A coalition of traditional financial and cryptocurrency companies has announced the launch of the Global Dollar Network, an open platform to accelerate global stablecoin usage.
Key Players in the Initiative
Robinhood, Galaxy Digital, Kraken, and Paxos are leading the new network to promote the spread and use of stablecoins. Anchorage, Bullish, Nuvei, and other companies also join as partners.
Role of USDG in the New Network
At the core of the network is the Global Dollar (USDG), a stablecoin pegged to the United States dollar. Singapore's DBS Bank will manage USDG's reserves, enhancing trust and security.
Addressing Challenges in the Stablecoin Market
The launch of the Global Dollar Network aims to solve issues faced by existing stablecoins, such as outdated business models and high transaction costs. The initiative promotes a fairer model that returns benefits to all network participants.
The platform aims to incentivize global stablecoin utilization, offering economic benefits to all stakeholders. Paxos plans to issue USDG from Singapore, aligning with local regulatory requirements.
