A coalition of prominent players in the cryptocurrency sector has announced the launch of a regulation-focused stablecoin, the Global Dollar (USDG), designed to return yield earned from its reserve assets to participants who promote its adoption. This initiative, known as the Global Dollar Network, includes key partners such as Anchorage Digital, Bullish (owner of CoinDesk), Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.
The USDG stablecoin is issued in Singapore by Paxos and is described as “substantively compliant” with the upcoming stablecoin framework established by the Monetary Authority of Singapore, according to a press release.
“This is meant to really be a community token,” stated Paxos CEO Charles Cascarilla in an interview. “Anyone can join the Global Dollar Network and earn rewards for their participation. We plan to distribute approximately 97% of the economic benefits, which sets us apart from how other stablecoins have traditionally been structured.”
Stablecoins represent a significant sector within cryptocurrency, largely dominated by two major players: Tether, whose USDT is the largest stablecoin by a substantial margin, and Circle, with its USDC as the second largest. Unlike USDG, both Tether and Circle retain all the interest generated from their reserves. Other yield-sharing stablecoins exist, along with innovative protocol developments like those from the M^0 project.
The income generated from USDG’s reserves, primarily held in U.S. Treasuries, will be distributed among participants based on their contributions to enhancing connectivity and liquidity within the network. “Our structure rewards participants for activities that expand the utility of the network,” Cascarilla explained. “Different participants can receive rewards in various ways, reflecting the diverse roles that foster a vibrant ecosystem.”
By focusing on rewarding participant companies rather than end-users, the USDG stablecoin can be accessed in the U.S. through distribution partners, such as Anchorage, which operates across all 50 states.
At launch, DBS Bank, Southeast Asia’s largest bank by assets, will act as the primary banking partner, overseeing cash management and the custody of USDG reserves.
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