30s Summary

Singaporean Paxos has launched a new stablecoin, USDG, which complies with the Monetary Authority of Singapore’s upcoming rules. Profits from USDG will be distributed among the Global Dollar Network’s original members including Anchorage Digital, Bullish, Galaxy Digital, Kraken, Paxos, Nuvei, and Robinhood. Unlike stablecoins like Tether’s USDT or Circle’s USDC, which retain all their reserves’ interest, USDG will share its returns. The largest bank in Southeast Asia, DBS Bank, will be the primary banking partner overseeing USDG’s cash management and reserves.

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Singapore-based Paxos has released a new stablecoin, USDG, which aligns closely with the Monetary Authority of Singapore’s upcoming stablecoin rules. The profit from USDG’s funds will be distributed amongst the original partners of the Global Dollar Network; Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.

The newly minted USDG aims to reward those who help boost its adoption by distributing the returns earned on its reserve assets. The heavyweights in the cryptocurrency world are supporting this regulation-centered initiative.

In an interview, Paxos CEO Charles Cascarilla described USDG as a “community token,” with around 97% of its economics being distributed, distinguishing it from other stablecoins.

The two giants in the stablecoin industry, Tether with their stablecoin (USDT) and Circle with their (USDC), keep all interest from reserves, unlike USDG. Other stablecoins also share returns, and there are innovative protocols like the M^0 project.

The revenue from USDG’s reserves, consisting mostly of U.S. Treasuries, will be shared among participants who help drive connectivity and liquidity. Cascarilla explains that rewards are distributed for activities that enhance the network’s utility and that different participants may receive different rewards, leading to a healthy ecosystem.

Incentives are provided to participant companies instead of end-users, allowing USDG to be accessed in the U.S. via the networks of their distribution partners, such as Anchorage, which is available in all 50 U.S. states.

DBS Bank, Southeast Asia’s largest bank in terms of assets, will act as the main banking partner at launch for overseeing cash management and custody of USDG reserves.