Global Dollar Network Launches to Boost Stablecoin Adoption

Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood have collaborated to introduce the Global Dollar Network.

Purpose

The primary goal of this network is to accelerate global stablecoin adoption and encourage new use cases for the stablecoin USDG, which was launched on November 1.

Infrastructure

The blockchain infrastructure platform Paxos will issue USDG from Singapore, adhering to regulations set by the nation's Monetary Authority, as stated in a release shared with The Block. Various qualified entities—including custodians, exchanges, and payment technology firms—will be invited to join the Global Dollar Network.

Industry Insight

Kraken Co-CEO Arjun Sethi commented on the market landscape, stating, "The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential. USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases."

Custody and Availability

DBS Bank, a banking giant in Singapore, will handle the custody of USDG reserves. The token will be available on Ethereum, with plans for issuance on additional blockchains in the near future.

Market Competition

However, USDG will compete against existing Ethereum-based stablecoins, with USDT commanding over 58% of the total supply according to data from The Block's Data Dashboard.