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• Robinhood, Kraken, Paxos, and other major crypto firms have launched the Global Dollar Network with USDG, a yield-sharing stablecoin issued by Paxos in Singapore.
• The Global Dollar Network will distribute income from USDG’s reserves to network participants, marking a shift in stablecoin economics toward rewarding partner firms.

A new stablecoin initiative, the Global Dollar (USDG), is being introduced with backing from prominent cryptocurrency firms, including Robinhood, Kraken, Paxos, Anchorage Digital, Bullish, Galaxy Digital, and Nuvei.

This coalition of companies, named the Global Dollar Network, aims to foster widespread adoption of USDG by offering yield to network participants. Income from USDG’s reserves will be distributed among these founding members, marking a shift in how stablecoin rewards are allocated.

The USDG stablecoin, issued in Singapore by Paxos, is designed to align with the Monetary Authority of Singapore’s forthcoming stablecoin framework. Paxos CEO Charles Cascarilla emphasized USDG’s community-centric approach, noting that approximately 97% of the generated yield will be shared within the network.

“This is meant to really be a community token,” Cascarilla stated, adding that USDG’s reward structure aims to engage firms actively in building the stablecoin’s liquidity and use cases. This approach contrasts with stablecoins like Tether (USDT) and Circle’s USDC, which retain all reserve-generated interest.

Cascarilla explained that participant firms within the network are incentivized based on their contributions to expanding USDG’s utility, creating an ecosystem where different members contribute distinct services, such as liquidity and network connectivity. Instead of offering returns to individual end users, USDG rewards participating companies, aligning interests within the stablecoin’s ecosystem.

Anchorage Digital, which operates across all U.S. states, is a key partner in the network’s American distribution strategy, allowing USDG access nationwide. DBS Bank, Southeast Asia’s largest bank, will act as the primary banking partner, handling cash management and custody for USDG reserves.