Robinhood, Kraken and Paxos to Launch Global Dollar Stablecoin Network

Leading players in the crypto and traditional finance industries have joined forces to launch a regulated network, the Global Dollar Network (GLN), to accelerate the adoption of stablecoins.
On the 5th (local time), Robinhood, Galaxy Digital, and Galaxy
Digital, Kraken, Paxos and other companies have formed a consortium to back the newest stablecoin pegged to the U.S. dollar.
On this day, blockchain infrastructure company Paxos announced that its new open network was designed to accelerate the global adoption and use of stablecoins.
"The lack of competition in the regulated stablecoin market is preventing the industry from reaching its full potential," Kraken co-CEO Arjun Sethi said in a statement.
"USDG's fairer model will allow mainstream participants to join the ecosystem and accelerate new stablecoin use cases."
The network is designed to support the global adoption of the USDG stablecoin, which Paxos launched on November 1st.
USDG can currently only be used on the Ethereum blockchain, but Paxos hopes that it will be available on other blockchains as regulatory developments progress.
Paxos plans to issue the USDG stablecoin in Singapore, which will be subject to approval by the Monetary Authority of Singapore (MoS) in August 2023.
"This is substantially aligned with the new stablecoin framework announced by the Authority of Singapore."
Qualified trustees, exchanges and fintech companies can apply to join the Global Dollar Network through a letter of invitation.
According to Paxos, USDG stablecoin deposits will be managed by DBS, Singapore's largest bank, and USDG will be backed by a 1:1 exchange rate.
The tokens will be backed by US dollars and short-term US government obligations and other cash equivalents in proportion to the value of the cryptocurrency, and users will be able to convert the tokens into fiat currency.