Global Dollar Network: The New Force in the Stablecoin Sector

The newly formed Global Dollar Network aims to accelerate the worldwide use of stablecoins while offering economic benefits to its partners. These digital tokens are designed to maintain a constant value and are pegged to traditional currencies like the US dollar or euro. In light of the surge in cryptocurrencies like Bitcoin this year, driven by forecasts of lower US interest rates and the launch of new crypto-linked exchange-traded products, more companies are investing in the promotion of stablecoins. These are commonly used to convert crypto tokens into traditional currencies, as they are not subject to the extreme price fluctuations of other cryptocurrencies. The Global Dollar Network is based on a new stablecoin called USDG, issued by the crypto platform Paxos from Singapore. A committee comprising representatives from network partners, including Anchorage Digital, Bullish, and Nuvei, will manage the token. USDG faces the challenge of establishing itself in a highly concentrated market where the two largest players, Tether and USD Coin, account for almost 90 percent of the total market capitalization. The initiative by the involved companies comes at a time when the crypto industry largely expects US authorities to have a more favorable view of digital assets, regardless of the outcome of Tuesday's presidential election. According to Paxos CEO Charles Cascarilla, the Global Dollar Network will return almost all revenues to its participants and is open to anyone who wishes to join. The goal is to promote the worldwide use of stablecoins and advance the societal adoption of this technology.