Paxos has launched a new stablecoin called the Global Dollar Network (USDG). The new token is the result of a collaboration with several exchanges, including Bullish, Kraken, Robinhood, and other prominent crypto companies.
In 2024, many new stablecoins emerged, so the market cap for dollar-pegged tokens is now close to $180 billion.
Global Dollar Network joins the stablecoin race
On Tuesday (5), Paxos announced the launch of the Global Dollar Network (USDG). The goal is to accelerate the global use of stablecoins. The launch of USDG has the support of several industry giants, including the company itself, Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei and Robinhood.
Read more: What is a stablecoin? A beginner’s guide
The company plans to issue USDG from Singapore. However, the token will be compliant with upcoming stablecoin regulations by the Monetary Authority of Singapore.
USDG will initially be available on Ethereum, but Paxos plans to implement it on other blockchains in the future. The company noted that the Global Dollar Network will reward almost all returns to its participants.
Stablecoins are reshaping the financial system and revolutionizing how people interact with U.S. dollars and payments. However, the leading stablecoins are unregulated and retain their entire reserve economy. The Global Dollar Network will return virtually all rewards to participants and is open for anyone to join. It is designed to incentivize the global use of stablecoins and accelerate the adoption of this technology across society, said Paxos CEO and Co-Founder Charles Cascarilla.
In a previous announcement in late October, Paxos mentioned that DBS Bank, Southeast Asia’s largest bank by total assets, would be the lead banking partner on the project. The bank will manage the cash and custody of USDG. The stablecoin will be backed by US dollars, short-term US Treasuries, and other cash equivalents.
Stablecoin Market Cap: Source: IntoTheBlock
Currently, the market cap of stablecoins is close to $180 billion. Tether (USDT) alone accounts for almost 67% of that at $120 billion.
Its market share continues to grow into 2024. Tether recently reported record profits of over $2.5 billion in the third quarter, with the majority coming from gains on US government bonds.
Read More: Discover the best stablecoins for November 2024
In addition to USDG, several other stablecoins have also been launched recently, including RLUSD by Ripple, UStb by Ethena, USDS by Sky, and a synthetic stablecoin by DWF.
The article Paxos launches USDG, a stablecoin pegged to the US dollar appeared first on BeInCrypto Brasil.
