TheUSDGstablecoinisissuedoutofSingaporebyPaxos,andisbroadlyinlinewiththeMonetaryAuthorityofSingapore\'supcomingstablecoinframework.

IncomederivedfromUSDG’sreserveswillbesharedamongtheinitialGlobalDollarNetworkpartners,whichareAnchorageDigital,Bullish,GalaxyDigital,Kraken,Nuvei,PaxosandRobinhood.

Agroupofheavyhittersinthecryptocurrencyspacearebackinganew,regulation-focusedstablecoin,theGlobalDollar(USDG),whichaimstoreturnyieldearnedonitsreserveassetstoparticipantswhohelpaccelerateitsadoption.

DubbedtheGlobalDollarNetwork,theoriginalpartnersareAnchorageDigital,Bullish(theownerofCoinDesk),GalaxyDigital,Kraken,Nuvei,PaxosandRobinhood.

TheUSDGstablecoinisissuedoutofSingaporebyPaxos,andis“substantivelycompliant”withtheMonetaryAuthorityofSingapore\'supcomingstablecoinframework,accordingtoapressrelease.

“Thisismeanttoreallybeacommunitytoken,”saidPaxosCEOCharlesCascarillainaninterview.“AnybodycanjointheGlobalDollarNetworkandaccruerewardsforactivity.We\'redistributingsomethinglike97%oftheeconomics.That\'sabigdifferencefromhowotherstablecoinshavebeensetupandcreatedtodate.”

Stablecoinsareabigbusinesswhichhasbeendominatedbytwogiants,Tether–whose(USDT)isthelargeststablecoinbyawidemargin–andthenextbiggest,Circleandits(USDC).UnlikethenewUSDG,bothTetherandCircleretainalltheinterestfromreserves.Thereareotheryield-sharingstablecoinsaswellassomeinterestingprotocol-levelinnovationfromthelikesoftheM^0project.

IncomegeneratedfromUSDG’sreserves,whichlikemanystablecoinsareU.S.Treasuries,willbesharedoutamongparticipantsbasedonthewaysthesefirmscancreateconnectivityandliquidity,Cascarillasaid.

“Thewaywehavesetthisupisthattheparticipantsarebeingrewardedforactivitythathelpsgrowtheutilityofthenetwork,”hesaid.“Thatcouldbeforanumberofactivities;differentparticipantscanberewardedindifferentways,becausenoteveryonedoesthesamething,andthat\'sactuallywhatmakesathrivingecosystem.”

Byrewardingparticipantcompaniesratherthanendusersoftheplatform,theUSDGstablecoinisavailableintheU.S.viathefootprintofthedistributionpartners,suchasAnchorage,whichoperatesin48states.

DBSBank,SoutheastAsia’slargestbankbyassets,willserveastheprimarybankingpartneratlaunchforcashmanagementandcustodyofUSDGreserves.

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