TL;DR: Paxos announced Global Dollar (USDG), a new US dollar-backed stablecoin, and Global Dollar Network (GDN), an innovative ecosystem designed to accelerate stablecoin adoption. USDG, which is substantively compliant with the Monetary Authority of Singapore’s (MAS) upcoming stablecoin framework, offers unparalleled security and compliance. GDN introduces a revolutionary economic model that fairly distributes network benefits among partners, driving mainstream adoption and reshaping the future of digital finance. Learn more at globaldollar.com.
Introducing Global Dollar (USDG) and the Global Dollar Network (GDN)
The stablecoin market has experienced exponential growth, with the total market cap expanding 50x over the past five years. This surge demonstrates the increasing demand for stable digital assets in both crypto and traditional finance. However, despite this growth, we see several key challenges that are hindering broader adoption and innovation in the stablecoin space.
Current Challenges in the Stablecoin Market
- Limited Economic Incentives: Existing stablecoins offer little to no financial upside for enterprises supporting their ecosystems. This misalignment of incentives slows adoption and innovation.
- Regulatory Uncertainty: Many popular stablecoins lack appropriate regulatory oversight, creating concerns for enterprises and institutional users who require safe and trusted assets.
- High Barriers to Entry: Launching a regulated stablecoin is cost-prohibitive for most enterprises, requiring significant time and financial investment.
- Fragmented Adoption: Scaled adoption of stablecoins for real-world use cases has been slow, as the ecosystem lacks coordinated efforts to drive mainstream acceptance.
To address these challenges, Paxos International, which is regulated by the Financial Services Regulatory Authority of Abu Dhabi Global Market, launched the US dollar-backed stablecoin Lift Dollar (USDL) earlier this year. USDL passes daily programmatic safe yield to its end holders to show how these customers can benefit from getting incentives for holding the dollar. Note: Lift Dollar (USDL) gives eligible users direct access to US dollars that earn yield safely, but it is not available to residents of certain jurisdictions, including the United States, and the United Arab Emirates except ADGM, the United Kingdom, the European Union, Canada, Hong Kong, Japan or Singapore.
As an innovator in the ecosystem, Paxos is unrelenting in our ability to build solutions that address the remaining challenges, which is why we were thrilled to announce USDG & Global Dollar Network last week.
Introducing Global Dollar (USDG) and the Global Dollar Network (GDN)
The launch of Global Dollar (USDG) and Global Dollar Network (GDN) directly addresses the challenge of incentive alignment with distributors and unlocks the full potential of stablecoins.
USDG is a US dollar-backed stablecoin issued by Paxos Digital Singapore, and is compliant with the Monetary Authority of Singapore’s (MAS) upcoming stablecoin regulatory framework. This ensures USDG meets the highest standards of consumer protection and regulatory compliance.
GDN is an open and distributed network of enterprise market leaders, partnering towards a shared goal of creating a stablecoin-enabled, accessible financial system. Together, USDG and GDN offer a comprehensive solution to the current challenges facing the stablecoin market:
- Aligned Economic Incentives: GDN introduces a new, transparent economic framework that distributes network revenue to partners based on their contributions. This includes rewards for minting, holding and facilitating transactions with USDG.
- Regulatory Compliance: USDG is built on Paxos’ proven infrastructure and is substantively compliant with MAS’ upcoming stablecoin regulatory framework, providing the trust and security that enterprises and institutions demand.
- Low-Cost Entry: By joining GDN, enterprises can leverage USDG without the high costs associated with launching their own stablecoin, while still benefiting from the network’s growth.
- Coordinated Adoption Efforts: GDN brings together a diverse group of market leaders across various sectors, fostering collaboration to drive both crypto and mainstream use cases for USDG.
Reshaping the Future of Digital Finance
The combination of USDG and GDN will accelerate the adoption of stablecoins in ways we haven’t seen before:
- Enterprise Empowerment: GDN partners can earn substantial revenue through on-platform economics and network incentives, encouraging active participation and innovation.
- Mainstream Adoption: By focusing on real-world use cases like payments, remittances and treasury management, USDG and GDN are positioned to bring stablecoins into everyday financial activities.
- Global Accessibility: USDG provides a stable, secure and widely accepted digital asset, improving financial access for individuals and businesses worldwide.
- Ecosystem Growth: The collaborative nature of GDN fosters the development of diverse use cases, driving value and utility for end-users everywhere.
With USDG and GDN, we’re not just introducing a new stablecoin and network – we’re laying the foundation for the future of money. By combining regulatory compliance, aligned incentives, and coordinated efforts towards mainstream adoption, we’re creating an ecosystem that benefits all participants – from large enterprises to individual users.
Global Dollar Network is an open network and we look forward to innovative enterprises joining us in this journey. Together, we can reshape the financial landscape, making it more accessible, efficient and inclusive for all.
Learn more at globaldollar.com about how USDG & Global Dollar Network can benefit your organization. To become a part of the network, submit your contact information and the GDN team will reach out regarding your status within 24 hours