Paxos, a regulated blockchain company, has launched a new stablecoin called Global Dollar (USDG). The stablecoin complies with Singapore regulations and is backed by the U.S. dollar, with DBS managing its reserves.
The development comes five months after Paxos launched USDL, a UAE-regulated interest-bearing stablecoin.
Paxos and DBS launch USDG, opening a new era of stablecoins
Paxos Announcing the launch Singapore complained about the stablecoin Global Dollar (USDG). USDG is the company’s second stablecoin tailored for a specific region. The company launches the product five months ago after the United Arab Emirates launched its interest-bearing stablecoin USDL.
(1/4) Today marks an exciting milestone in the history of Paxos. We are pleased to introduce @globaldollarthe latest USD-backed stablecoin issued by Paxos. This is the sixth trusted digital asset from Paxos and its affiliates.
View the official press release here:… pic.twitter.com/G7fb9Ny9bT
— Paxos (@Paxos) October 31, 2024
In July, Paxos subsidiary Paxos Digital Singapore acquired green light from The Monetary Authority of Singapore (MAS) launches the USDG stablecoin.
Evy Theunis, head of digital assets at DBS Bank, shared the reasons why the bank partnered with Paxos to launch the stablecoin. She explained that DBS provides stablecoin issuers with reliable solutions that help them meet the high standards expected by regulators and customers.
Theunis added that the partnership also allows DBS to do more in the digital asset space.
Paxos explains USDG fully satisfies A guide to new stablecoins The Monetary Authority of Singapore (MAS) was established in August 2023. These rules outline how issuers should support, manage and audit stablecoins to ensure they are safe and secure for users.
Due to this compliance, USDG is currently active on the Ethereum blockchain and can be used and traded by people. Paxos also plans to expand USDG beyond Ethereum. As regulatory conditions change and become more favorable, the company intends to make USDG available on other blockchains.
As the rules evolve, users may eventually see USDG on multiple networks, allowing for greater access and flexibility.
Paxos announced USDG on X to drive the next big wave of stablecoin adoption. It designs coins that are suitable for both the cryptocurrency community and regulated institutions. This means USDG meets strict standards to ensure trust and reliability.
(4/4) USDG is designed to drive the next wave of global stablecoin adoption, meeting the needs of crypto-native ecosystems and regulated institutions that maintain higher operating standards. USDG is available on Ethereum today and will be issued on more blockchains (subject to approval)
— Paxos (@Paxos) November 1, 2024
The company also plans to expand its reach by partnering with top cryptocurrency exchanges, wallets, and trading platforms around the world. It is hoped that through this move, both individuals and institutions can use USDG and help more companies use USDG safely and conveniently.
Sygnum Bank emphasizes traditional banks embracing stablecoins due to clear rules
Stablecoins are increasingly popular in mainstream financial applications. Switzerland-based crypto bank Sygnum Bank sees more traditional banks showing interest in stablecoins.
Banks believe this is happening because The rules surrounding stablecoins are becoming increasingly clear. With these clearer rules, banks can more easily enter the stablecoin world.
Additionally, Sygnum Bank noted that stablecoin providers that already follow these new rules may have an advantage. As people begin to use stablecoins more for real transactions, these first movers may come to the fore.
As stablecoins become more widely used in everyday finance, early compliance could give them significant advantages.
USDG is fully backed by U.S. dollars at a 1:1 ratio, meaning every USDG token has an equal amount of U.S. dollar deposits. It is also backed by short-term U.S. government securities and other cash equivalents.
This support ensures that users can easily exchange their USDG tokens for real USD when needed.
Ronak Daya, head of product at Paxos, mentioned that the cooperation with DBS Bank will help enterprises adopt stablecoins more widely. This means more companies can start using USDG in their operations.
Paxos offers other digital assets such as PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). These assets all have different uses in the digital finance world.
