2024-11-06
On November 5, 2024, a coalition of
fintech and digital asset industry leaders, including Anchorage Digital,
Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood, launched the
Global Dollar Network.
A new initiative aimed at promoting the
adoption of stablecoins worldwide. This network is the USDG stablecoin, which
is pegged to the U.S. dollar and issued by Paxos from Singapore. This open
network aims to accelerate global adoption of stablecoins for users and
enterprises worldwide.
The Global Dollar Network, now open in
an invite-only phase, welcomes participation from banks, custodians, exchanges,
payment fintechs, merchants, and other financial institutions.
This new network is anchored by the
Global Dollar (USDG), a secure, regulated stablecoin issued by Paxos in
Singapore and compliant with upcoming Monetary Authority of Singapore
regulations.
The Global Dollar Network seeks to
resolve longstanding issues in stablecoin adoption, which has been hampered by
high fees and lack of compliance with global enterprise standards. Existing
stablecoin offerings have often retained all reserve-related economics,
limiting the broader financial benefits that could be distributed across the
ecosystem. The Global Dollar Network addresses these gaps by promoting fair
economic rewards for all participating members and supporting more secure and
affordable cross-border transactions.
Anchorage Digital’s CEO, Nathan
McCauley, emphasized the potential of stablecoins to revolutionize
international transactions, highlighting benefits such as fast settlement,
efficient trading, and rewards on certain stablecoin deposits. “We’re pleased
to support the launch of Global Dollar Network to make these benefits a
reality,” he stated.
Kraken’s Co-CEO, Arjun Sethi, pointed
to the network’s commitment to creating a competitive, regulated stablecoin
market: “USDG introduces a model that fosters inclusivity and expands
stablecoin use cases across industries.”
Paxos CEO Charles Cascarilla remarked
on the transformative role of stablecoins in financial services. He noted that
the Global Dollar Network not only democratizes access to stablecoin rewards
but is also designed to drive societal adoption of this technology.
The Global Dollar Network is also set
to collaborate with DBS Bank, Southeast Asia's largest bank by assets, which
will manage USDG reserves and provide cash management services. Anchorage
Digital, Galaxy Digital, Kraken, and Paxos are among the initial platforms
where USDG will be available for users, with plans to expand access across all
partner platforms soon.
Johann Kerbrat, VP of Robinhood Crypto,
expressed Robinhood’s support for the initiative, citing the network’s
alignment with Robinhood’s mission to improve financial access and inclusivity.
Bullish CEO Tom Farley also underscored the importance of trusted stablecoins,
noting that USDG will enhance opportunities for digital asset engagement by
bringing institutional-grade reliability to the ecosystem.
Businesses interested in joining the
Global Dollar Network are encouraged to reach out through the network's
website, globaldollar.com.
The goal of the Global Dollar Network
is to make stablecoins more accessible and widely used by creating a unified
platform that encourages both individuals and businesses to adopt stablecoin
transactions. By facilitating transactions in stablecoins, which are less
volatile than other cryptocurrencies, the network aims to enhance liquidity and
stability in the crypto market.
