Some leading cryptocurrency companies have officially formed an alliance aimed at encouraging digital asset users around the world to adopt stablecoins. Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, Nuvei, and Paxos join the launch New stablecoin Known as USDG, or Global Dollar Network, which helps integrate stablecoins into everyday financial transactions.
New stable network
A partnership between Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, Nuvei, and Paxos gave rise to the open network called Global Dollar Network.
According to their joint statement, the new network was created to accelerate the use of stablecoins around the world. These leaders in their industries, united by a common goal, will pool their resources and leverage their expertise to push for broader adoption of the currency, making it a more global digital currency.
Consortium Encourage other companies, custodians, payment instruments, cryptocurrency exchanges and other platforms to become part of the newly formed stablecoin network so they can work together to innovate global money.
USDG, a new USD-denominated stablecoin has finally arrived, and I couldn’t be more excited about it @Morsi Digital role.
As a premier partner, we make sure organizations have everything they need to handle USDG with confidence. 🚀 https://t.co/QoWEuPxMtE
—Nathan McCauley (@nathanmccauley) November 4, 2024
Anchorage Digital, a leading member of the network, is thrilled about what the future holds for this partnership. The company’s CEO, Nathan McCauley, said that their company supports the introduction of the global dollar network, saying that a stablecoin block will greatly benefit users of the currency.
“Institutions gain an incredible range of opportunities with stablecoins: fast peer-to-peer and cross-border settlement, efficient trading capacity, and the opportunity to earn rewards on select stablecoin deposits,” McCauley said.
USDG stablecoin
Through cooperation, the new network will issue a new stablecoin called US dollars Which will be linked to one is one to the dollar.
The stablecoin bloc aims to challenge the status quo in the digital asset market currently dominated by Circle’s USD Coin (USDC) and Tether’s USDT. With the arrival of USDG, it has the potential to reshape Stablecoin landscape.
According to CoinGecko, 90% of the total stablecoin market capitalization consists of USDC and USDT.
Kraken co-CEO Arjun Sethi said the industry has not reached its potential due to a lack of competition in the regulated stablecoin market, claiming that USDG would flip this dynamic because the new stablecoin offers a more equitable model.
“It will attract key participants into the ecosystem and accelerate new stablecoin use cases,” Sethi adds.
On the other hand, Tom Farley, CEO of Bullish, said that the network has increased the number of “trusted” stablecoins to choose from.
“Trustworthy stablecoins are essential to bridging the gap between crypto and traditional markets,” Farley added.
The importance of the dollar network
Stablecoins, backed by traditional currencies, are created to maintain a constant value.
These digital assets are typically used to convert cryptocurrencies into traditional currencies since the token is not affected by wild price fluctuations as is the case with other digital currencies.
Paxos CEO Charles Cascarella explained that stablecoins are being used to replatform the financial system by revolutionizing the interaction between people and the US dollar, adding that the global dollar network will stimulate the use of stablecoins and accelerate their adoption in society.
Featured image from Pixabay, chart from TradingView