Robinhood and Kraken launch new network

Leading fintech companies and organizations working with digital assets have announced the launch of the Global Dollar Network — an open network aimed at accelerating the adoption of stablecoins and their use in real economic conditions.

The largest industry players, including Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood, have joined the Global Dollar Network.

Use of the new asset

The network will be based on a new stablecoin from Paxos — Global Dollar (USDG). USDG will comply with the upcoming stablecoin framework being developed by the Monetary Authority of Singapore and will provide participants with returns on reserve assets, incentivizing the adoption of this token for financial and cryptocurrency solutions.

Benefits for institutions

The co-founder of Kraken stated that USDG changes the dynamics of the regulated stablecoin market, offering a fairer model that can attract both institutional investors and a broader audience.

The network has already begun an invitation phase for select participants, including custodians, exchanges, payment processors, merchants, and banks. They will be able to develop new financial solutions using the USDG token.

The CEO of Anchorage Digital highlighted key benefits for institutions: fast peer-to-peer and cross-border transactions, as well as the opportunity to earn interest on stablecoin deposits.

DBS Bank, the largest bank in Southeast Asia, will provide cash management and reserve custody for USDG.

Impact on the financial system

The CEO of Paxos emphasized the important role of the Global Dollar Network in transforming the financial system. He noted that the network will help businesses seamlessly integrate stablecoins into their business models.