Paxos Announces the Launch of Global Dollar (USDG) Stablecoin in Collaboration with DBS Bank

Paxos, a leading regulated blockchain infrastructure provider, has announced the launch of its new stablecoin, the Global Dollar (USDG), in collaboration with

Paxos, a leading regulated blockchain infrastructure provider, has announced the launch of its new stablecoin, the Global Dollar (USDG), in collaboration with Singapore’s DBS Bank. This new stablecoin is fully backed by USD reserves and is designed to comply with the Monetary Authority of Singapore’s (MAS) regulatory framework.

(1/4) Today marks an exciting milestone in Paxos’ history. We’re pleased to introduce @global_dollar, the latest US dollar-backed stablecoin issued by Paxos. This is the 6th trusted digital asset from Paxos and its affiliates.

View the official press release here:… pic.twitter.com/G7fb9Ny9bT

— Paxos (@Paxos) October 31, 2024

The launch marks a significant milestone in the stablecoin market, aiming to enhance enterprise adoption of digital assets by combining regulatory compliance with robust liquidity standards.

This stablecoin is designed to be fully backed by a 1:1 reserve of the US dollar, held in highly liquid assets like US dollar deposits and short-duration government securities. DBS Bank, being the largest bank in Southeast Asia, will manage these reserves to ensure the stability of USDG, even during periods of market volatility.

Moreover, this partnership with DBS Bank, which is known for adhering to financial regulatory standards, adds a layer of trust and security to USDG, making it suitable for both crypto-native businesses and traditional financial institutions.

Highlighting the growing enterprise interest in stablecoins, Ronak Daya, Head of Product at Paxos, pointed out the lack of a solution that combines regulatory compliance with economic incentives for enterprises.

“Enterprise interest in stablecoins has never been higher than it is today, but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises,” said Daya.

USDG aims to bridge this gap by providing a stable and reliable digital dollar alternative that caters to the evolving needs of both retail users and regulated financial institutions.

Initially launched on the Ethereum blockchain, USDG will soon be integrated into other blockchains to maximize its accessibility. Paxos also plans to collaborate with major global exchanges, wallets, and other financial platforms to distribute USDG to individuals and institutions around the world.

This strategic move aligns with the increasing demand among financial institutions for digital assets that are compliant, secure, and easily redeemable. The launch of USDG marks a significant step forward in the integration of traditional finance and blockchain technology.

As the demand for stablecoins continues to rise, USDG is well-positioned to drive further growth and innovation in the digital asset space.

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