Kraken and Galaxy Digital have co-pioneered the Global Dollar Network to strengthen USDG in an effort to promote more universal stablecoin products.
Leading Web3 companies, including Kraken, Galaxy Digital, Robinhood, and Paxos, have jointly established the Global Dollar Network, aiming to expand the use of the US Dollar through innovative stablecoin applications.
Kraken’s Role in the Global Dollar Network: Key Objectives
It’s not uncommon for crypto firms to unite in alliances to champion specific initiatives. In this case, the Global Dollar Network is working to drive the adoption of stablecoins.
As the announcement outlines, these companies will collaborate to implement real-world use cases for advanced payment solutions.
The alliance emerges as global interest in stablecoin regulation grows, with various regions seeking clearer guidelines for stablecoin issuers.
While the network’s initial founders are limited, it stated that membership is open to a wide range of industry participants, including exchanges, custodians, protocols, and card networks.
The Global Dollar Network’s primary objective is to promote USDG, a new Paxos stablecoin that has received regulatory approval from the Monetary Authority of Singapore (MAS).
All partners within the network will collaborate to introduce new USDG-based solutions, leveraging their combined business strengths.
Following this announcement, USDG is now accessible on Kraken, Anchorage Digital, and Galaxy Digital, with DBS Bank currently providing banking services.
Advancing Stablecoin Leadership
Many industry players are exploring ways to secure a position in the stablecoin market. To challenge the dominance of Tether (USDT) and Circle (USDC), PayPal introduced its PYUSD stablecoin last year.
While this has not yet unseated USDT or USDC, other companies, such as Ripple Labs, have made ambitious moves into the space.
Ripple’s RLUSD stablecoin is nearing launch, with testing underway on both the Ethereum and XRP Ledger.
Fintech firms like Revolut also have plans to launch their own stablecoins, indicating a trend where many are likely to join alliances or develop products to participate in the stablecoin sector.
