Crypto exchange OKX has officially joined the Global Dollar Network, facilitating access to Paxos’ USDG stablecoin for the exchange’s user base. The integration aims to support the adoption of a regulated, US dollar-backed stablecoin, OKX stated.
Effective Monday, users across OKX’s global platform servicing 60 million customers will be able to utilize USDG for trading and money transfers within the network.
OKX currently supports prominent stablecoins such as Tether (USDT) and USD Coin (USDC). The addition of USDG, a newer entrant with a proportionally smaller market footprint, seeks to increase user access to regulated digital dollar assets within a project governed by established regulatory structures.
USDG, collateralized by US dollar deposits and short-term government securities, has increased its circulating supply steadily over the past year.
USDG was introduced by Paxos in November 2023. Reserves backing the stablecoin are held by Singapore’s DBS Bank and are subject to the regulatory oversight of the Monetary Authority of Singapore. Paxos announced earlier this month that USDG operations have been expanded into the European Union in compliance with the Markets in Crypto-Assets (MiCA) framework.
Contact from Cointelegraph regarding USDG availability in jurisdictions without finalized regulatory approval was not received by publication time.
In terms of market presence, USDG maintains a significantly smaller circulation compared to established peers, with a current supply of $356 million versus billions held by larger stablecoins. Paxos intends to bridge this gap by leveraging established regulatory pathways.
The Global Dollar Network comprises several notable partners, including Robinhood, Kraken, Anchorage Digital, Beam Technologies, DBS Bank, and Standard Chartered Bank.
$250 billion stablecoin market sees increased retail and institutional participation
According to a 2024 Chainalysis report, measured by transaction volume, stablecoins represent one of the most significant applications of blockchain technology globally. In North America and Europe, stablecoins primarily function for settlement and liquidity management.
In 2024, stablecoins accounted for between 16% and 35% of transactional activity across major regions.
Stablecoins are proving increasingly relevant beyond crypto trading. Institutional adoption is growing, particularly in emerging markets where they serve as tools for secure transactions and preserving value against volatile local currencies. Banks are exploring blockchain and stablecoins to improve cross-border payments.
In the United States, corporate and institutional interest in stablecoins has notably grown following the passage of the GENIUS Act by the Senate last month. Large technology corporations, including Apple, and platforms like Elon Musk’s X are reportedly considering stablecoin payment integrations for their services.
Related:
How Big Tech is Banking on Stablecoins: Meta, Apple Poised for Breakthroughs
Stablecoin Revolution Accelerates: Banks Enter the Race to Build USD Alternatives
