The Global Dollar (USDG) stablecoin, which stands out as an innovative move in the cryptocurrency world, is preparing to initiate a major transformation in the sector. Introduced in collaboration with leading cryptocurrency companies, USDG was developed as a stablecoin pegged one-to-one to the US dollar. This new model, unlike existing stablecoin systems, aims to distribute the majority of the income from reserve assets to business partners in the network, both to ensure that participants earn and to spread stablecoin usage globally.
A new coin draws attention in the cryptocurrency market
Leading cryptocurrency companies (Anchorage Digital, Robinhood, Galaxy Digital, Bullish, Kraken, Nuvei and Paxos) introduced the Global Dollar (USDG) stablecoin, which aims to reshape the stablecoin world. This new stablecoin aims to simplify the diversity in the stablecoin field and accelerate adoption. USDG, which will have a one-to-one (1:1) parity with the US dollar, is also designed in accordance with the regulations of the Monetary Authority of Singapore (MAS). One of the most striking features of USDG is that almost 100% of the income from reserve assets is distributed back to the partners in the network, thus making a profit for the entire network rather than just the issuing institution.
USDG will act as the building block of open source smart contracts, allowing developers to create new financial products and services using this token. Starting November 5, users from many sectors such as merchants, investment platforms, banks, payment fintech companies, and cryptocurrency exchanges will be able to join this new network and support innovative solutions for global financial transactions.
Will the new stablecoin be “revolutionary”?
The main purpose of USDG, introduced by the Global Digital Network, is to initiate a new transformation in the cryptocurrency sector by encouraging the use of stablecoins. Up to 100% of the income from USDG reserve assets on the platform will be paid back to the partners, aiming to make stablecoin usage more widely adopted. According to market experts, while many existing stablecoins fail to meet user security and industry standards, USDG is expected to offer consumer-friendly financial solutions thanks to its partners.
Anchorage Digital CEO Nathan McCauley stated that this new system will accelerate cross-border payments and peer-to-peer transactions for institutions, as well as offer a chance to earn returns on USDG deposits. It was announced that the Global Dollar Network will be governed by an advisory committee that will ensure the development of solutions that respond to the needs of the sector, and that innovation and growth will be encouraged through collaboration. McCauley emphasized that USDG is a significant opportunity for institutional users.
Paxos CEO and co-founder Charles Cascarilla pointed out that stablecoins are restructuring the financial system and revolutionizing the way users interact with the US dollar and payments. Kraken co-CEO Arjun Sethi stated that the lack of competition in the regulated stablecoin market is limiting the development of the sector, and stated that USDG is a strong model that can fill this gap. Robinhood Crypto’s General Manager Johann Kerbrat also said that USDG will restructure the financial system and provide faster, lower-cost and more efficient payment processes.
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