Crypto firms including Robinhood, Kraken launch global stablecoin network
A consortium of financial technology and cryptocurrency companies, including Robinhood, Kraken, and Galaxy Digital, has launched a joint stablecoin called USDG (Global Dollar Network), pegged to the US dollar. The aim is to accelerate the adoption of stablecoins worldwide and promote an asset that provides proportionate economic benefits to its partners. Stablecoins are digital tokens designed to maintain a constant value, often used for converting crypto tokens into traditional currencies due to their stability.
The Global Dollar Network faces competition from existing players like Tether and USD Coin, which dominate nearly 90% of the market capitalization. However, the launch is seen as a positive step as US officials are expected to become more welcoming to digital assets, regardless of who wins the presidential election.
Key aspects of the move include:
- The stablecoin will be issued by crypto platform Paxos and governed by a committee of representatives from the network’s partners.
- It aims to incentivize global stablecoin usage and accelerate widespread adoption.
- Rewards for participants will be returned virtually all, making it open to anyone to join.
The launch comes as the industry anticipates increased acceptance of digital assets in the US.