What is Global Dollar (USDG)?

Deep Dive

1. Regulatory Compliance & Backing

USDG is issued by Paxos Digital Singapore, a MAS-regulated entity, and Paxos Issuance Europe, compliant with the EU’s MiCA framework. Reserves are held in cash, U.S. Treasuries, and cash equivalents, with monthly attestations (Global Dollar). This dual regulatory alignment ensures USDG meets strict consumer protection standards in both Asia and Europe.

2. Multi-Chain Architecture

USDG operates as an ERC-20 token on Ethereum and an SPL token on Solana, enabling sub-$0.001 fees and near-instant settlement. Its expansion to Solana in February 2025 targeted payment use cases, leveraging the chain’s 65,000 TPS throughput (CoinMarketCap Community). Developers can access testnet faucets and SDKs for cross-chain interoperability.

3. Ecosystem & Use Cases

The Global Dollar Network incentivizes partners (e.g., Kraken, OKX) to adopt USDG by sharing up to 100% of reserve yield revenue. Use cases include:
- Payments: Visa integrates USDG for settlement, reducing traditional banking delays.
- DeFi: On Solana’s Kamino Finance, USDG is the third-most-traded stablecoin, used for borrowing against assets like SOL and xBTC (Kamino).
- Institutional access: Robinhood and Galaxy offer USDG for payroll and treasury management.

Conclusion

USDG combines regulatory rigor with multi-chain flexibility, positioning itself as a bridge between traditional finance and crypto. As stablecoin competition intensifies, will its revenue-sharing model and compliance focus drive broader adoption beyond current EU and Asian markets?