Paxos has unveiled Global Dollar USDG, a stablecoin with potent United States dollar backing. The fintech company relayed its latest invention news via an October 31 press release. According to the publication, Paxos Digital Singapore Pte. Ltd will issue the USDG.
Interestingly, the US dollar-backed entity strictly aligned with the Monetary Authority of Singapore (MAS) guidelines for similar products. The press release noted that Paxos Global Pte. Ltd will take charge of the USDG distribution to customers and firms. The distribution will involve partnering with wallets, global exchanges, and other related companies to enhance the process.
Announcing the new development, Ronak Daya, the Head of Product at Paxos, remarked: “Enterprise interest in stablecoins has never been higher than it is today, but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises. Keeping with the Paxos tradition of powering infrastructure for the world’s leading and innovative enterprises, we are thrilled to launch the Global Dollar (USDG). “
USDG Unique Properties
Aside from aiding in global stablecoin adoption, USDG will serve as a problem solver for companies with high operational standards. Meanwhile, USDG runs on only the Ethereum blockchain. However, there are plans to integrate the stablecoin with other networks soon.
For its part, Paxos must maintain high-quality liquid assets, including short-duration US government securities, US dollar deposits, and other valuable related entities. With these, Paxos will sustain a USDG to US dollar ratio of 1:1. Hence, users will have no problem redeeming coins for fiat.
Paxos Other Stablecoins
Before now, Paxos has issued several other stablecoins in collaboration with different payment firms. According to the blog article, USDG is the fintech's sixth stablecoin project and the first from its Singapore branch. Some of Paxo's earlier digital assets include Pax Dollar (USDP), Pax Gold (PAXG), and PayPal USD (PYUSD).
Paxos Trust Company, LLC, the fintech platform's subsidiary, managed by the New York Department of Financial Services, is responsible for issuing the three assets listed above. “Paxos International, a UAE-based affiliate of Paxos regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), issues the yield-bearing stablecoin Lift Dollar (USDL),” the documented release added. Meanwhile, DBS Bank will partner with Paxos to help manage cash and USDG reserves custody.
