Stablecoin Issuer Paxos Introduces Global Dollar (USDG)

Paxos, a leading digital assets company, has launched a new stablecoin called Global Dollar (USDG). This stablecoin is designed to meet the stringent compliance standards set by the Monetary Authority of Singapore (MAS) ahead of its anticipated regulatory framework for stablecoins. The announcement was made on October 31.

Compliance and Security

USDG is issued by Paxos Digital Singapore and is pegged 1:1 to the U.S. dollar. The reserves for USDG are held in high-quality liquid assets such as U.S. dollar deposits and short-duration U.S. Government securities. These reserves are managed by DBS Bank, the largest bank by assets in Southeast Asia.

Blockchain Integration

Initially, USDG will be available on the Ethereum blockchain. However, Paxos plans to expand USDG to other blockchains to support their goal of advancing stablecoin adoption globally. By offering regulated, secure, and redeemable assets, Paxos aims to make stablecoins more accessible and trustworthy.

“Enterprise demand for stablecoins is at an all-time high, yet compliant options with meaningful incentives remain limited,” noted Ronak Daya, head of product at Paxos. “USDG is designed to drive enterprise adoption globally, backed by strong regulatory standards and our partnership with DBS Bank.”

Regulatory Approvals

The launch of USDG follows the full approval received by Paxos Digital Singapore from the Monetary Authority of Singapore to offer crypto services in the region. This approval grants Paxos access to its third market, following licenses obtained in the U.S. and UAE.

About Paxos

Founded in 2012 by Charles Cascarilla and Rich Teo, Paxos is focused on regulated blockchain infrastructure. The firm has raised nearly $540 million in funding from multiple investors, including Oak HC/FT, Declaration Partners, and Mithril Capital, among others.

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