tl;dr
Top Web3 companies, including Kraken, Galaxy Digital, Robinhood, and Paxos, have launched the Global Dollar Network to promote the use of stablecoin, primarily USDG. The network aims to drive real-world use cases for innovative payment solutions and is open to membership from leaders in exchanges, c...
Top Web3 companies, including Kraken, Galaxy Digital, Robinhood, and Paxos, have launched the Global Dollar Network to promote the use of stablecoin, primarily USDG. The network aims to drive real-world use cases for innovative payment solutions and is open to membership from leaders in exchanges, custodians, protocols, and card networks. USDG, a new Paxos stablecoin compliant with the Monetary Authority of Singapore, is a focal point for the network, with partners working collectively to promote solutions based on USDG. Other companies, such as Paypal and Ripple Labs, are also exploring stablecoin initiatives to challenge the dominance of existing stablecoins like Tether and Circle.
KRAKEN IN THE GLOBAL DOLLAR NETWORK: THE CORE GOALS
It is not unusual for crypto firms to jointly form an alliance to promote a cause. In the case of the Global Dollar Network, these supporting entities are trying to push for the adoption of stablecoin. According to the announcement, the firms will help in driving the real world use cases of innovative payment solutions. The move comes at a time when the clamor around stablecoin regulation is growing across the board. Besides the US, other regions are making concerted efforts to drive defined rules to guide stablecoin issuers in the market. Despite the close nature of the limited number of founders for the Global Dollar Network, the body said its membership is open. Membership may span leaders from exchanges, custodians, protocols and card networks to mention a few. Primarily, the Global Dollar Network seeks to promote USDG, a new Paxos stablecoin. This stablecoin got the regulatory greenlight from the Monetary Authority of Singapore (MAS), making it compliant standard for the network. All the partners in the network will work together to front new solutions hinged on USDG using collective business strengths. Following the network’s update, USDG is now available on Kraken, Anchorage Digital and Galaxy Digital respectively. DBS Bank will provide banking services for now.
THE PUSH FOR STABLECOIN DOMINANCE
Many companies in the industry are continuously exploring avenues to get a foothold in the stablecoin game. In a bid to challenge the dominance of Tether (USDT) and Circle (USDC), Paypal launched the PYUSD stablecoin last year. While this has failed to displace the duo, more ambitious firms like Ripple Labs have also announced a move into the sector. The Ripple stablecoin RLUSD push is currently in its advanced testing stages with a launch set for any moment from now. The RLUSD stablecoin testing is ongoing on both the Ethereum and XRP Ledger. Overall, firms like Revolut also have a stablecoin launch roadmap, a move that proves most fintech firms can have a stake by joining related alliances.