"New stablecoin project from crypto and finance giants."

The leading companies in the finance and cryptocurrency world have launched a new platform called Global Dollar Network, aimed at expanding the use of stablecoins. This new initiative, led by Robinhood, Galaxy Digital, Kraken, and Paxos, brings a fresh breath to the cryptocurrency markets with the launch of the USDG stablecoin in a regulated environment. Collaboration and technology highlight the potential to accelerate the global acceptance of stablecoins and innovations in financial services.

Crypto and Finance Giants Join Forces for Stablecoin Project

Leading organizations in the finance and cryptocurrency ecosystem have signed a significant partnership. The Global Dollar Network, established under the leadership of Robinhood, Galaxy Digital, Kraken, and Paxos, aims to promote the compliant use of stablecoins.

According to a statement made by blockchain technology provider Paxos within 5 days, the new platform will focus on increasing global stablecoin adoption. In a related assessment, Kraken's co-CEO Arjun Sethi pointed out the lack of competition in the regulated stablecoin market, emphasizing that USDG will bring new participants to the sector.

The USDG stablecoin, which will initially operate only on the Ethereum Blockchain network, will be made available on different Blockchain networks in parallel with the development of legal regulations. Singapore-based Paxos announced that it will launch USDG in accordance with the new stablecoin regulations introduced by the Monetary Authority of Singapore in August 2023.

The Global Dollar Network, which will operate on an invitation-only basis, will consist of custodial service providers, cryptocurrency exchanges, and fintech companies. The USDG's US dollar reserves will be managed by Singapore's reputable financial institution, DBS Bank. The stablecoin will be backed on a one-to-one basis by US dollar deposits, short-term government bonds, and other cash equivalents.

Paxos product manager Ronak Daya stated that the collaboration with DBS will accelerate the institutional-level acceptance of the stablecoin. The company already offers digital asset services such as PayPal USD, Pax Dollar, and Pax Gold.

According to DefiLlama data, USDG will be a new competitive element in the stablecoin market on the Ethereum Blockchain, which is currently dominated by Tether and Circle's USD Coin.