Crypto companies introduce the global dollar stablecoin to promote acceptance

• The global dollar is issued by Paxos in Singapore and is "essentially compliant" with the MAS
• The USDT tablecoin from Tether makes up more than 75 % of the market
• The co-founder of Kraken said there was a "lack of competition" on the Stablecoin market

A group of cryptocurrency and financial technology companies introduced a common stablecoin, the Global Dollar (USDG), to speed up the worldwide introduction of stable coins.

The first partners of the Global Dollar Network are anchorage digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood. According to a Announcement From Paxos, the Global Network "revolutionizes" the StableCoin market with a "trustworthy stable coin that offers all partners appropriate economic advantages".

The USDG stable coupled to the US dollar is issued by Paxos in Singapore and "essentially corresponds to the upcoming StableCoin framework of the Monetary Authority of Singapore," says the announcement.

The USDG stable is introduced at a time when the USDT and CIRCLE stable coins from Tether make up a large part of the StableCoin market. It was reported in September that Usdt made up more than 75 %.

more competition necessary

According to Arjun Sethi, co-CEO of Kraken, it is this "lack of competition" in the StableCoin market that "prevents the industry from exhausting its full potential".

"USDG turns this dynamic upside down with a fairer model that includes mainstream participants in the ecosystem and accelerates new StableCoin application cases," added Sethi.

Charles Cascarilla, CEO and co-founder of Paxos, said that stable coins "change the way people interact with US dollars and payments", and added:

"However, the leading stable coins are not regulated and keep all reserve economics functions. Global dollar network gives practically all rewards back to the participants and is open to anyone who wants to join."