About
Global Dollar (USDG) is an institutional-grade, fiat-backed stablecoin designed to bridge the gap between traditional global finance and the decentralized digital economy. It was launched through the Global Dollar Network, an enterprise-driven consortium co-founded by industry leaders including Paxos, Robinhood, Kraken, Galaxy Digital, and Anchorage Digital. Unlike first-generation stablecoins that primarily serve retail trading, USDG is engineered to meet the stringent regulatory and operational requirements of global enterprises, providing a secure settlement layer for payments, treasury management, and cross-border value transfer.
The protocol operates on a 1:1 reserve model, where every USDG token in circulation is fully backed by high-quality liquid assets held in segregated, bankruptcy-remote accounts. These reserves typically consist of U.S. dollar deposits, short-term U.S. Treasury bills, and overnight reverse repurchase agreements. Issued by Paxos Digital Singapore and Paxos Issuance Europe, the asset is subject to oversight by the Monetary Authority of Singapore (MAS) and is compliant with the European Union’s Markets in Crypto-Assets (MiCA) framework. This dual-jurisdiction compliance ensures that the token maintains a stable value and is always redeemable for fiat currency at par.
One of the most distinctive features of the Global Dollar is its unique economic distribution model, which deviates from the centralized revenue structures of major competitors. While traditional stablecoin issuers usually retain the entirety of the interest income generated by their reserves, the Global Dollar Network is designed to share approximately 97% of its network economics with its ecosystem partners. This incentive alignment encourages exchanges, fintechs, and payment processors to actively promote and integrate USDG, as they receive a proportionate share of the reserve yield based on the liquidity and adoption they drive.
From a technical perspective, USDG is built as an interoperable digital asset that functions across multiple blockchain environments, including Ethereum, Solana, and Layer 2 solutions like Ink. As an ERC-20 compliant token on Ethereum, it can be seamlessly integrated into existing smart contracts and DeFi protocols for lending, borrowing, and liquidity provision. The use of multi-signature controls and emergency pause protocols provides an additional layer of security, ensuring that the network can respond to critical threats while maintaining the integrity of the minting and burning processes essential for supply elasticity.
Ultimately, Global Dollar exists to provide a more equitable and transparent alternative to the existing stablecoin duopoly. By combining the stability of the U.S. dollar with the speed and programmability of blockchain technology, it facilitates real-time settlement that bypasses the delays and fees associated with legacy banking systems. Its focus on regulatory clarity and institutional-grade custody makes it a primary choice for corporations seeking to utilize digital dollars for high-frequency transactions and global commerce within a legally recognized framework.
