A range of traditional and cryptocurrency financial companies, including Robinhood, Galaxy Digital, Kraken, and Paxos, have formed a coalition supporting the latest stablecoin pegged to the US dollar.
In a statement on November 5, blockchain infrastructure company Paxos shared that this new 'open' network is designed to promote the acceptance and use of stablecoins worldwide.
Source: Paxos
The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential. USDG changes this with a fairer model, bringing mainstream participants into the ecosystem and promoting new use cases for stablecoins,” said Arjun Sethi, co-CEO of Kraken, in a statement.
The network is designed to support the global acceptance of Paxos' USDG stablecoin, officially launched on November 1.
USDG is currently only available on the Ethereum blockchain, but Paxos stated that the stablecoin will be deployed on other chains as regulations progress.
Paxos will issue the USDG stablecoin from Singapore, where the company states it will 'significantly comply' with the upcoming stablecoin framework of the Monetary Authority of Singapore, set to be established in August 2023.
Qualified organizations, including regulatory units, exchanges, and fintech companies, will be able to participate in the Global USD Network through invitation.
The company notes that the US dollar-backed stablecoin will be managed and reserved by Singapore’s DBS Bank, the largest banking organization in Singapore. USDG is fully backed at a 1:1 ratio with the US dollar through deposits, short-term US government securities, and other liquid assets, ensuring users can convert their tokens back to fiat currency.
Ronak Daya, head of product at Paxos, when discussing the launch of USDG, stated that the collaboration with DBS will encourage the acceptance of stablecoins at the enterprise level.
Other digital asset products that Paxos offers include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).
See also: MicroStrategy bets $42 billion on Bitcoin: Optimistic for shareholders
The USDG stablecoin and its Global USD Network will enter a market currently dominated largely by two major stablecoin issuers, Tether (USDT) and Circle's USD Coin (USDC), which hold 56% and 27% of the total stablecoin supply on Ethereum, according to data from DefiLlama.
USDT accounts for 69.53% of the total supply of $84 billion stablecoins on Ethereum. Source: DefiLlama
Stay tuned @TinTucBitcoin for the latest updates.
#tintucbitcoin #Write2Win #btc #binance #bitcoin $BTC $ETH $BNB
