Global Dollar (USDG) Stablecoin Launched by Industry Giants

Major players in the digital asset industry, including Robinhood, Paxos, Kraken, Nuvei, Bullish, Anchorage, and Galaxy Digital, have partnered to launch a new stablecoin called the Global Dollar (USDG). The stablecoin network, known as Global New Dollar, aims to “accelerate stablecoin usage worldwide.”

According to a press release, USDG is built on the Ethereum (ETH) blockchain and focuses on expanding the adoption of blockchain-based fiat currencies globally. The project invites a wide range of market participants to join, including custodians, exchanges, payment fintechs, merchants, protocols, card networks, banks, and investment platforms.

Read also: Stablecoins and Blockchain Drive Demand for US Treasuries: Report

Arjun Sethi, co-CEO of the Kraken cryptocurrency exchange, argues that a lack of regulation in the stablecoin sector has hindered the industry from reaching its full potential. Sethi believes the Global New Dollar network offers a “more equitable model” to drive stablecoin adoption.

The USDG stablecoin is currently accessible to users of the participating companies. Distribution partners will soon offer the cryptocurrency more widely. DBS Bank, Southeast Asia’s largest bank by assets, will serve as the primary banking partner at launch, providing cash management and custody of USDG reserves.

A Crowded Stablecoin Market

While these companies are developing USDG, other stablecoin projects are also nearing launch. Ripple, the company behind the XRP Ledger, plans to introduce its own stablecoin, RLUSD, positioning it as a competitor to Circle USD (USDC) and Tether USD (USDT).

Data from CoinMarketCap shows that the top three stablecoins by market capitalization are USDT ($120 billion), USDC ($35 billion), and DAI ($5.3 billion). First Digital USD (FUSD) and USDD hold the fourth and fifth spots with market caps of $2.4 billion and $762 million, respectively.