Global Dollar Network: Paxos and Other Fintech Giants Unite to Fast-Track Stablecoin Adoption

Called the Global Dollar Network, it is one of the revolutions in the cryptocurrency sector, which is developing in parallel with the significant returns of the ecosystem. This is the booming field of digital stability, with stablecoins most often backed by the US dollar.

The success is such that even traditional banks are embarking on this adventure, in which the company Paxos is already a historic player. This is the reason why it has just announced a new initiative called Global Dollar Network, in partnership with giants of the crypto and fintech sector. All developed around its regulatory correct stablecoin USDG.

Paxos Launches Global Dollar Network

Paxos is a historic player in the booming stablecoin sector. A position that has not only brought it good experiences. Just remember the case of the BUSD stablecoin developed on behalf of Binance, reduced to nothing by the United States SEC.

An adventure that has clearly left its mark. Since then, Paxos has been trying to build a legally correct identity for itself from Singapore. But without ever forgetting to be innovative, as in the case of its “yield-bearing” stablecoin Lift Dollar (USDL).

Because the real current challenge of this digital stability ecosystem is undoubtedly regulatory. And establishing itself as the leader in the manner of Tether (USDT) is clearly not enough to escape the problems that this paradigm shift implies.

Could this be one of the reasons for the recent merger between Paxos and crypto and fintech companies Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei and Robinhood? The goal is in any case very clear: to establish the development of the Global Dollar Network project.

Increasing stablecoin adoption with real-world use cases

Until now, the development of stablecoins involved their implementation on a case-by-case basis on the main available blockchains. All the more so with an Ethereum network whose excessively high fees made any operation almost impossible.

Sluggish interoperability, according to Paxos specialists. With adoption severely “limited by obsolete business models that impose high costs on blockchain ecosystems and the economy in general.” And stablecoins too often outside the necessary legal frameworks.

“These gaps hinder global innovation and represent a lost opportunity for payment providers, custodians, exchanges and investment platforms looking for low-cost, secure stablecoins. The Global Dollar Network is revolutionizing this market by delivering a trusted stablecoin that provides commensurate economic benefits to all partners.”

A solution at the center of which will be the Paxos USDG stablecoin. The latter is able, according to Kraken Co-CEO Arjun Sethi, to take full advantage of the “ lack of competition in the regulated stablecoin market.”

The Global Dollar Network project wants to establish itself as the regulatory champion of the stablecoin sector. A solution open to all companies wishing to join this “global monetary movement.” Because these stable cryptocurrencies have become much more than a simple crypto trading tool. And many other possible use cases remain to be discovered.

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(Featured image by petre_barlea via Pixabay)

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First published in JOURNAL DU COIN. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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