• Home
  • Blockchain
  • Exciting Launch of 10 Million USDG Tokens Announced! 🌐💰
Exciting Launch of 10 Million USDG Tokens Announced! 🌐💰

Exciting Launch of 10 Million USDG Tokens Announced! 🌐💰

New Stablecoin Launch: Global Dollar 🌐

A consortium of leading crypto firms has unified to introduce a fresh stablecoin pegged to the US dollar. Dubbed the Global Dollar, this new digital currency is set to establish itself within the crypto market as an exciting innovation.

Introducing the Global Dollar by Notable Crypto Companies

The Global Dollar is in the pipeline, although its dedicated website, GlobalDollar.com, is already operational.

Once launched, the stablecoin will operate under the ticker symbol USDG.

The smart contract associated with it has been deployed on the Ethereum blockchain, and the initial issuance will consist of approximately 10 million USDG tokens.

Designed to be fully backed by actual US dollars, each USDG will be redeemable directly through Paxos at a one-to-one ratio for USD.

Paxos is a well-established regulated entity that has significantly ventured into the stablecoin space since 2018, having issued over 160 billion dollars in various stablecoins.

Moreover, Paxos will regularly provide detailed monthly reports concerning the reserves of USDG, mirroring its commitment towards transparency seen with its existing stablecoin offerings.

The valuation of USDG is structured to remain closely aligned with the US dollar, maintaining a consistent price point around one dollar.

Examining the Global Dollar Network 🌨️

The Global Dollar Network is envisioned as an open platform that seeks to expedite and promote the worldwide adoption of stablecoins. This network gathers major players such as Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.

An invitation phase has been initiated, welcoming additional qualified entities—ranging from custodians to payment fintechs and banking institutions—to join the Global Dollar Network in support of this innovative project.

The network aims to disrupt the current landscape of stablecoins, providing a dependable and regulated stablecoin option for users.

Specifically, USDG is geared to meet the forthcoming stablecoin regulatory framework established by the Monetary Authority of Singapore, where Paxos maintains its headquarters. In addition, there are plans to share any rewards generated from the network with token holders.

DBS Bank, recognized as Southeast Asia’s largest bank by total assets, will serve as the key banking partner for managing liquidity and safeguarding reserves upon the launch of USDG. DBS Bank boasts 16 consecutive years of being acknowledged by Global Finance as Asia’s safest bank.

Key Contributors: Robinhood and Kraken 🦅🐟

Alongside Paxos, two significant players entering this project are Robinhood and Kraken, as well as Galaxy Digital.

Both Robinhood and Kraken excel as exchanges, drawing in millions of crypto enthusiasts.

Robinhood distinguishes itself by allowing users in the US to invest without imposing account minimums, facilitated through a complimentary app. Moreover, it has begun venturing into the European market.

Furthermore, Robinhood operates as a registered financial service provider within the United States.

Kraken holds the title of one of the longest-operating cryptocurrency exchanges globally and ranks as the second-largest exchange in the US based on trading volume.

Founded in 2011, Kraken pioneered features like spot trading with leveraged positions, parachain auctions, staking, as well as regulated derivatives trading.

Understanding the Stablecoin Ecosystem 🌍

The stablecoin market is currently dominated by USDT from Tether and USDC from Circle.

Circle collaborates closely with major US exchange Coinbase, while Tether, despite lacking a defined location, wields significant influence in the market through its large holdings of US public debt, effectively making it applicable under US financial regulations.

Besides these two dominant coins, there exists a range of alternatives like USDS (previously DAI) and USDE, yet USDT and USDC collectively command nearly 90% of the entire stablecoin market share.

Notably, PayPal attempted to introduce its own stablecoin, PYUSD, but it has not yet achieved considerable success.

As such, while the journey for USDG to secure a prominent position within this competitive market appears challenging, the influence of key supporters like Kraken and Robinhood could be pivotal.

Perspectives from Industry Leaders 🗣️

The co-founder and CEO of Paxos, Charles Cascarilla, shared insights on the transformative potential of stablecoins. He emphasized:

“Stablecoins are refreshing the financial landscape and altering how consumers engage with US dollars and payments. Traditional stablecoins are often unregulated and control significant economic reserves. The Global Dollar Network is designed to return nearly all rewards to participants and invites anyone to join. It aims to boost global utilization of stablecoins and expedite societal acceptance of this technology.”

Robinhood Crypto’s GM and VP, Johann Kerbrat, noted the value of stablecoins in bridging traditional finance with cryptocurrency, mentioning:

“Stablecoins have proven to be bridges between conventional finance and digital currency, enabling quicker, cost-effective, and efficient transactions. We are thrilled to support the Global Dollar Network’s endeavors to broaden these opportunities, aligning with our mission for enhanced financial accessibility.”

Arjun Sethi, Co-CEO of Kraken, echoed similar sentiments, stating:

“The regulated stablecoin market has suffered from a lack of competition that hinders the sector’s growth. USDG aims to introduce a fairer framework that could draw mainstream participants into the ecosystem, paving the way for novel use cases for stablecoins.”

As developments continue, the impact and positioning of the Global Dollar remain to be fully realized in this evolving market landscape.

Read Disclaimer
This content is aimed at sharing knowledge, it's not a direct proposal to transact, nor a prompt to engage in offers. Lolacoin.org doesn't provide expert advice regarding finance, tax, or legal matters. Caveat emptor applies when you utilize any products, services, or materials described in this post. In every interpretation of the law, either directly or by virtue of any negligence, neither our team nor the poster bears responsibility for any detriment or loss resulting. Dive into the details on Critical Disclaimers and Risk Disclosures.

Share it

Exciting Launch of 10 Million USDG Tokens Announced! 🌐💰