Paxos Unveils New Stablecoin Aimed at Boosting Global Adoption

Paxos has launched its new stablecoin, Global Dollar (USDG), specifically designed for the Singapore market and backed by U.S. dollars under the management of DBS Bank.

This move comes five months after the introduction of the Lift Dollar (USDL) in the United Arab Emirates.

Approved by the Monetary Authority of Singapore (MAS) in July 2024, USDG complies with the regulatory framework established in August. Initially available on the Ethereum blockchain, Paxos plans to expand its presence to additional chains as regulations evolve. The stablecoin is designed to facilitate the next wave of global adoption, catering to both cryptocurrency ecosystems and regulated institutions.

USDG is backed 1:1 by U.S. dollar deposits, short-duration U.S. government securities, and other cash equivalents, allowing users to redeem their tokens for fiat. Ronak Daya, head of product at Paxos, stated that the partnership with DBS will enhance enterprise-level adoption of stablecoins.

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With the increasing regulatory clarity, traditional financial institutions are exploring the launch of their own stablecoins, positioning themselves to leverage the growth of stablecoin usage in real-world transactions. Paxos continues to expand its digital asset offerings, which include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).

Kostadin Dimitrov