Paxos Launches USDG Stablecoin in EU
On Tuesday, Paxos launched the Global Dollar (USDG), a stablecoin pegged to the U.S. dollar, in the European Union. This launch is backed by a consortium including Robinhood, Kraken, Galaxy Digital, and Anchorage Digital. The USDG is issued by Paxos Issuance Europe OY, a company regulated by Finland's Financial Supervisory Authority and aligned with the EU's new Markets in Crypto-Assets framework. Paxos will store some of the USDG's cash reserves in European banks and ensures one-to-one redemptions, complying with MiCA's standards. The demand for dollar-pegged coins in the EU has been increasing, and Paxos aims for USDG to compete with other regulated stablecoins like USDC. Trading platforms such as Kraken and Gate offer the USDG, which operates on Ethereum, Ink, and Solana blockchains. The Global Dollar Network (GDN), backed by leading industry players, including Robinhood and Kraken, supports the USDG. Although Tether’s USDT and Circle’s USDC dominate the stablecoin market, Paxos' USDG marks a significant entry. Paxos also offers other dollar-backed cryptocurrencies like USDP and PYUSD. Foresight Ventures, a backer of The Block who reported this news, is investing widely in crypto.
FAQ
❓ What is the USDG stablecoin?
USDG is a stablecoin by Paxos pegged to the U.S. dollar, designed to provide a compliant and secure digital currency option in the European Union.
❓ Who backs the USDG stablecoin?
USDG is backed by major financial entities including Robinhood, Kraken, Galaxy Digital, and Anchorage Digital.
❓ How does USDG comply with European regulations?
USDG is regulated by Finland's Financial Supervisory Authority and adheres to the EU's Markets in Crypto-Assets framework.