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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