Key players in traditional finance and cryptocurrency sectors, including Robinhood, Galaxy Digital, Kraken, and Paxos, have joined forces to support the new stablecoin USDG.

Consortium Formation for USDG Support

On November 5, Paxos announced the creation of an 'open network' aiming to accelerate the adoption and use of stablecoins globally. The consortium includes companies like Robinhood, Galaxy Digital, Kraken, among others.

Features of the USDG Stablecoin

The USDG stablecoin was launched by Paxos on November 1 and is currently available only on the Ethereum blockchain. However, Paxos intends to expand its availability across other chains as regulations evolve. USDG is issued from Singapore, complying with the Monetary Authority of Singapore's upcoming stablecoin framework. The reserves backing USDG are managed by Singapore's largest banking institution, DBS Bank.

Outlook and Competition in the Stablecoin Market

USDG and its Global Dollar Network enter a market largely dominated by two major stablecoins: Tether (USDT) and Circle's USD Coin (USDC), which hold the majority of the stablecoin market share on Ethereum. Paxos' primary digital asset offerings, including PayPal USD, Pax Dollar, and Pax Gold, reinforce its ambition to expand its presence in the stablecoin market.

The new USDG stablecoin, supported by major financial and crypto companies, promises to drive the development of a new market segment through diverse uses and robust reserve backing.