cryptoslate.com
Paxos has joined forces with major industry players to launch the Global Dollar Network, a strategic initiative aimed at accelerating stablecoin adoption worldwide.
The partnership, announced on Nov. 5, includes well-known names like Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, and Robinhood.
By pooling resources, these partners intend to drive stablecoin adoption and unlock new real-world applications. While these six companies are the initial collaborators, Paxos plans to welcome additional partners as the initiative expands.
Global Dollar Network
Paxos outlined that the Global Dollar Network addresses challenges common to most stablecoins, which often struggle to meet enterprise-level customer protection standards, limiting the potential for widespread enterprise use and affecting sectors like payments, custodial services, exchanges, and investment platforms.
The Global Dollar Network aims to tackle these gaps by providing a reliable stablecoin backed by an economically beneficial partnership structure. Leveraging the combined resources of its partners, the network is set to enhance both crypto and financial solutions for various sectors.
Overall, the group aims to transform the stablecoin market with a solution that meets the rigorous standards of global enterprises.
Charles Cascarilla, CEO and Co-Founder of Paxos, said:
“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.”
USDG
At the heart of this effort is a new USD-backed stablecoin called the Global Dollar (USDG).
USDG was designed to align with Singapore’s forthcoming stablecoin regulations. DBS Bank, Southeast Asia’s largest bank, will hold USDG reserves and also act as the primary banking partner, offering essential cash management services for the stablecoin.
Starting today, users on platforms such as Anchorage, Galaxy, Kraken, and Paxos can access USDG. The stablecoin is expected to roll out to the networks of other distribution partners soon.
Arjun Sethi, Co-CEO at Kraken, said:
“The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential. USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases.”