Robinhood, Kraken, and Other Crypto Firms Form Alliance to Launch New Stablecoin Network

Some of the leading crypto firms have formally formed an alliance aiming to encourage digital asset users worldwide to adopt stablecoin.

Some of the leading crypto firms have formally formed an alliance aiming to encourage digital asset users worldwide to adopt stablecoin. Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, Nuvei, and Paxos joined forces to launch a new stablecoin known as the USDG, or the Global Dollar Network.

Together, they aim to push for a wider integration of stablecoin in everyday financial transactions.

A New Stablecoin NetworkA seven-strong partnership has brought forth an open network named the Global Dollar Network.

The partnership includes Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, Nuvei, and Paxos. According to their joint statement, the new network was created to accelerate stablecoin’s worldwide usage.

These leaders in their respective industries will now pool their resources and utilize their expertise to push for a wider adoption of the coin, making it a more global digital currency.

The consortium urged other firms, custodians, payment tools, crypto exchanges, and other platforms to become part of the newly formed stablecoin network so they can work together to innovate global money.

USDG Stablecoin

The new network will issue a new stablecoin called USDG which will be pegged at one is to one to the greenback.

The stablecoin bloc aims to contest the status quo in the digital asset market which is currently dominated by Circle’s USD Coin (USDC) and Tether’s USDT. With the arrival of USDG, it has the potential to reshape the stablecoin landscape.

According to CoinGecko, 90% of the stablecoin’s total market capitalization consists of USDC and USDT.

Kraken Co-CEO Arjun Sethi said that the industry has not reached its potential because there is a lack of competition in the regulated stablecoin market, claiming that USDG would upend this dynamic since the new stablecoin offers a more equitable model.

Sethi adds, “It will bring mainstream participants into the ecosystem and accelerate new stablecoin use cases.”

On the other hand, Bullish CEO Tom Farley said that the network has increased the number of “trusted” stablecoins to choose from.

“Trusted stablecoins are essential in bridging the gap between crypto and traditional markets,” Farley added.

The Importance Of The Dollar NetworkStablecoins are digital assets that are backed by traditional currencies and are created to keep a constant value.

These digital assets are usually utilized to turn crypto coins into traditional currencies since the token is not affected by wild price fluctuations like in other digital currencies.

Stablecoins are designed to maintain a one-to-one peg with the fiat currency they are backed by, making them less volatile than other cryptocurrencies.

This makes them an ideal tool for everyday financial transactions, such as sending and receiving money, making payments, and earning rewards.

Paxos CEO Charles Cascarilla said that stablecoins are used to re-platform the financial system by revolutionizing the interaction between people and the US dollars, adding that the Global Dollar Network will incentivize the usage of stablecoin and accelerate its adoption in society.