A coalition of leading traditional and cryptocurrency firms has come together to launch the Global Dollar Network, an open framework designed to accelerate the global use of stablecoins. Key players in this initiative include Robinhood, Galaxy Digital, Kraken, and Paxos.
The Global Dollar Network
At the core of the network is the Global Dollar (USDG), a stablecoin pegged to the US dollar. The USDG is backed 1:1 by US dollar deposits, short-duration US government securities, and other cash equivalents. DBS Bank, Singapore's largest bank, will manage the USDG reserves.
Addressing Challenges in the Stablecoin Market
The launch of Global Dollar Network comes at a time when many existing stablecoins struggle to meet business and consumer standards. GDN aims to address these challenges by offering a stablecoin with tangible economic benefits for all partners.
Regulatory Framework and Additional Solutions
USDG will be issued out of Singapore and conform to the country's upcoming stablecoin framework. Paxos also offers other digital assets, including PayPal USD, Pax Dollar (USDP), and Pax Gold (PAXG).
The Global Dollar Network represents a new chapter in stablecoin development, offering an innovative approach that could reshape the financial industry landscape.
