The blockchain and tokenization infrastructure platform Paxos announced on Thursday the launch of the Global Dollar (USDG), a US dollar stablecoin, with DBS Bank as its primary banking partner responsible for the cash management and custody of USDG reserves.
According to the press release, USDG essentially complies with the stablecoin framework that the Monetary Authority of Singapore (MAS) is set to issue, aimed at supporting the needs of regulated entities that maintain high operational standards. Paxos is required to hold high-quality liquid assets to back USDG, including US dollar deposits, short-term US Treasury bills, and other similar cash equivalents, to ensure that the stablecoin maintains a 1:1 peg with the US dollar and allows consumers to redeem it for fiat currency at any time.
The issuer of USDG, Paxos Digital Singapore, is Paxos's Singapore branch, regulated by the Monetary Authority of Singapore. Another subsidiary of Paxos, Paxos Global, will collaborate with global exchanges, wallets, and platform operators to distribute USDG to individuals and institutions.
USDG has been issued today on the Ethereum blockchain and will be launched on more blockchains in the near future.