Global Dollar Stablecoin Launches in the EU with MiCA Compliance
The Global Dollar (USDG) stablecoin, issued by Paxos, is now available in the European Union. It complies fully with the Markets in Crypto-Assets Regulation (MiCA), setting a new standard for stablecoins in the region. The Finnish Financial Supervisory Authority and Singapore’s central bank oversee its operations.
Key Features of USDG
- MiCA-compliant
- Guaranteed one-to-one redemption
- Part of cash reserves held in European banks
Availability and Partnerships
Users can access USDG through major exchanges like Kraken and Gate, as well as platforms such as Coinmetro and SwissBorg. The Global Dollar Network (GDN) initiative, backed by Paxos, Kraken, Robinhood, and over 20 financial and fintech firms, including Mastercard, highlights growing interest in stablecoin solutions.
Market Trends
The stablecoin market has grown significantly, reaching a total market capitalization of $253.85 billion. Yield-bearing stablecoins now make up 4.5% of the market, up from 1% in early 2024.
Expert Perspective
“Demand for stablecoins continues to rise rapidly,” said Walter Hessert, Head of Strategy at Paxos. He attributes this growth to stablecoins’ ability to address key financial challenges.
