Paxos has launched the USDG stablecoin in the European Union, pegged to the US dollar. The stablecoin is supported by companies like Robinhood (HOOD, Financial), Mastercard (MA), and Kraken, offering access to over 450 million consumers across 30 countries. The token complies with the EU's Markets in Crypto Assets Regulation (MiCA) and is regulated by both the Finnish Financial Supervisory Authority and the Monetary Authority of Singapore.
Issued by Paxos Issuance Europe OY, a Finnish entity, USDG aligns with the EU's new crypto asset framework. Paxos will maintain part of USDG's cash reserves in European banks and ensure one-to-one redemption, adhering to MiCA's stringent support and audit rules. Despite strict EU crypto laws, Paxos reports a surge in demand for dollar-pegged currencies. USDG is expected to compete with other regulated stablecoins like Circle's USDC, the first MiCA-licensed stablecoin and currently the largest MiCA-compliant token.
USDG, set to launch in November 2024, is part of the Global Dollar Network (GDN), a coalition aiming to promote stablecoin adoption. Founding partners include Robinhood, Kraken, Paxos, Anchorage, Nuvei, Bullish, and Galaxy. Robinhood recently announced an ambitious suite of crypto products, including tokenized stocks, ETFs, crypto perpetual futures, and staking services, enhancing its competitive edge in the crypto market.
