Leading companies in the %Cryptocurrency space are throwing their support behind a new global %Stablecoin that would be tied to the U.S. dollar.
Called the %GlobalDollar (CRYPTO: $USDG), the new stablecoin would return yield earned on its reserve assets to participants who help accelerate its adoption around the world.
Companies that have quickly thrown their support behind the Global Dollar include Anchorage Digital, Galaxy Digital, Kraken, %Nuvei (NASDAQ: $NVEI), and %Robinhood Markets (NASDAQ: $HOOD).
The Global Dollar will be issued out of Singapore by Paxos (PAX) and will comply with the Monetary Authority of Singapore’s stablecoin framework.
Stablecoins are cryptocurrencies whose value is tied to an underlying asset such as the U.S. dollar or gold bullion.
The stablecoin market is currently dominated by %Tether (CRYPTO: $USDT) and %Circle (CRYPTO: $USDC), which have the two largest stablecoins in the world.
Few stablecoins currently in existence share yield with their promoters. Both Tether and Circle retain all the interest accrued from their U.S. dollar reserves.
With the Global Dollar, income generated from its U.S. dollar reserves will be shared among participants based on the ways the firms create connectivity and liquidity.
The Global Dollar will be made available in the U.S. through distribution partners such as Anchorage Digital and Robinhood Markets.
DBS Bank, Asia’s largest bank by assets, will serve as the primary banking partner for cash management and custody of the Global Dollar’s reserves, said Paxos in a news release.