What is Global Dollar (USDG)?

Quick Facts

  • Issuer: Paxos Digital Singapore Pte. Ltd.
  • Peg: 1:1 to the US dollar
  • Backing: USD deposits and short-term US Treasury equivalents
  • Regulators: MAS (Singapore) and FIN-FSA / MiCA (EU)
  • Launched: November 2024
  • Blockchains: Ethereum, Solana, Ink, X Layer, and more
  • Ecosystem: Part of the Global Dollar Network (GDN)

Introduction

Global Dollar (USDG) is a fully regulated, fiat-backed stablecoin pegged 1:1 to the US dollar. It is issued by Paxos Digital Singapore and is designed to combine rigorous regulatory compliance with a transparent economic model that rewards the enterprises and platforms that drive its adoption.

Unlike many stablecoins where reserve income flows entirely to the issuer, USDG introduces a revenue-sharing model that distributes the returns generated by its reserve assets back to network partners.

History & Background

Paxos introduced USDG in November 2024, alongside the launch of the Global Dollar Network (GDN). The initiative was founded together with major industry players including Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish, Nuvei, and Paxos itself.

The launch addressed a recognized gap in the stablecoin market: the lack of enterprise-grade stablecoins that offer both strong compliance and real economic incentives for distributors. Paxos brought experience from prior stablecoin projects, including USDP and PYUSD, to shape USDG.

How Global Dollar Works

USDG maintains its dollar peg through full 1:1 backing with US dollar deposits and short-duration US Government securities held in segregated, bankruptcy-remote accounts. Users can redeem USDG directly with Paxos at any time.

Transactions settle in minutes on Solana and Ethereum, a significant improvement over traditional fiat rails. All token operations follow smart contract rules, including the ERC-20 standard on Ethereum and the SPL standard on Solana.

Tokenomics

USDG's economic design is centered on its partner reward model. Enterprises that integrate USDG — such as exchanges, wallets, payment processors, and DeFi protocols — can earn a share of the returns generated by USDG reserve assets held on their platforms. Some partners pass a portion of this revenue on to end users through savings or earn programs.

This structure aligns incentives across the entire distribution network rather than concentrating revenue at the issuer level.

Circulating supply ? 2.98 billion USDG
Total supply ? 2.98 billion USDG
Max supply ? -- USDG
Updated 5h ago

Ecosystem & Use Cases

USDG is built for a wide range of financial applications: payments, settlements, treasury management, and DeFi liquidity. It is available to any user with an Ethereum- or Solana-compatible wallet.

The Global Dollar Network (GDN) is the open enterprise ecosystem that powers USDG adoption. GDN members include major exchanges, custodians, fintech platforms, and payment processors operating globally.

Team, Governance & Community

USDG is governed by Paxos, a regulated blockchain infrastructure company authorized to issue stablecoins in the US, UAE, Singapore, and EU. The Monetary Authority of Singapore (MAS) supervises the Singapore-issued token, while the EU version complies with the MiCA regulatory framework under FIN-FSA oversight.

GDN operates as an open, distributed network of enterprise partners who collectively work toward accelerating stablecoin adoption.

Advantages

  • Regulatory compliance: Overseen by MAS and compliant with MiCA, offering strong consumer protections.
  • Revenue sharing: Partners earn from reserve returns, creating genuine adoption incentives.
  • Multi-chain availability: Deployed on Ethereum, Solana, and additional networks for broad reach.
  • Institutional backing: Issued by Paxos with DBS Bank as a top-tier banking partner.
  • Fast settlement: Transactions typically settle in minutes versus days for traditional fiat.

Risks & Challenges

  • Regulatory dependency: USDG's compliance is tied to MAS and MiCA frameworks; regulatory changes could impact operations.
  • Issuer concentration risk: Paxos serves as the sole issuer and redemption counterparty.
  • Competitive market: The stablecoin space is dominated by well-established players like USDT and USDC.
  • Adoption curve: The revenue-sharing model requires broad enterprise participation to reach its full potential.

Long-Term Vision

Paxos and the Global Dollar Network aim to reshape digital finance by making stablecoins more equitable and broadly accessible. The vision is a global, stablecoin-enabled financial system where all network participants — from enterprises to end users — benefit proportionately from the ecosystem's growth. Expansion across more blockchains and jurisdictions remains a core part of that roadmap.

Frequently Asked Questions

USDG is a US dollar-backed stablecoin issued by Paxos Digital Singapore. It maintains a 1:1 peg with the US dollar and is backed by USD deposits and short-term US Treasury equivalents.

USDG is issued by Paxos Digital Singapore Pte. Ltd., a Major Payments Institution supervised by the Monetary Authority of Singapore (MAS). In the EU, it is issued by Paxos Issuance Europe under MiCA compliance.

The Global Dollar Network is an open ecosystem of enterprise partners — including Robinhood, Kraken, Galaxy Digital, and others — that distribute USDG and earn a share of the reserve returns it generates.

Exchanges, wallets, payment processors, and DeFi protocols that integrate USDG can earn a portion of the returns from USDG reserve assets held on their platforms. This incentivizes broader distribution and adoption across the ecosystem.

USDG is issued on Ethereum, Solana, Ink, X Layer, and a growing set of public permissionless blockchains. Anyone with a compatible wallet can send or receive USDG.

Yes. USDG is substantively compliant with the MAS stablecoin framework in Singapore and fully compliant with the EU's MiCA regulation, making it one of the more regulated stablecoins available globally.

USDG's key differentiator is its revenue-sharing model, which distributes reserve income to network partners rather than retaining it at the issuer level. It also carries dual regulatory compliance under both MAS and MiCA.

Yes. USDG is fully redeemable from Paxos on a one-to-one basis for US dollars at any time, backed by segregated, bankruptcy-remote accounts holding USD deposits and government securities.