A consortium of leading crypto firms has launched the USDG stablecoin, a US dollar-pegged asset designed to foster global adoption through a collaborative network. Announced on Monday, the network’s founding partners include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.
The USDG, regulated by Singapore’s central bank framework and issued by Paxos, is initially available on the Ethereum blockchain and will share yield from reserve assets with those who help expand its use.
To drive adoption, the network launched the Global Dollar Network, inviting more participants across various sectors. According to Paxos CEO Charles Cascarilla, anyone can join the network and earn rewards based on their contributions to liquidity and ecosystem growth.
Kraken’s Co-CEO Arjun Sethi believes that the USDG will reshape the stablecoin market by providing a competitive, regulated option, attracting mainstream adoption, and enabling new use cases.
DBS Bank, one of Southeast Asia’s largest financial institutions, will act as the primary banking partner, handling USDG’s cash management and reserve custody. Unlike dominant stablecoins USDT and USDC, which retain interest from reserves, USDG will share reserve income among participants, promoting an ecosystem-driven approach to liquidity.
Cascarilla emphasized that this reward structure is designed to benefit contributors who actively support the network’s utility and expansion, cultivating a dynamic stablecoin ecosystem.
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