On November 5, 2024, a consortium of traditional finance and crypto companies, including Robinhood, Galaxy Digital, Kraken, and Paxos, announced the launch of a new stablecoin, USDG, pegged to the US dollar. This initiative aims to enhance the adoption of stablecoins globally.
The USDG stablecoin, introduced by Paxos on November 1, is currently available on the Ethereum blockchain, with plans for expansion to other chains as regulations evolve. Paxos emphasizes that the USDG is backed 1:1 by US dollar reserves, managed by DBS Bank, Singapore's largest banking institution.
Kraken co-CEO Arjun Sethi highlighted that the USDG model introduces competition in the regulated stablecoin market, potentially accelerating mainstream adoption and new use cases.
The Global Dollar Network, which facilitates participation for qualified entities, is set to play a critical role in the future of stablecoin usage.