Introduction
Stablecoins bridge traditional finance and blockchain by pegging their value to fiat currencies like the US dollar. However, regulatory hurdles often limit their adoption—for instance, USDT was delisted in Europe in 2024 for non-compliance with MiCA regulations.
The Global Dollar (USDG), issued by Paxos Dollar Singapore Ltd, emerges as a compliant alternative, designed to meet stringent regulatory standards while enhancing enterprise utility.
What is the Global Dollar (USDG)?
USDG is a USD-backed stablecoin regulated by Singapore’s Monetary Authority (MAS) and backed by the Global Dollar Network—a consortium including Paxos, Robinhood, Kraken, and Galaxy Digital.
👉 Explore USDG’s network partners
Key Features:
- Regulatory Compliance: Operates under MAS’s Major Payment Institution license.
- Full Reserve Backing: 1:1 peg to USD, backed by liquid assets like US Treasuries.
- Transparency: Monthly reserve audits by Enrome LLP.
How Does USDG Work?
- Minting/Redemption: Each USDG is backed by 1 USD held at DBS Bank.
- Blockchain Support: ERC-20 token on Ethereum, with plans for multi-chain expansion.
- Smart Contracts: Publicly verifiable via Etherscan.
USDG vs. USDT vs. USDC
| Feature | USDG | USDT | USDC |
|---------------|--------------------------|--------------------|--------------------|
| Regulator | MAS (Singapore) | None | NYDFS (USA) |
| Backing | Full reserves (audited) | Partial reserves | Full reserves |
| Transparency | Monthly reports | Quarterly reports | Monthly reports |
Is USDG a Good Investment?
Stablecoins like USDG are not investments but tools for:
- Hedging crypto volatility.
- Cross-border transactions.
- Earn yield via DeFi protocols.
Risks: Regulatory shifts and USD liquidity fluctuations.
FAQs
1. Where can I buy USDG?
Currently available on select exchanges (e.g., Kraken) and enterprise invite-only platforms.
2. How is USDG different from PayPal’s PYUSD?
USDG is MAS-regulated, while PYUSD is NYDFS-regulated. Both are Paxos-issued.
3. Are USDG reserves audited?
Yes, by Enrome LLP monthly—view reports here.
Latest Updates
👉 Paxos partners with Standard Chartered for reserve management, enhancing USDG’s stability.
Conclusion
USDG combines regulatory rigor, institutional backing, and transparency—positioning it as a leader in compliant stablecoins. Its focus on enterprise adoption and revenue-sharing with network participants sets it apart.
For ventures exploring stablecoin integration, USDG offers a future-proof solution.
### SEO Keywords:
- Global Dollar (USDG)
- Paxos stablecoin
- MAS-regulated stablecoin
- USDG vs USDT
- ERC-20 stablecoin
- Stablecoin reserve audit