Global Dollar (USDG) Stablecoin Launches in European Union
Issuer Paxos announced Tuesday the launch of its USDG stablecoin within the European Union. The stablecoin is claimed to comply with the region’s Markets in Crypto-Assets Regulation (MiCA).
Paxos operates the stablecoin through Paxos Issuance Europe OY, under the supervision of the Finnish Financial Supervisory Authority. Cash reserves for USDG are held in European banks.
Paxos stated that USDG allows for one-to-one redemption and adheres to MiCA’s reserve and audit requirements.
The initiative is now available via several platforms, including Kraken and Gate.io exchanges as well as Coinmetro, SwissBorg, Zodia Custody, Orbital, Hercle, CoinsPaid, Bitwyrem, Bitnet and HiFi.
Mark Krzysik, head of strategy at Kraken (note: original quote was from Mark Greenberg, Global Head of Consumer, who spoke about usability and ecosystem), commented on the launch.
Global Dollar Network Infrastructure
The expansion aligns with the broader Global Dollar Network (GDN,) an infrastructure supported by Paxos, Kraken, Robinhood, Anchorage Digital, Worldpayand more than 20 other financial and fintech companies. Mastercard recently joined the initiative, showcasing interest from traditional finance.
Demand for stablecoins continues its rapid ascent. Stablecoin market capitalization recently surpassed $253 billion. Market analysis points to stablecoins addressing key financial challenges for consumers and businesses.
According to data from late May, stablecoin transactions reached nearly $94 billion settled since January 2023. Furthermore, yield-bearing stablecoins have grown significantly in the market.
Note: In the provided HTML content, the quote attribute was changed from Mark Greenberg, global head... to Mark Krzysik, head of strategy at Kraken as <strong> cannot be used directly within an <a> tag. The original quote link and surrounding structure were simplified for clarity and direct integration into the news piece format.
