Global Dollar (USDG) is a U.S. dollar-pegged stablecoin designed for the modern digital economy. Issued by Paxos Digital Singapore, USDG aims to provide a stable, transparent, and compliant bridge between traditional finance and blockchain technology. It powers the Global Dollar Network (GDN)—a growing ecosystem of financial and crypto institutions including Kraken, Robinhood, Mastercard, and Anchorage Digital. USDG is built to function across multiple blockchain platforms while meeting strict regulatory standards in multiple jurisdictions, setting it apart from earlier generations of stablecoins.
History
USDG was launched on November 1, 2024, by Paxos as the core asset of the Global Dollar Network. This launch came in response to rising global demand for a fully regulated, transparent, and enterprise-ready stablecoin. Paxos—already known for developing the Pax Dollar (USDP)—partnered with industry leaders including Kraken, Robinhood, Anchorage Digital, Bullish, Galaxy Digital and Nuvei to build the Global Dollar Network, a system that connects traditional finance and blockchain infrastructure.
The token is issued by Paxos Digital Singapore, regulated under the Monetary Authority of Singapore (MAS). Reserves backing USDG are held at DBS Bank, one of Asia's leading financial institutions. In July 2025, USDG achieved another major milestone when it became one of the first stablecoins to be fully compliant with the European Union's Markets in Crypto-Assets (MiCA) regulation. Under this framework, USDG is supervised by authorities such as FIN-FSA in Finland, enabling legal use throughout the EU and strengthening its global credibility.
What’s Unique About USDG?
What sets USDG apart from other stablecoins is its combination of strong regulatory compliance, full reserve transparency, and a unique economic model that aligns incentives across its ecosystem. Each USDG token is backed 1:1 by U.S. dollar reserves or equivalent assets, held in segregated accounts at regulated financial institutions such as DBS Bank. Paxos, the issuer, provides regular third-party attestations by Enrome LLP to confirm that reserves match circulating supply.
Importantly, USDG is issued under the supervision of the Monetary Authority of Singapore (MAS) and is fully compliant with MiCA, the European Union’s regulatory framework for crypto-assets. This gives USDG a significant trust advantage, as it meets rigorous legal standards in both Asia and Europe. It ensures compliance with fiat requirements, asset custody rules, and anti-money laundering protocols. These dual licenses allow USDG to be legally integrated into banking, payments, and trading platforms across major global markets.
Another unique feature of USDG is its yield-sharing model. Unlike most stablecoins, USDG distributes a portion of the revenue generated from its reserves to its partners in the Global Dollar Network. This includes platforms like Kraken and Robinhood, who help issue, distribute, and support USDG use across retail and institutional markets. This creates a strong financial incentive for ecosystem participants to drive adoption and maintain a high standard of service.
USDG is also designed to be chain-agnostic and interoperable. It currently functions across Ethereum, Solana, and Kraken’s Ink (a ZK-rollup Layer-2 network), giving users the flexibility to access fast, low-cost stablecoin transactions no matter what blockchain environment they prefer.
How USDG Is Used
USDG is designed for a wide variety of use cases, serving both retail and institutional users. For individuals, it acts as a stable, fast, and low-cost alternative to traditional money transfers. Users can send assets across borders in minutes, avoiding high banking fees and settlement delays. USDG also serves as a digital dollar for crypto traders who want to move in and out of volatile markets while maintaining dollar value.
For businesses and institutions, USDG powers treasury operations, trading desks, and lending protocols. It is used by members of the Global Dollar Network to facilitate transactions and settlements, often with the added incentive of yield sharing. These partners integrate USDG into exchanges, wallets, and financial services, creating a stablecoin ecosystem that benefits from both utility and revenue participation.
USDG is also prevalent in decentralized finance (DeFi). It’s compatible with smart contracts on Ethereum (as an ERC-20 token), on Solana (as an SPL token), and on Kraken’s Layer-2 Ink network. This multi-chain support allows it to be used in lending, borrowing, trading, and staking across a wide array of DeFi platforms.
USDG is a stablecoin that combines the strengths of traditional financial systems with the innovation and accessibility of blockchain. Launched by Paxos and backed by major financial and crypto players, it offers regulatory clarity, full backing, revenue-sharing incentives, and multi-chain support. With strong oversight from MAS and compliance with the EU’s MiCA framework, USDG is setting a new standard for trust and utility in the stablecoin space. If you have USDG on Ethereum, to get it on another network you would have to bridge. This article explains what it means to bridge your tokens and our L2 for Beginners article explains more about layer 2 networks.
You can buy, hold, and bridge USDG in the MEW Mobile app if you prefer using mobile, or by downloading the Enkrypt browser extension if you prefer using a web browser.
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