Paxos Partners with Kraken, Robinhood, and Others to Launch Global Stablecoin Network

Paxos, a leading financial technology company, has recently announced the launch of a Global Dollar Network in collaboration with prominent industry players such as Kraken, Robinhood, Galaxy Digital, Anchorage Digital, Bullish, and Nuvei. This network has been established to support a new stablecoin called USDG, which is pegged to the U.S. dollar and complies with the upcoming stablecoin regulations set by the Monetary Authority of Singapore.

Unlike traditional stablecoins, USDG incorporates a unique yield-sharing model, allowing participants to earn returns from the reserve funds by driving adoption of the stablecoin. This innovative approach aims to incentivize users to actively participate in the network and contribute to its growth.

Johann Kerbrat, the general manager and vice-president of Robinhood Crypto, emphasized the significance of stablecoins in bridging the gap between traditional finance and cryptocurrencies. He highlighted the benefits of stablecoins in facilitating faster, more cost-effective, and efficient transactions for users.

Initially, only invited financial institutions will have access to USDG to develop new solutions. Nathan McCauley, the CEO of Anchorage Digital, mentioned that early adopters of the stablecoin will benefit from fast peer-to-peer and cross-border transactions, as well as the opportunity to earn rewards on stablecoin deposits.

The fund and custody for USDG’s reserves will be managed by DBS Bank, the largest bank in Southeast Asia. The stablecoin will be available on platforms provided by Anchorage Digital, Galaxy Digital, Kraken, and Paxos, with plans to expand to more platforms in the future as the network grows.

Charles Cascarilla, the CEO of Paxos, described the launch of the Global Dollar Network as a significant step towards “replatforming the financial system.” He emphasized that the network is open for anyone to join and aims to promote the widespread adoption of stablecoins globally.

Currently, USDG is only available on the Ethereum blockchain, but Paxos intends to integrate more blockchains over time as regulations permit. The launch of the Global Dollar Network marks a major milestone in the evolution of stablecoins and their role in revolutionizing the financial industry.

In conclusion, the collaboration between Paxos and its partners to introduce the USDG stablecoin through the Global Dollar Network signifies a significant advancement in the realm of digital assets and blockchain technology. This initiative is poised to reshape the landscape of stablecoin usage and drive innovation in the financial sector.