A consortium of major firms from traditional finance, including Robinhood, Kraken, and Paxos, has launched the Global Dollar Network to promote the use of stablecoins. The network focuses on the new USDG stablecoin, which is pegged to the United States dollar and is designed to enhance stablecoin adoption globally. Kraken co-CEO Arjun Sethi emphasized that the regulated stablecoin market has seen limited competition, and USDG aims to bring mainstream participants and new use cases to the ecosystem. The USDG stablecoin will initially be available on the Ethereum blockchain, with expansion to other chains as regulations develop. Paxos will oversee the issuance of USDG from Singapore, ensuring compliance with local regulations. The US dollar backing of USDG is managed by Singapore’s largest bank, allowing users to redeem tokens for fiat. This initiative enters a market currently dominated by Tether and Circle’s USD Coin, which control a significant share of the stablecoin supply on Ethereum.

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