Global Dollar Network launches USDG stablecoin to improve financial inclusion, boost stablecoin adoption, and solve current market limitations.
In a significant development, leaders in fintech and digital assets announced the launch of the Global Dollar Network, a new initiative to accelerate the global adoption of stablecoins. According to the statement, the project brings together major industry players. These include Anchorage Digital, Bullish, Nuvei, Paxos, Galaxy Digital, Kraken, and Robinhood. These partners are now working together to promote the adoption of stablecoins. Additionally, they will extend the horizons of their practical application.
Global Dollar Network Aims to Solve Stablecoin Issues for Enterprises
The Global Dollar Network is intended to solve many of the issues that most current stablecoins experience. Most modern stablecoins lack the qualities and compliance with consumer protection standards that large-scale companies need.
Additionally, traditional business models and expensive solutions in the blockchain environment are the main reasons large companies have not actively used stablecoins. Consequently, the new network is proposed to address these problems by providing a stable and inexpensive stablecoin solution.
The initiative’s core is the Global Dollar (USDG), a stablecoin, a new Paxos asset operating out of Singapore. USDG also aligns with the Monetary Authority of Singapore’s new stablecoin guidelines, meaning better regulation. The network is designed to foster cooperation between various stakeholders. These include custodians, exchanges, payment fintech, merchants, banks, and investment platforms. They will advance the work on stablecoin-based financial solutions.
Industry Giants Back USDG to Improve Financial Inclusion and Blockchain Innovation
McCauley, the CEO of Anchorage Digital, spoke about the advantages of stablecoins for institutions, such as faster cross-border transfers and earnings on deposited stablecoins. He was interested in the Global Dollar Network’s ability to deliver these benefits to a larger audience.
Arjun Sethi, co-CEO of Kraken, stressed that there was no competition in the regulated stablecoin market, which limited its development possibilities. He views USDG as enabling stablecoin adoption for the masses and offering more opportunities for traditional actors.
Charles Cascarilla, CEO of Paxos, believes stablecoins are revolutionizing the use of U.S. dollars and payments. He thinks the Global Dollar Network is fairer because it returns 99% of the rewards to participants and is open to anyone.
Johann Kerbrat, GM & VP of Robinhood Crypto, noted that stablecoins are the intermediaries between conventional markets and crypto. Therefore, Robinhood’s support of the Global Dollar Network is to improve and increase the availability of financial services.
Tom Farley, the CEO of Bullish, also said that USDG stablecoins are critical to linking the traditional and crypto sectors. With regulation and blockchain effectiveness, Bullish can provide its customers with safe digital asset products.
USDG is now listed on Anchorage Digital, Galaxy Digital, Kraken, and Paxos. Furthermore, the firm is eager to add new partners in the near future. At its inception, USDG will be partnered with DBS Bank, the largest Bank in Southeast Asia, which will act as the custodian and manage USDG reserves’ cash.
Lastly, this collaboration is a significant leap towards a better, more integrated, effective, and stable digital financial environment.
