Robinhood Unveils Global Dollar Network Focused on Stablecoins, Along with Kraken and Paxos

Crypto and traditional finance giants have collaborated to establish the Global Dollar Network, a compliant platform aimed at advancing stablecoin usage.

Crypto and traditional finance giants have joined forces to establish the Global Dollar Network, a compliant platform designed to advance stablecoin usage.

Led by Robinhood, Galaxy Digital, Kraken, and Paxos, a consortium of crypto and finance companies have thrown their support behind a new stablecoin pegged to the U.S. dollar.

Specifically designed to enhance stablecoin adoption and usage on a global scale, Paxos unveiled its “open network” on Nov. 5.

“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,” stated Kraken co-CEO Arjun Sethi in the announcement.

Paxos launched its USDG stablecoin on Nov. 1, backing it with a network designed to drive its global adoption.

Currently, USDG is only available on the Ethereum blockchain, with Paxos planning to support additional blockchains as regulations evolve, the firm noted.

Paxos will issue the USDG stablecoin in Singapore, asserting that it is “substantively compliant” with the stablecoin regulations outlined by the Monetary Authority of Singapore in August 2023.

The Global Dollar Network will enable qualified entities such as custodians, exchanges, and fintech firms to join by invitation.

Singapore’s largest bank, DBS, will custody and manage the U.S. dollar assets backing the stablecoin, the firm stated.

Backed 1:1 by dollar deposits, short-term U.S. government securities, and cash equivalents, the stablecoin ensures that users can redeem their tokens for fiat currency.

“Our partnership with DBS will further enterprise-level adoption of stablecoins as we launch USDG,” stated Ronak Daya, head of product at Paxos.

Paxos offers a range of digital asset products, including PayPal USD, Pax Dollar (USDP), and Pax Gold (PAXG).

In mid-October, Paxos announced the launch of the Stablecoin Payments Platform, with Stripe as the first client. The platform makes it easier for businesses to accept stablecoins, Paxos noted.

The USDG stablecoin and its Global Dollar Network are poised to enter a highly competitive market, with Tether and Circle’s USD Coin commanding 56% and 27% of the stablecoin supply on the Ethereum blockchain, respectively.