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- The Global Dollar is issued out of Singapore by Paxos and is “substantially compliant” with the MAS
- Tether’s USDT stablecoin accounts for more than 75% of the market
- Kraken’s co-founder said there is a “lack of competition” in the stablecoin market
A group of cryptocurrency and financial technology companies have introduced a joint stablecoin, the Global Dollar (USDG), to accelerate global stablecoin adoption.
Initial partners of the Global Dollar Network include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood. According to an announcement from Paxos, the Global Network is “revolutionizing” the stablecoin market with a “trusted stablecoin that provides proportionate economic benefits to all partners.”
Pegged to the US dollar, the USDG stablecoin is issued out of Singapore by Paxos and is “substantially compliant” with the Monetary Authority of Singapore’s upcoming stablecoin framework, the announcement noted.
The introduction of the USDG stablecoin comes at a time when Tether’s USDT and Circle’s USDC stablecoins make up a majority of the stablecoin market. In September, it was reported that USDT accounted for more than 75%.
More competition needed
It’s this “lack of competition” in the stablecoin market that’s stopping the “industry from reaching its full potential,” according to Arjun Sethi, Co-CEO at Kraken.
“USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases, “Sethi added.
Charles Cascarilla, CEO and co-founder of Paxos, said that stablecoins are changing “how people interact with US dollars and payments,” adding:
“However, the leading stablecoins are unregulated and retain all the reserve economics. Global Dollar Network will return virtually all rewards to participants and is open for anyone to join.”
“It is designed to incentivize global stablecoin usage and accelerate societal-wide adoption of this technology.”
Users of Anchorage Digital, Galaxy Digital, Kraken, and Paxos can get USDG right away; however, USDG will soon be available across all named distribution partners. DBS Bank, Southeast Asia’s largest bank, will serve as the primary banking partner at launch for cash management and custody of USDG reserves.