TL;DR
- Paxos launched the Global Dollar (USDG) stablecoin, fully backed by USD reserves, in collaboration with Singapore’s DBS Bank, complying with the Monetary Authority of Singapore’s regulatory framework.
- USDG is backed 1:1 with the US dollar, with reserves managed by DBS Bank, ensuring stability and trust, making it suitable for both crypto-native businesses and traditional financial institutions.
- Initially available on the Ethereum blockchain, USDG will soon be integrated into other blockchains, enhancing accessibility and utility, and driving further growth and innovation in the digital asset space.
Paxos, a leading regulated blockchain infrastructure provider, has announced the launch of its new stablecoin, the Global Dollar (USDG), in collaboration with Singapore’s DBS Bank. This new stablecoin is fully backed by USD reserves and is designed to comply with the Monetary Authority of Singapore’s (MAS) regulatory framework.
(1/4) Today marks an exciting milestone in Paxos’ history. We’re pleased to introduce @global_dollar, the latest US dollar-backed stablecoin issued by Paxos. This is the 6th trusted digital asset from Paxos and its affiliates.
View the official press release here:… pic.twitter.com/G7fb9Ny9bT
— Paxos (@Paxos) October 31, 2024
The launch marks a significant milestone in the stablecoin market, aiming to enhance enterprise adoption of digital assets by combining regulatory compliance with robust liquidity standards.
Ensuring Stability and Trust
USDG is backed 1:1 with the US dollar, with reserves held in high-quality liquid assets such as US dollar deposits and short-duration government securities. DBS Bank, Southeast Asia’s largest bank, will manage these reserves, ensuring the stablecoin’s stability even in volatile market conditions.
This partnership with DBS Bank, recognized for its stringent compliance with financial regulatory standards, adds a layer of trust and security to USDG, making it suitable for both crypto-native businesses and traditional financial institutions.
Enhancing Enterprise Adoption
Paxos’ Head of Product, Ronak Daya, emphasized the growing enterprise interest in stablecoins, noting that the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises.
“Enterprise interest in stablecoins has never been higher than it is today, but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises,” Daya stated.
USDG aims to fill this gap by providing a stable and reliable digital dollar alternative that meets the evolving needs of both retail users and regulated financial institutions.
Paxos’ Future Expansion Plans
Initially available on the Ethereum blockchain, USDG will soon be integrated into other blockchains to maximize its accessibility. Paxos plans to collaborate with major global exchanges, wallets, and other financial platforms to distribute USDG to individuals and institutions worldwide.
This strategic move corresponds with the growing need among financial institutions for digital assets that are compliant, secure, and easily redeemable. The launch of USDG represents a significant step forward in the integration of traditional finance and blockchain technology.
By providing a fully backed and regulated stablecoin, Paxos and DBS Bank are setting a new standard for financial services in the cryptocurrency market. As the demand for stablecoins continues to rise, USDG is well-positioned to drive further growth and innovation in the digital asset space.