Darius Varu
November 1, 2024 10:22
Paxos launches USDG, a US dollar-backed stablecoin compliant with Singapore’s MAS framework. USDG aims to strengthen global stablecoin adoption by collaborating with DBS Bank for secure reserve management.
Paxos, a leader in blockchain and tokenization infrastructure, has officially launched Global Dollar (USDG), a new US dollar-backed stablecoin. According to Paxos, this development, announced on November 1, 2024, will be regulated by the Monetary Authority of Singapore (MAS) and marks a strategic step towards global stablecoin adoption.
USDG: A New Era of Stablecoins
USDG is designed to meet the needs of regulators by maintaining high operating standards. It is available on the Ethereum blockchain, with plans to expand to other blockchains soon. Paxos ensures that USDG is backed by high-quality liquid assets such as US dollar deposits and short-term US government securities, maintaining 1:1 parity with the US dollar. This allows users to exchange their tokens for fiat currency at any time.
Strategic Partnerships and Compliance
The introduction of stablecoins is complemented by a partnership with DBS Bank, the largest bank in Southeast Asia, which has been recognized as the safest bank in Asia for 16 consecutive years. DBS will manage the cash reserves backing USDG, further enhancing security and reliability. This collaboration is expected to foster innovation and adoption of stablecoins globally.
Ronak Daya, head of product at Paxos, said corporate interest in stablecoins is growing and highlighted the market need for solutions that combine regulatory compliance and economic incentives. He said USDG fosters stablecoin innovation at a global level by providing trusted solutions with top-tier banking partners.
Expanding Paxos’ digital asset portfolio
USDG is the sixth digital asset issued by Paxos, following the successful launch of other digital currencies such as PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). These assets are issued by Paxos Trust Company, LLC, an entity regulated by the New York Department of Financial Services, and Paxos International, a UAE-based affiliate regulated by the FSRA of the Abu Dhabi Global Market.
Paxos continues to strengthen its position as a trusted partner for businesses around the world, facilitating the tokenization, storage, trading, and settlement of digital assets. The company is carefully regulated in the United States, Singapore, and Abu Dhabi, further emphasizing its commitment to compliance and security in the digital asset space.
Wider implications for the financial system
Paxos’ introduction of USDG is aligned with its mission to replatform the financial system to enable instantaneous asset movement globally. Paxos is at the forefront of creating a more efficient and accessible financial infrastructure through partnerships with leading global players such as PayPal, Mastercard, and Nubank.
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