Leading crypto firms including Paxos, Kraken, Galaxy Digital, and Robinhood announced the formation of the Global Dollar Network to enhance stablecoin adoption globally.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
In a major development on Monday, November 4, some of the top crypto firms including Paxos, Kraken, Galaxy Digital, and Robinhood joined hands to launch the Global Dollar Network, to boost stablecoin adoption across the world.
The announcement notes that this initiative will help firms drive real-world use cases for innovative payment solutions. Also, the development comes at a crucial time when the talks of regulations around stablecoins have caught up the heat.
The Global Dollar Network is open for anyone to join including exchanges, custodians, payment fintechs, protocols, merchants, banks, and investment platforms. Also, the Global Dollar Network’s primary goal is to promote the Paxos-issued USDG. this stablecoin has also secured regulatory approval from the Monetary Authority of Singapore (MAS).
Partners within the network will collaborate to develop new solutions centered on USDG, leveraging their combined business expertise. With this network update, USDG is now accessible on Kraken, Anchorage Digital, and Galaxy Digital.
Paxos noted that popular stablecoins in the market fall short of meeting the consumer protection standards required by global enterprises. As we know, Tether has been facing allegations of DOJ inquiry, however, the company has rejected it entirely.
Furthermore, the enterprise adoption of stablecoins faces hindrances due to outdated business models that impose high costs on blockchain ecosystems. These inefficiencies stifle innovation and create missed opportunities for payment providers, custodians, and exchanges, in search of secure stablecoin solutions. The Global Dollar Network seeks to transform this landscape by introducing a reliable stablecoin that delivers fair economic benefits to all participants.
At the core of this network will be the Global Dollar (USDG) which is a safe and trusted stablecoin issued by Paxos, per the Singapore regulations. The Global Dollar Network harnesses the combined strengths of its partners to drive the development of both crypto and broader financial solutions involving USDG. Guided by an advisory committee with partner representation, the network aims to redefine the stablecoin landscape.
Speaking on the development, Arjun Sethi, Co-CEO at Kraken, said:
“The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential. USDG upends this dynamic with a more equitable model that will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases.”
As said, the stablecoin market is heating up with big players like Ripple also willing to join the bandwagon. With the strong growth of the crypto industry, the demand for stablecoins is likely to grow exponentially in the coming years. Thus, the Global Dollar (USDG) will play a crucial role in navigating this landscape.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
