s (MAS) upcoming stablecoin framework, which is designed to support the needs of regulated institutions that maintain higher operating standards. Paxos is required to hold high-quality liquid assets to support USDG, including U.S. dollar deposits, short-term U.S. Treasury bonds, and other similar cash equivalents, to ensure that the stablecoin remains 1:1 anchored to the U.S. dollar and allows consumers to redeem it at any time as legal tender.
The issuer of USDG, Paxos Digital Singapore, is the Singapore branch of Paxos and is regulated by the Monetary Authority of Singapore. Paxos Global, another Paxos affiliate, will work with global exchanges, wallets and platform players to distribute USDG to individuals and institutions.
USDG has been issued on the Ethereum blockchain today and will be issued on more blockchains shortly.
(1/4) Today marks an exciting milestone in Paxos’ history. We’re pleased to introduce @global_dollar, the latest US dollar-backed stablecoin issued by Paxos. This is the 6th trusted digital asset from Paxos and its affiliates.View the official press release here:… pic.twitter.com/G7fb9Ny9bT
— Paxos (@Paxos) October 31, 2024
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