The Global Dollar Network is a new initiative launched by a significant coalition of fintech and cryptocurrency companies from Robinhood, Kraken, Paxos, and other organizations. It supports a stablecoin that is pegged to the value of the United States dollar, which is known as USDG. Through these stablecoins, quicker, cheaper cross-border transactions with rewards for promoters will be greatly facilitated.
Other co-founders of the Global Dollar Network are some established organizations, such as Anchorage Digital, Galaxy Digital, Bullish, Nuvei, and DBS Bank. Together, these firms will help challenge some of the long-standing barriers to stablecoin growth, such as high transaction fees and weak consumer protections. The committee will govern USDG, and it has been designed to meet Singapore’s new regulations on stablecoins, which gives another layer of trust to international users.
This would allow yield-sharing models from USDG stablecoins to reward participants based on reserve assets, which means more institutional investors and businesses will seek to implement stablecoins within their financial systems. Thus, it seeks to bring a more inclusive and equitable ecosystem within the regulated market of stablecoins.
“USDG changes the game in stablecoin space by providing a fairer model,” Co-CEO of Kraken, Arjun Sethi added. “This would increase wider participation from institutional and mainstream users.”
DBS Bank is Southeast Asia’s largest bank. The bank will manage USDG’s reserves and custody services, thereby adding a layer of security and credibility to the initiative. At launch, the stablecoin will be available on the platforms of Kraken, Paxos, Galaxy Digital, and Anchorage Digital and will soon spread to hundreds more.
As demand for stablecoins increases, the Global Dollar Network seeks to be a significant player in digital finance, bridges gaps in cross-border payments and fosters broader acceptance of stablecoins among global users and institutions.
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