Several fintechs and top crypto firms have collaborated to launch Global Dollar Network, a stablecoin platform that aims to expand the use of regulated stablecoins worldwide.
In a bid to expand the stablecoin ecosystem, financial technology (Fintech), traditional finance (TradFi) and the digital assets sectors have collaborated to launch the Global Dollar Network, a stablecoin platform featuring the Global Dollar (USDG), a new dollar-backed stablecoin issued by Paxos.
Leading firms involved in the Global Dollar Network include Robinhood, Kraken, Paxos, Bullish, Nuvei, Anchorage Digital and Galaxy Digital. Paxos announced this development in a press release on November 5, 2024.
“Today, leaders in fintech and digital assets introduced Global Dollar Network, an open network designed to accelerate stablecoin usage worldwide,” the announcement said.
Global Dollar Network
The Global Dollar Network aims to address the demand for secure and regulated digital dollar options in both consumer and enterprise markets. By offering a 1:1 USD-backed token on the Ethereum blockchain, the network is designed to facilitate seamless, low-cost transactions worldwide, especially for businesses seeking stable, dollar-denominated transfers.
Robinhood is expanding its involvement in digital assets and making a deeper push into financial technology, leveraging stablecoins to bridge traditional finance and blockchain-based systems. Kraken, a major global crypto exchange, provides additional liquidity and international reach for USDG, while Galaxy Digital brings expertise in digital asset management and blockchain innovation.
Meanwhile, Paxos, a regulated entity with experience in digital assets, oversees the issuance and management of USDG to ensure transparency and compliance with regulatory standards. DBS Bank in Singapore has joined as a backer to add credibility in the Asian markets and aid the network’s bid to compete with giants like Tether’s USDT and Circle’s USDC.
The initiative is another significant addition to the trend of TradFi platforms and major crypto entities converging for stablecoin development. The collaboration paves the way for regulatory compliance and transparency. As governments and regulators observe the stablecoin industry closely, the Global Dollar Network’s emphasis on security and regulated offerings could position it as a major player in the digital dollar landscape, attracting more enterprises and individuals seeking dependable, dollar-linked assets in the digital economy.
Read more: Stablecoins: Their Roles in the Crypto Ecosystem, Types and Associated Risks
Speaking on the collaboration and USDG launch, Nathan McCauley, CEO of Anchorage Digital mentioned that the Global Dollar Stablecoin will benefit institutions. He said: “Institutions gain an incredible set of opportunities with stablecoins: fast peer-to-peer and cross-border settlement, efficient trading capability and the chance to earn rewards on select stablecoin deposits. We’re pleased to support the launch of Global Dollar Network that can bring these benefits to reality.”
Likewise, the Co-CEO at Kraken, Arjun Sethi said that USDG is a more equitable model that will bring mainstream participants into the crypto ecosystem and accelerate new stablecoin use cases.
According to Charles Cascarilla, CEO and Co-Founder of Paxos on the decentralized nature of the Global Dollar Network, said: “The Global Dollar Network will return virtually all rewards to participants and is open for anyone to join. It is designed to incentivize global stablecoin usage and accelerate societal-wide adoption of this technology.”
Johann Kerbrat, general manager and vice president of Robinhood Crypto sees stablecoins as a proven bridge between traditional finance and cryptocurrencies, enabling faster, low-cost, and more efficient transactions. He expressed excitement about the partnership and reaffirmed Robinhood’s commitment to making financial access easier and more inclusive.
Following the launch of stablecoin remittance services by Thailand’s oldest bank, Siam Commercial Bank, the emerging Global Dollar Network looks promising, and it is expected to bolster a stronger TradFi and crypto integration.
