A coalition of major fintech and digital asset companies today introduced the Global Dollar Network, a new open network aimed at expanding the use of stablecoins across global markets. Spearheaded by prominent industry players Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood, the network seeks to drive mainstream stablecoin adoption by pooling resources and expertise. Leaders across diverse sectors, including custodians, exchanges, payment fintechs, merchants, protocols, card networks, banks, and investment platforms, are invited to join this initiative, aimed at accelerating innovation in global money movement.

Stablecoins have long faced limitations in meeting regulatory standards and offering comprehensive consumer protections, posing obstacles to enterprise adoption. Outdated business models have also burdened blockchain ecosystems with high costs, stifling broader innovation. By introducing the Global Dollar Network, the founding partners aim to address these issues and provide a stablecoin option that is both secure and economically favorable for all stakeholders.

At the core of this initiative is the Global Dollar (USDG), a newly developed stablecoin issued by Paxos in Singapore, aligned with upcoming regulatory standards from the Monetary Authority of Singapore. USDG’s design intends to provide businesses with a safe and regulated stablecoin that supports diverse financial applications. Managed by a network advisory committee with representation from each partner, the Global Dollar Network promotes a collaborative approach to reshaping the stablecoin landscape, addressing stringent regulatory demands, and facilitating growth within the digital economy.

Anchorage Digital CEO Nathan McCauley expressed enthusiasm for the network’s potential to transform institutional opportunities, saying, “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 to bring these benefits to reality.”

Kraken’s Co-CEO Arjun Sethi highlighted the network’s potential to foster competition, stating, “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.”

Paxos CEO and Co-Founder Charles Cascarilla noted the stablecoin’s potential for financial system transformation, saying, “Stablecoins are replatforming the financial system and revolutionizing how people interact with US dollars and payments. The Global Dollar Network will return virtually all rewards to participants and is open for anyone to join, incentivizing global stablecoin usage and societal adoption.”

Robinhood Crypto’s General Manager Johann Kerbrat added that stablecoins are crucial for bridging traditional finance and digital assets, while Bullish CEO Tom Farley emphasized the importance of trusted stablecoins in connecting crypto and traditional markets.

Starting today, USDG will be available through Anchorage Digital, Galaxy Digital, Kraken, and Paxos, with plans for wider availability through the network’s distribution partners. In addition, Southeast Asia’s largest bank, DBS, will serve as the primary banking partner at launch, providing cash management and custody services for USDG reserves. The introduction of USDG marks a strategic step towards a more accessible and regulated stablecoin market for enterprises worldwide.

Resources:

PR Newswire

Global Dollar Network