Paxos launches USDG, stablecoin supported by “big” exchanges

By Davide Grammatica

Paxos has launched the new stablecoin Global Dollar Network (USDG), in partnership with several crypto companies

The arrival of USDG stablecoins

The new USDG stablecoin is the result of a collaboration between numerous crypto and institutional entities, which, thanks to the leadership of issuer Paxos, aims to compete with the biggest players in the industry.

Global Dollar Network, so far on Ethereum, enjoys the support of crypto realities such as Bullish, Kraken and Robinhood, as well as leading institutional realities such as DBS Bank , the largest bank in Southeast Asia, to which the custody of reserves is delegated.

USDG’s challenge is to carve out a concrete space within a market that has reached a capitalization of more than $180 billion, at a time when more and more stables seem intent on challenging the dominance of USDT and USDC.

A new stablecoin challenges USDT

“Stablecoins are revitalizing the financial system and revolutionizing the way people interact with dollars,” said Charles Cascarilla, ceo of Paxos. “USDG is designed to incentivize the global use of stablecoins and accelerate the adoption of this technology across society.”

Backing the stablecoin will be U.S. dollars and U.S. government bonds, and Paxos has reportedly promised a return to annuity holders of the underlying assets, in full compliance with new crypto regulations in Singapore, from where USDG will be issued.

This strategy is intended to aim to at least somewhat undermine the primacy of Tether (USDT), which alone accounts for nearly 67 percent of stable market share. This is USDG’s challenge, as well as that of newer entities such as Ripple ‘s RLUSD or Ethena‘s UStb.