Seven prominent cryptocurrency companies have joined forces to introduce the stablecoin known as the Global Dollar (USDG), aiming to simplify the stablecoin landscape and accelerate its adoption. The initial partners in this venture include leading fintech and crypto firms Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.
A New Revenue Model: Rewarding Network Partners
Unlike traditional stablecoin structures where the issuing entity retains most of the profits generated from reserve assets, USDG will direct nearly all revenue back to its network partners. These partners—who may include liquidity providers, network validators, and platforms that integrate USDG—are rewarded for their role in growing and sustaining the USDG ecosystem. This revenue-sharing model is designed to foster active participation, drive ecosystem growth, and enhance USDG’s competitiveness within the stablecoin market.
By distributing the majority of earnings among partners, USDG seeks to create a collaborative network environment that attracts entities committed to contributing to its success.
Expanding the Global Digital Network
Beginning November 5, a broad array of cross-sector participants—including merchants, investment platforms, custodians, payment networks, card networks, banks, exchanges, and fintech payment providers—will be eligible to join the Global Digital Network, further extending USDG’s reach and adoption.
Reshaping Stablecoin Adoption with USDG
According to the Global Digital Network, USDG sets itself apart from other stablecoins by addressing industry standards and consumer protection requirements, a common shortcoming in existing stablecoin models. Through partnerships, the network leverages each collaborator’s strengths to drive broader financial solutions centered around USDG, supporting its credibility and stability.
Anchorage Digital CEO Nathan McCauley highlighted USDG’s potential for institutional use, allowing for faster cross-border and peer-to-peer payments, the opportunity to earn rewards on USDG deposits, and efficient trading capabilities. These features make USDG particularly valuable for institutional clients seeking security and functionality in a stablecoin.
A Collaborative Governance Structure
The Global Dollar Network will be governed by an advisory committee that includes partner representatives, ensuring that the stablecoin remains responsive to the needs of global businesses while encouraging collaborative innovation and sustainable growth.
As Charles Cascarilla, CEO and co-founder of Paxos, explained, most existing stablecoins lack regulatory oversight and sufficient reserves to fully back their value. These “reserve economies” refer to assets held to maintain the stablecoin’s stability and value. Without regulation, verifying the adequacy and security of these reserves can be challenging, potentially undermining consumer trust.
Kraken’s co-CEO, Arjun Sethi, emphasized that the limited competition in the regulated stablecoin market has slowed the sector’s growth. USDG’s approach offers a model for advancing stablecoin usage while maintaining transparency and financial stability.
USDG’s Role in Expanding Stablecoin Applications
Johann Kerbrat, GM and VP of Robinhood Crypto, noted that USDG represents a breakthrough in how people interact with payments and the U.S. dollar. By bridging traditional finance and cryptocurrencies, USDG aims to make transactions faster, more cost-effective, and efficient, laying the groundwork for new use cases in financial transactions.
While currently available by invitation, the Global Dollar Network plans to open access to qualified entities soon, expanding USDG’s footprint in the financial ecosystem.