Paxos, Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei and Robinhood presented the Global Dollar Network and the new stablecoin Global Dollar (USDG). The creators call one of the advantages of the project a system for distributing income from USDG reserves among network participants who support the development of the token. Writes about this RBC Crypto.
The goal of the Global Dollar Network project was to “accelerate the global adoption of stablecoins,” the issuer said in a press release. Many stablecoins do not meet market requirements, their business models are outdated, and these shortcomings hinder innovation and cause lost profits for market participants, the report said. According to them, the Global Dollar Network will revolutionize this area.
The largest stablecoin by capitalization is Tether (USDT) from Tether Limited. Its market value as of November 5 exceeds $120 billion. The second place is USDC from Circle and Coinbase with a capitalization of $35 billion. The issuers of USDT and USDC do not distribute income received from collateral assets, but take them into account on their balance sheets.
New USDG tokens were issued in accordance with the requirements that the Central Bank of Singapore (MAS) is developing for stablecoins, Paxos reported. The company received approval from the local regulator to launch a stablecoin back in July.
The first 10.7 million USDG were issued November 1 on the Ethereum network. Paxos is awaiting regulatory approval to launch tokens on other blockchains.
The companies managing the Global Dollar Network include the Anchorage Digital crypto platform, the Bullish crypto exchange (owner of the CoinDesk publication), the Galaxy Digital management company, the Kraken exchange, the Nuvei payment system, the issuer of stablecoins PayPal USD (PYUSD) and Pax Dollar (USDP) Paxos, and also the Robinhood trading platform.
The custodian is DBS Bank. It will manage USDG reserves. According to Global Finance, DBS Bank has been recognized as the most reliable bank in Asia for 16 years in a row, it said.
The creators call one of the important features of the new stablecoin the ability to receive income from USDG reserves for supporting the token and participating in its development.
According to Cascarilla, the income generated from USDG reserves will be distributed. The head of Paxos noted that this is very different from the way other stablecoins function today.
The reserves backing Tether stablecoins amounted to $125.4 billion at the end of the third quarter of the year. Of this, $102.5 billion comes from US Treasury bonds.
Tether stores part of its stablecoin collateral in gold. The company noted that Tether’s net profit in the third quarter of the year reached $2.4 billion, which was facilitated by the rise in the price of gold – the increase in the price of precious metal reserves brought about $1.1 billion in unrealized profit during the reporting period.
Previously, tokenized real world assets (RWA) from Wall Street giants were named as future competitors of Tether. IN Bloomberg They believe that the issuers of RWA tokens expect that people will continue to use stablecoins for payments, but will prefer to store funds in digital instruments with profitability.
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Source: Cryptocurrency
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