New USDG stablecoin set to compete with Tether and USD Coin: Robinhood, Kraken & Co. on Board

The Global Dollar Network with USDG stablecoin is coming – Backed by prominent companies.

Consortium Formed

Prominent names in the crypto sector, including Kraken, Paxos, Robinhood, and Galaxy Digital, have joined forces in a newly established consortium to drive adoption of the newly launched USDG stablecoin, which is pegged to the US dollar.

The open network, Global Dollar Network, aims to accelerate stablecoin usage worldwide and promote an asset that provides economic benefits to its partners, according to a joint statement. At the core of the network is the Global Dollar (USDG), which the consortium promotes as a “new, secure, and trustworthy stablecoin.” Issued by Paxos from Singapore, the coin is largely compliant with the upcoming stablecoin framework from the Monetary Authority of Singapore.

“Under the guidance of a network advisory committee with partner representation, the Global Dollar Network aims to reshape the stablecoin landscape by offering a solution that meets the stringent demands of global enterprises while fostering collaborative growth and innovation,” the consortium clarified about the project’s goals.

Two Dominant Coins

The stablecoin market is currently dominated by two main coins, Tether and USD Coin, which together account for around 90% of total market capitalization, according to CoinGecko. With the entry of the Global Dollar Network, a new player is set to bring more competition to the market.

Arjun Sethi, Co-CEO at Kraken, stated in the joint announcement, “The lack of competition in the regulated stablecoin market has prevented the industry from reaching its full potential. USDG disrupts this dynamic with a fairer model that includes mainstream participants and accelerates new use cases for stablecoins.”

Paxos CEO Charles Cascarilla added, “Global Dollar Network will return virtually all rewards to participants and is open to everyone. It aims to foster the global use of stablecoins and accelerate societal acceptance of this technology.”

Trump Election Raises Hopes for Crypto Players

The election of Donald Trump as the next U.S. President has many investors and market participants hopeful for a boost in crypto investments. Trump positioned himself as a crypto advocate before the election, announcing plans to take a much more liberal approach to regulation than his predecessor Joe Biden. This immediately drove Bitcoin to a new record high after the election results were announced, giving significant momentum to other crypto assets as well.