Stablecoin issuer Paxos, along with Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, and Robinhood have collaborated to launch a new stablecoin network, the Global Dollar Network, with the newly issued stablecoin USDG at its core, which has been approved by regulators in Singapore.
The High-profile Global Dollar Network
According to the press release, the Global Dollar Network is an open network designed to accelerate the use of stablecoins globally. Initial partners including Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood are integrating resources and expertise to increase the adoption of stablecoins and expand real-world use cases. Partners including custodians, exchanges, payment fintech companies, merchants, protocols, credit cards, banks, and investment platforms can join the network to support innovation in global money flow. Currently, it is open only to qualified participants.
Paxos emphasizes that many existing stablecoins do not meet the standards and consumer protection requirements of global enterprises. Moreover, outdated business models impose high costs on the blockchain ecosystem. The Global Dollar Network is attempting to change the market by offering a trustworthy stablecoin, providing corresponding economic benefits to all partners.
Paxos Expands Stablecoin Offerings Beyond the US
As a professional stablecoin issuer, Paxos has collaborated with Binance to issue BUSD, and with PayPal to launch PayPal USD (PYUSD), as well as the Pax Dollar (USDP) on Solana.
Outside the United States, Paxos’ subsidiary in the UAE, Paxos International, introduced a yield-generating stablecoin – Lift Dollar (USDL) in June. USDL is issued by Paxos International, a regulated entity under the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), available to consumers in qualified global markets. Using Ethereum smart contracts, the reserves’ generated income is distributed daily to eligible wallet addresses.
(Paxos issues yield-generating stablecoin USDL, with reserve income automatically distributed to wallets daily)
USDG Development under Singaporean Regulation
Following the US and the United Arab Emirates, Singapore becomes the third market where Paxos and its affiliated entities are authorized to issue stablecoins.
Paxos recently announced the launch of a new stablecoin, USDG, backed by the US dollar, following the stablecoin framework introduced by the Monetary Authority of Singapore (MAS) in August 2023 and approved by MAS in July of the same year. It has been issued on Ethereum. DBS Bank, the largest bank in Southeast Asia by assets, is responsible for cash management and the custody of USDG reserves.
(PAXOS partners again with DBS to launch new stablecoin USDG, promoting the development of stablecoins)
The collaboration of the Global Dollar Network with several industry heavyweights also highlights Paxos’ attempt to establish a different niche market in Singapore after the failure of BUSD, setting a distinct path from other stablecoin giants Tether and Circle.