Global Dollar Network expands with EU launch of USDG stablecoin by Paxos with backing from Robinhood, Kraken and others

The Block

Jul 01, 2025 09:31:03

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Paxos on Tuesday launched the Global Dollar (USDG), a dollar-pegged stablecoin backed by a consortium that includes Robinhood, Kraken, Galaxy Digital, and Anchorage Digital, for users across the European Union.

USDG is issued in Europe by Paxos Issuance Europe OY, a Finnish entity regulated by Finland’s Financial Supervisory Authority and structured to comply with the EU’s new Markets in Crypto-Assets framework. Paxos will park part of USDG’s cash reserves in European banks and pledges one-to-one redemptions, meeting MiCA’s strict backing and audit rules.

Despite the bloc’s tight crypto laws, demand for U.S. dollar-pegged coins has ballooned according to Paxos. The company expects USDG to compete for market share with regulated options, such as Circle’s USDC, which was the first to receive a MiCA stablecoin license.

The Paxos-issued stablecoin trades on platforms such as Kraken, Gate, CoinsPaid, and Zodia Custody, and circulates on Ethereum, Ink, and Solana blockchains, providing 450 million EU residents with access to a compliant dollar stablecoin, Paxos' head of strategy, Walter Hessert, remarked in a statement.

Launched in November 2024, USDG supports the Global Dollar Network (GDN), an alliance of industry leaders focused on advancing stablecoin adoption. Names like Robinhood, Kraken, Paxos, Anchorage, Nuvei, Bullish, and Galaxy rank among the founding partners.

USDG is part of a crowded field dominated by Tether’s USDT and Circle’s USDC, which together hold nearly 90% of the $160 billion stablecoin market, according to The Block’s data dashboard. CoinGecko data shows the Global Dollar stablecoin has a $322 million market capitalization. Paxos also mints three other dollar-backed cryptos, including USDP and PayPal’s PYUSD, and the yield-bearing USDL.

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