- Paxos has formed a consortium with Robinhood, Galaxy Digital, and Kraken for the global USDG stablecoin ecosystem
- They are launching their open blockchain infrastructure Global Dollar Network
- Paxos will issue the USDG stablecoin out of Singapore and claims compliance with the Monetary Authority of Singapore
- USDG will be backed 1:1 to USD and reserved and managed by Singapore’s DBS Bank
Paxos has launched a major initiative for its new USDG stablecoin, forming a consortium of Robinhood, Galaxy Digital, and Kraken to develop and maintain it.
In addition, Paxos is launching an open blockchain infrastructure called Global Dollar Network, which verified companies can join upon invitation.
All of this is aimed at the fact that the stablecoin ecosystem isn’t experiencing much competition and isn’t reaching its true potential, nor is it adapting at the desired speed.
USDG and Global Dollar Network Details
Paxos has already done many initiatives to create a sustainable cryptocurrency, among them USDP and PAXG, but this time it’s more fundamental and universal.
Along with the launch of USDG, they are launching a separate global and open blockchain infrastructure called Global Dollar Network, not limited to already existing solutions like Ethereum. Verified custodians, exchanges, and fintech firms can join by invitation.
Their endeavor in teaming up with other key crypto industry players like Robinhood, Galaxy Digital, Kraken, and others is aimed at expanding and rebalancing the stablecoin ecosystem and advancing its global adoption and usage.
Kraken co-CEO Arjun Sethi:
“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”
Paxos will issue the USDG stablecoin out of Singapore according to Paxos statements and in accordance with the latest Monetary Authority of Singapore regulatory framework of 2023. It will also have to be backed 1:1 to USD, as well as short-term US government securities and other cash equivalents. Meanwhile, its reserves will be held and managed by Singapore’s largest banking institution, DBS Bank.
Conclusion
We are seeing Paxos and PayPal, one of the largest financial services from Web2, understand well where things are going and they are very active in pushing their initiatives into Web3.
It doesn’t happen often when such a large company with such a serious position in one industry doesn’t hang on to it until the last but moves forward.
This is probably far from Paxos and PayPal’s last Web3 initiative and we should continue to watch its moves and developments very closely. Stay tuned.
