Major crypto firms launched USDG, an Ethereum-based stablecoin, to boost global blockchain-based digital currency adoption.
DBS Bank partners with the USDG project, providing custody and cash management for the stablecoin’s reserves.
Ripple’s upcoming RLUSD stablecoin aims to compete with top market stablecoins like Tether (USDT) and Circle USD (USDC)
A group of major players in the cryptocurrency industry has announced the launch of a new stablecoin, the Global Dollar (USDG), aiming to accelerate stablecoin usage worldwide. This partnership, which includes companies such as Robinhood, Paxos, Kraken, Nuvei, Bullish, Anchorage, and Galaxy Digital, is working toward developing a stable and accessible digital dollar backed by Ethereum’s blockchain technology.
Notably, the project known as the Global New Dollar network, brings together a wide range of participants, including custodians, exchanges, and fintech companies, with the intention of promoting blockchain-based fiat currency adoption on a global scale.
https://twitter.com/NateGeraci/status/1853563209598239163 USDG Set to Improve Stablecoin Adoption
Currently, with the USDG stablecoin available to users of participating companies, the network aims to make digital dollars accessible on a broader scale. The intention is to increase stablecoin adoption and improve accessibility by inviting additional partners such as banks, investment platforms, and payment services to participate.
According to Arjun Sethi, co-CEO of the Kraken cryptocurrency exchange, the project presents a “more equitable model” that aims to foster stablecoin adoption across the globe. Sethi also noted that limited regulation in the stablecoin sector has created barriers, hindering the industry from reaching its full potential.
Intriguingly, DBS Bank which is Southeast Asia’s largest bank by assets, is on board as the primary banking partner at launch. This partnership will allow DBS to handle the management and custody of USDG reserves, positioning the bank as a key player in the stablecoin ecosystem.
Ethereum-Based Technology and Financial Inclusion
In addition, The USDG stablecoin is built on the Ethereum (ETH) blockchain, known for its widespread adoption and smart contract capabilities. By leveraging Ethereum’s network, the Global New Dollar aims to offer a stable and secure digital dollar that could enhance financial inclusion. This network targets not only cryptocurrency enthusiasts but also the unbanked population and individuals seeking alternatives to traditional banking.
However, the partnership expects Ethereum’s robust technology to enable smoother cross-border transactions, faster remittances, and easier access to digital payments, thus bringing financial resources to underserved populations worldwide.
USDG Enters a Competitive Stablecoin Market
Moreover, the launch of USDG comes as competition in the stablecoin sector intensifies. Ripple’s RLUSD, another stablecoin, is expected to launch soon, with Ripple planning to position it as a competitor to Circle USD (USDC) and Tether USD (USDT).
Currently, Tether holds the top spot in stablecoin market capitalization with $120 billion, followed by USDC at $35 billion, and DAI at $5.3 billion, according to CoinMarketCap data. Ripple’s forthcoming stablecoin project, along with USDG, signals a rising interest in stable digital currencies that provide an alternative to fiat-based payment systems.
Therefore, USDG’s release is positioned to reshape the stablecoin landscape. As stablecoin adoption continues to grow, industry leaders are focusing on bridging the gap between traditional financial systems and blockchain-based solutions.
The post Global Dollar (USDG) Stablecoin Unveiled by Industry Titans appeared first on Crypto News Land.
